What is a Self-Directed IRA Custodian?

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A self-directed IRA custodian can be a bank, trust company, insurance company, or any other entity that satisfies IRS stipulations outlined in the Internal Revenue Code. Whether you invest your retirement plan in stocks, mutual funds, or alternative IRA investments like real estate or precious metals, there’s an IRA custodian in the background that holds your account. Self-directed retirement puts you in the driver’s seat of your tax-advantaged investment activities, but companies like New Direction Trust Company still provide the administrative support to execute investments and maintain IRS compliance.

Who Are We?

New Direction Trust Company is a custodian for self-directed IRA accounts as well as Solo 401(k)s, health savings accounts, and Coverdell education savings accounts. IRA custodians, not the IRS, make final decisions on which assets they will allow (although the IRS has explicitly disallowed certain assets, such as collectables and life insurance policies). Some IRA companies permit self-direction but limit the assets their clients can invest in to publicly traded securities only. At New Direction Trust Company, we allow our clients to take advantage of alternative investment options in addition to stocks and mutual funds.

What Do We Do?

Per IRS regulations, all retirement accounts must remain under the umbrella of a custodial company like ours. In addition to fulfilling this mandated responsibility, New Direction Trust Company conducts required annual reporting to the IRS and documents your transactions once you’ve decided on an investment approach. Prohibited transactions can carry significant tax penalties; we are here to help you avoid these penalties by teaching our clients about IRS rules and, whenever possible, looking out for potentially prohibited transactions.

What Do We Not Do?

We do not provide financial advice or recommend any particular investment model or course of action. While New Direction Trust Company is happy to help how ever we can, due diligence belongs to you as the self-directed investor. In a nutshell, we are able to highlight what you can and can’t do, but we do not provide commentary on what you should or shouldn’t do.

We want to be part of your financial team. As such, we’re happy to work along side (with your permission) your accountant, financial advisor, or anyone else who is helping you reach your retirement goals. For more information about self-directed IRA custodians, feel free to give us a call at 877-742-1270 or send us an e-mail at info@ndtco.com.