Self-Directed IRA Custodians

[John Buchanan]

I'm in the process of selecting a SD IRA Custodian, to purchase a property worth approx $150k. Anyone have a firm they like and have had good experience with? I've looked at Pensco (who appears the most expensive) to Entrust Group, IRA Services Trust and Equity Trust.

thanks

[Brian Eastman]

@John Buchanan

There are a variety of plans available to you, not all of which are offered by IRA custodians.

A Checkbook IRA LLC would put you in control of the funds, operating out of a local bank account. This model eliminates the processing delays and per-transaction fees common of most custodians. If you work with a quality provider of such plans, you will also have access to expert guidance with regards to IRS compliance, which is something custodians are prohibited by rule from providing.

A Solo 401k plan is also a great option, if you qualify by being self employed and having no full time employees.  These plans will also typically offer checkbook control.

There is a good bit of discussion here on BP regarding various self directed plan types and the services of the major players in the industry.

Quality of services is key, whether you choose to work with a custodian or a facilitator of checkbook plans.  Be sure to speak with client references from any firm you are considering working with.

Best of luck to you as you explore your options. Investing your IRA into real estate can be a fantastic way to diversify your retirement savings.