Custodians Self-Directed IRA Administrators Real Estate Investment Investing

Interviewing a Potential Custodian for a Self Directed IRA or Real Estate IRA

Last Updated: April 17, 2009

Especially in this day and age, entrusting the safekeeping of your finances to another involves a significant amount of trust. It is crucial to be comfortable with the custodian you choose for your self-directed real estate IRA, and also that you’ll receive the assistance you need when you need it.

Here’s a list of questions you may find useful as you interview custodians for your new self-directed or real estate IRA:

What are the fees involved in opening a self-directed IRA account?
What are the fees involved in closing a self-directed IRA account?
What types of non-traditional investments will you service in a self-directed account- are there any restrictions?
Do you charge a per-transaction fee for the different types of investments I might choose for my self-directed IRA?
What paperwork is required each time I want to perform a transaction?
How will the account be structured? (LLC, FBO, etc)
If my account is an LLC format, is there any additional charge or paperwork involved with making additional deposits to my IRA?
If I have a Traditional IRA, do you offer assistance with automatic RMDs (Required Minimum Distributions) or am I responsible for that process?
Can you advise me to ensure that the investments I want to participate in are permitted by the IRS?
Do you have online account access so I can view my balances and holdings?

When buying real estate or other special assets within a self-directed IRA, investors must choose a "custodial" firm and weigh the fees it charges. If the potential custodian can't answer any of the above questions, you probably want to choose another firm!