Self Directed IRA accounts – Three Options for Self Direction
IRA Administrators: Full Service Self Directed IRA Investing
Self directed IRA account administrators like STC review and discuss all proposed transactions with their clients, provide guidance in structuring compliant solutions to complex transactions and make industry experts available to their clients. STC has dedicated legal and accounting professionals on its staff who are ready – at no additional cost -to answer your questions or concerns as they arise.
To get started with a Self Directed IRA account, contact an STC representative today!
Set-up Organizations: Do-It-Yourself Self Directed IRA Investing
Set-up organizations, also known as “checkbook IRAs” will create the framework for a self directed IRA account owner to use in making his/her investments. These companies do not provide the account owner with any type of support for the investments the account holder considers making; at best, they will refer the account holder to a third-party professional who will bill the account holder separately for advice.
This is a low cost do-it-yourself solution. If an investor is looking for a self directed IRA account that allows investments to be made without any review or if they want to be handed a checkbook by the self directed IRA company, then this is the solution for you. While the low cost and complete freedom of this approach may be superficially attractive, savvy investors will understand that the complexity of successful and compliant self directed IRA investing requires much more than a set of documents and a checkbook.
Custodians: Title Holders of Self Directed IRA assets
Custodians hold title to the assets of self directed IRA accounts. Only a small number of commercial banks and trust companies, however, are willing to hold title to non-traditional assets. In fact, because of the complexity of self directed IRA investing, many commercial banks and trust companies had their clients transfer their self directed IRA accounts to administrators like STC.
Typically, custodians will review the documentation for investments made by their clients’ self directed IRA accounts, but this review process is often only superficial and does not come with advice regarding alternative investment structures. Using only a Custodian for your self directed IRA account can work if you have a very simple and modest asset portfolio.