Home » 5 Questions to Ask Your Self-Directed IRA Custodian

IRA (individual retirement account) is a particular type of account that gives one room to save money as a retirement benefit. It is not only paper assets held in the IRA accounts; instead, there are also proven precious metals that can be contained in these accounts, including gold IRA and silver IRA. One advantage of owning an IRA account is that it has a tax advantage and comes with different tax liabilities.


Opening an IRA account is easy and can be done at any Financial institution such as investment firms, credit unions, and banks. Before opening an IRA account, the first step would be for the investor to decide what type of IRA account best suits their needs. Besides, one has to ask themselves whether this will be a worthy investment in the long-run.

After securing an IRA account, it is accompanied by a crucial step of obtaining a custodian. Choosing the wrong custodian would mess up your entire investment. Custodians may comprise of trust companies, banks, or other entities that have been certified by the Internal Revenue Service (IRS). On the other hand, self-directed IRA custodian holds a variety of assets which may not be permitted by the custodians of IRA.

 Some of the essential questions to ask your self -directed custodian include;

1. Are you an administrator or Self-directed IRA Custodian?

Most investors fail to ask this question yet is very crucial. The internal revenue code stipulates that only a qualified custodian can hold all IRA accounts. Provided your self- directed custodian meets the requirement, then you are safe. At the same time, you still need to be administered by someone on your IRA. The administrators are responsible for basic reporting, marketing, and many other tasks but can only complete transaction in the presence of the custodian.

2 .How long have you been in business as a custodian?

A custodian who has been this business for long has more experience compared to those who started recently. If you want a Custodian who is stable, reliable, and competent, look for one with experience from 3 years.
Another thing to note is that there is a difference between having knowledge and experience. As much as a company has experience in this field, it has to show enough competence.

3 . How do their accounts manage?

There are various options to account management. It could be through paperwork or on an online platform or a portal. Depending on your preferences, you will be in a position to select the option that best suits you when it comes to service.

4 .When did a regulator last audit them?

An audit by an independent body , is one manner of determining whether a company is acting appropriated on its mandate. The company books may not be the only surety, but at least it will give you some sought of confidence.

5 .What are your charges and investment options?

All custodians must charge a fee as a consideration. The question is, at what rates? (for precious metal IRAs, check the comparison from Rare Metal Blog) And are they willing to be transparent about this pertinent issue? If a custodian does not want to be open about this question, then you should start looking for other options.
On the aspect of investment options, most investors go for traditional investments that entail bonds, stocks, and mutual funds. As an investor, if you desire alternative investment, then you have to look for a custodian who permits investment in other assets such as real estates, that are beyond the stock market.

In conclusion, as an investor, be very keen on the custodians you appoint because if you don’t get your facts right, you may be up for massive losses.