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What are Self-Directed IRA Fees?

If you’ve read our guide, How to Make the Most of Your Self-Directed Investment: A Guide for New Investors, you know that self-directed IRAs offer investors alternative investment options for your retirement accounts.

Whether you choose to roll over funds from your 401(k) or traditional IRA, a self-directed account can allow you to make non-traditional investments, such as: precious metals, real estate, and even private business stock.

No Hidden Fees in Self-Directed IRAs

Because a self-directed IRA offers so many alternative investment options, and it is an investment strategy many don’t take advantage of, there are fees associated with starting and maintaining the account. These fees are common to all retirement accounts, but since those fees are hidden or deferred in a traditional retirement account, many account owners don’t even know (or remember) they’re paying them.

Cost to Set Up a Self-Directed IRA

In a self-directed IRA, the fees are paid up-front. While this may seem like an inconvenience now, it also means that when you go to withdraw your IRA funds during retirement, what you see is what you have to spend.

Here are a few fees you can expect to pay when setting up a self-directed IRA:

  • Account set-up or establishment fee
  • Annual account management fee
  • Fees for cashier’s check, certified mail, or overnight mail service
  • Fees for wire transfer for your deposit or investment

Costs for Maintaining a Self-Directed IRA

There are other fees you can expect to incur in a self-directed IRA, just as you would with any other account. Thankfully there are many ways to minimize costs and ensure you’re getting the best bang for your buck.

Here are a few ways you can save on a self-directed IRA:

  • Find a custodian with experience in your particular investments. For example, if you have a real estate investment, choose a custodian who has a long list of real estate referrals.
  • Shop around for custodians with lower fees. Custodians don’t always charge the same fees, so understanding what all the fees are up front will help you compare the many options available to you. If there’s a fee you don’t understand, don’t be afraid to ask questions.
  • Research the cash management options for your account. Understanding the fees associated directly with your account is the best way to know if you’re getting the best deal possible. Will there be fees for purchasing, selling, or exchanging an alternative investment? Will you have to pay to get your money out in distribution? These are questions you should be asking before you choose a self-directed IRA plan administrator.

Learn More About Self-Directed IRAs from iPlanGroup

To get a full fee schedule and to learn more about self-directed IRAs, contact the team at iPlanGroup today. We’ll walk you through all of your options and help you choose the account setup that best matches your financial goals.

From saving for retirement to ensuring your family is taken care of throughout your non-working years, a self-directed IRA can help you build the financial future you dream of. Ready to get started? Contact us now.

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