SDIRA Fees: These Seem OK?

[Paul Jamgotch]

$50 – application fee

$525 – annual administration fee ($90k-125K)

$95 – transaction fee

$30 – wire fee

I plan on funding 1-2 flip projects at a time (I'll be hands off other than visiting property before purchase). I'll be protected via 1st position and given mortgage/DOT. What are others paying? Thanks.

[Jeff S.]

For the purpose you note @Paul Jamgotch, lending, these fees are obscene. I used to have an SD IRA at IRA Services that I used to flip homes as well as lend. Here is their fee structure. I was very happy with IRA Services and recommend them highly for lending.

Ultimately, I rolled everything in this account into an SD 401k, which is really the way to go, as @Dmitriy Fomichenko noted. You might do a spreadsheet study comparing several SD IRA custodians, using your estimated annual transactions, if this is the route you want.

Some IRA custodians charge by the transaction, some by the value of your account, which you appear to be using (?), and some use a mix. All will nickel-and-dime you to death with misc. fees such as wire transfers, notaries, etc.

You will have relatively few higher dollar transactions if you are lending so you likely want a custodian that charges by the transaction. Once you down-select to a few, a more productive question here would be to ask specifically who currently uses them for lending. Good luck, Paul.

Jeff