Skip to content
All posts

SD-IRA Annual IRA Administration Fee – What’s Included?

Did you know that, unlike brokerage firms, Self-Directed IRA custodians are not allowed to earn a commission off the investments in your IRA? That is why Self-Directed IRA custodians charge administrative fees, like the Annual IRA Administration Fee, for their services.

If you are unfamiliar with the differences between Self-Directed IRA and brokerage firm IRA services and fees, look at our previous blog, “Fee Comparison: Self-Directed vs. Brokerage Firm IRAs.

You can open the current fee schedule for reference.

Q: What services does the Annual IRA Administration Fee pay for?

A: The Annual IRA Administration Fee includes unlimited contribution and distribution processing, daily fair market adjustments for all digital currency and precious metals assets, annual statements, state and federal tax reporting, 24/7 online account access, IRA education, and phone/email support throughout the year.

Q: How is the Annual IRA Administration Fee calculated?

A: Fees are in relation to the total account value of the IRA account, which includes the assets and cash. For example, if the IRA has $200,000 invested in private equity and has a cash balance of $15,000, the fee is $600 annually.

Q: When is the fee assessed?

A: When the account opens and every year after in the month before the opening date anniversary.

Q: Can the fee be paid with a credit card?

A: Yes, because this is an administrative fee charged for services rendered by Preferred Trust. Many clients pay this annual fee with a credit card to preserve their account balance for future investments.

Make online payments by selecting the following link: https://preferredtrustcompany.com/shop/.