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Self-Directed IRA Custodians

Understanding Self-Directed IRAs

Introduction

Self-directed IRAs allow you to invest your retirement funds in alternative assets like real estate, private companies, precious metals, etc. This differs from traditional IRAs that usually invest in stocks, bonds, and mutual funds. However, self-directed IRAs still require an IRA custodian to handle the administrative and compliance aspects of the account.

Many IRA custodians avoid working with self-directed IRAs because they miss out on transaction fees and other revenue compared to traditional IRAs. So it’s important to find an IRA custodian that is flexible and open to alternative investments.

Navigating A Maze of Options

With potentially thousands of IRA custodians and third-party administrators (TPAs) in the market today, most are not hospitable to the IRA LLC arrangement with checkbook control because either they fail to recognize its legitimacy or it’s too costly for them to do so.

After all, if your IRA LLC gives you a license to make your own investment decisions, your IRA custodian stands to lose lots of money in processing and transaction fees over the life of your IRA.

IRA Custodians vs. Third-Party Administrators (TPAs)

IRA custodians are financial institutions subject to specific banking standards detailed in IRC Section 408.

In contrast, third-party administrators (TPAs) are unregulated entities but can act as an intermediary or the go-between between you and your IRA custodian, so be careful not to confuse them.

The Role and Limitations of Your Self-Directed IRA Custodian

It’s crucial to understand that your self-directed IRA custodian is not liable or legally permitted to offer you investment products or advice on matters like establishing your IRA LLC, legal issues, taxes, investments, etc. As a passive third party, their role is limited because, after all, you are self directed, and you are the one in control of your self directed IRA, NOT them.

List of Self Directed IRA Custodians

Below is a curated list of self-directed IRA custodians equipped to manage your IRA’s administrative and compliance requirements without conflicts of interest. Note: A number of them support the IRA LLC structure.

Setting up your IRA LLC reduces your custodial fees, saving you hundreds, if not thousands, over the life of your IRA because all your investment transactions are handled through your LLC, not the IRA custodian.

As a result, savvy investors are turning to IRA LLCs to reduce their expenses and increase their return on investment (ROI).

Contact us if you need help finding the ideal IRA custodian to host your IRA LLC. We’d be happy to assist you! Contact us now at 866-241-9884.

Choosing The Right Custodian For Your IRA LLC!

Let Us Help You Navigate The Maze Of Custodial Options

IRA Custodian
Phone Number
Website
Community National Bank
(800) 680-0340
cnbservice.net
First Midwest Bank
(800) 322-3623
firstmidwest.com
Forge Trust
(800) 248-8447
forgetrust.com
Horizon Trust Company
(888) 205-6036
horizontrust.com
Kingdom Trust Company
(888) 753-6972
kingdomtrust.com
Liberty Trust Company
(800) 473-1977
libertytrustco.com
Madison Trust Company
(800) 721-4900
madisontrust.com
Mainstar Trust Company
(800) 521-9897
mainstartrust.com
Nevada Trust Company
(702) 696-0000
nevadatrust.com
Next Generation Trust
(888) 857-8058
nextgenerationtrust.com
Pensco Trust Company
(866) 818-4472
pensco.com
Preferred Trust Company
(888) 990-7892
preferredtrustcompany.com
Provident Trust Group
(888) 855-9856
trustprovident.com
Summit Trust
(800) 822-6711
summittrust.com

Explore Your IRA LLC Custodian Options With Our Guidance

Benefits

An IRA LLC allows you to make investments directly through the LLC rather than going through the custodian. After the LLC is set up, all transactions happen inside of it.

This gives you more flexibility, control, and privacy over your IRA investments. It also significantly reduces custodian fees over the life of the account since the custodian is not involved in each transaction.

With an IRA LLC in place, you can invest in a broader range of assets while keeping fees low. However, the IRA LLC must be properly structured to maintain the IRA tax benefits.

IRA LLC Setup Assistance

Setting up an IRA LLC can be complex due to the rules and regulations involved. There are specific steps that must be taken to ensure the IRA LLC is established and operated correctly.

Given the intricacies of IRA LLCs, it’s recommended to seek assistance from specialized companies like the one below if you plan to establish an IRA LLC. They can help navigate the setup process and avoid costly mistakes.

Investment Transactions

Custodians are required for all IRA transactions.The IRA LLC allows direct investment.

Investment Options

Custodians restrict your asset selection. The IRA LLC liberates your IRA and permits a broader array of investment alternatives.

Control and Flexibility

Your custodian oversees your IRA. The LLC enables self-direction and control.

Reduced Fees

The IRA custodian charges per IRA transaction; the IRA LLC has a one-time setup fee.

Select The Right Custodian For Your IRA LLC!

Let Help You Navigate The Maze of Options!

Custodian
Minimum Account Size
Annual Fee
Alternative Assets Allowed
Customer Service Rating
Custodian 1
$5,000
$275
All major categories
Custodian 2
$2,500
$195
Limited options
Custodian 3
$1,000
$225
All major categories
Custodian 4
$10,000
$325
Only real estate and precious metals
Custodian 5
$5,000
$150
All major categories

Notes

  • Minimum Account Size shows the minimum initial deposit required to open an account.
  • The annual fee represents total annual account administration and maintenance costs.
  • Alternative Assets Allowed summarizes the range of non-standard investment options permitted.
  • Customer service ratings vary based on third-party review sites.

We Are Here To Help!

Would you like our help determining which self-directed IRA custodian is right for your IRA LLC and your investment needs?

We’d be delighted to assist you.

Contact us now at 866-241-9884.

We can help you streamline your IRA LLC setup and guide you every step of the way.

Would You Like To Set Up Your IRA LLC? 

Download our in-house IRA LLC checklist for free to create IRA LLCs for our clients. You will also receive a sample IRA LLC operating agreement to review. 

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