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

February 07, 2023 No Comment

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 not familiar with the differences between Self-Directed IRA and brokerage firm IRA services and fees, take a 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: The fee is assessed in relation to total account value of 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?

The fee is assessed when the IRA account is established and every year thereafter in the month prior to the opening date.

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

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

Payments can also be made online by selecting the following link:

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