SDIRA w/Checkbook control: CPA Special Advisor Fee?

Question

Hi All - I'm just starting the process of rolling a portion of an old 401k into a self directed IRA, w/checkbook control. Im still doing some due diligence on which custodian will be the best to go with.I have been told by one custodian(Pensco Trust) that I will need to have a "special Advisor" attached to my self directed IRA/LLc. My questions is does anyone know what this typically costs? Also, is this common practice across all custodians.

Thanks!

Matt

Thanks!

Matt

Matthew Orme · Answer

Thanks as well to @Carl Fischer and @Dmitriy Fomichenko!!!

Matthew Orme · Answer

@Brian Eastman Really appreciate the follow up. I will try and seek out an attorney as it sounds like this is the best place to start.

Brian Eastman · Answer

@Matthew Orme

If the IRA LLC structure is the route you wish to go, you will be better off focusing on finding the right LLC provider first instead of starting from the point of the custodian.  Custodians are very much at the back end of the structure, and some are more friendly than others to the concept.

One trick a few custodians use to dissuade folks from pursuing the LLC option is to make it sound more onerous than it needs to be.  Of course, what they are really interested in is their own fee revenue.  You definitely want to work with a custodian that offers a flat fee pricing structure for the LLC asset and not a percent of account value method.  They are doing the same relatively minimal amount of work regardless of how much capital the LLC holds.

A good self-directed plan facilitator or attorney will have one or more preferred custodians they work with, as well as tighter integration between the legal and custodial processes.

Dmitriy Fomichenko · Answer

You will need an IRA LLC Facilitator, it may be an attorney or a company specializing in setting up such structures. There are several provider firms here on BP. Contact and speak to few and ask for references.

Carl Fischer · Answer

@Matthew Orme

This is not necessarily a common practice, by "special advisor" they might mean an attorney. Your LLC will need to be set up by an attorney and prices vary by attorney. You will want to find one who know about a checkbook IRA/ LLC.