A self-directed IRA might have “self” in the name, but it’s not an account you can set up and run entirely on your own. When you’re thinking about opening a self-directed IRA or rolling existing retirement funds into one, relationships matter. You’ll need to learn more about and potentially work with these critical parties: a 401(k) provider, a self-directed IRA custodian, a precious metals distributor, and an asset depository. And you’ll need to engage with people you can trust in each area.
You may want to move money from a 401(k) to a self-directed IRA in some cases. To do so, your 401(k) provider will need to help with the rollover to your self-directed IRA. Once the rollover is completed, you can put the money into alternative assets such as precious metals (gold, silver, platinum, or palladium).
Fortunately, a custodian can assist with several aspects of setting up a self-directed IRA, such as switching funds from other retirement accounts and putting them toward the acquisition of alternative assets.
Self-Directed IRA Custodian
No matter what type it is, each IRA must have a custodian (or trustee). This includes self-directed IRAs. A custodian may be a bank, credit union, trust company, or an entity that’s licensed and regulated by the IRS as a “non-bank custodian,” notes Equity Trust.
IRA custodians must follow IRS rules to hold assets owned by their clients; these requirements govern obligations like writing checks and undertaking wire transfers. Federal regulators oversee IRA custodians.
U.S. Money Reserve is not a custodian but does have relationships with trusted custodians. One of our knowledgeable IRA Account Executives can help you choose a custodian that’s right for you.
Precious Metals Distributor
If you’re looking to protect your retirement with the help of gold and silver in your IRA, you’ll work with a precious metals distributor, too. Your custodian will purchase the precious metals from the distributor on your behalf with the funds in your IRA account and arrange for delivery at a depository. (More on this next!)
You can select the precious metals company you work with, though some custodians may have preferred dealer relationships and vice versa. U.S. Money Reserve is one of the country’s largest precious metals distributors and has established relationships with companies that can help you at every stage of the self-directed IRA process.
If you open a self-directed IRA and decide to buy gold or other precious metals, you can’t put those metals in the account on your own. Instead, you must purchase the metals through a custodian. The custodian buys the gold for you and schedules delivery to a secure facility that stores the precious metals. The facility could include a vault at a financial institution, such as a bank or credit union, or an IRS-approved non-bank facility, such as a depository.
Some custodians will choose a depository for you while others will not. If you’re set on using a specific depository, be sure you’ve signed up with a custodian that will allow you to make that selection. When the decision is in your hands, don’t forget to ask about the depository’s security, insurance, and fees.
U.S. Money Reserve can help you set up and fill your self-directed IRA with the precious metals you want. Contact a knowledgeable IRA Account Executive to take the first step and work with a company that more than 550,000 clients trust.