Self Directed IRA Custodians

Self Directed IRA Custodians or a Self Directed IRA Trustee is required for all IRAs by law. They basically act as the middle man between an investor and their IRA account.

All Custodians must be approved by the IRS and an investor cannot be their own custodian for their own IRA plan.

So, what are some of the main functions of a custodian/trustee? Basically they are there to handle the money and be the middle man. Although the individual can decide how the money is to be invested the self directed IRA trustee must be the one to write the checks and receive the money.

They are also there to make sure that the IRA holder does not exceed the maximum contribution of the plan or does not go over the line on what they are able to do.

How To Find Self Directed IRA Custodians

Pretty much any bank or brokerage firm will be able to set one up for you. You can go down to your favorite banks/brokers and see what they offer and how their plan is different.

For your convenience here is a list of self directed ira custodians to consider when making your decision.

What to Look for in a Self Directed IRA Custodian Bank

Not all bank custodian of self directed IRAs are the same. Some may limit your options and make you wonder if you even have a Self Directed IRA. Others may charge you high fees cutting into your retirement savings.

You can avoid this by doing your own research. Don’t simply put your money into the first plan you see. It may be a pain but it will help you out a lot more if you know the answers to these three questions before investing.

1. What are the Fees?

Many retirees are starting to figure out that they should have looked more closely at the fees when they originally set up their plans. Remember the whole purpose of the plan is to grow your money. Fees kind of contradict that so make sure you find a company whose sole purpose isn’t to devour your savings alive in hidden fees.

2. What Investment Options do they have?

While a self directed IRA is suppose to give you a wide range of investment options this kind of depends on the company. Figure out exactly what they let you invest into before opening the account. It would be a shame to open up an account with someone only to find that your investment options are limited to one of their mutual funds.

3. How active are they in helping you?

This depends on what you are going to invest into. Ask about how they will help you with your specific investment. For example if you buy real estate in your account, will they collect the rent? It would be great if they did.

Wrap up of Self Directed IRA Custodians

That is basically what a self directed account trustee is and what to look for when choosing one. Now all that is left to is to get cracking. Learning about how to set up your retirement account is pointless until you start at it.

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