Self-Directed IRA in Utah or Idaho?

7 Replies

Hi - I'm looking for a bank or credit union that offers the Self-Directed IRA products and services. Looking in Utah or Idaho . . . any suggestions?

@Nicole Stoddard

Unless you have approx$50M banks won't even talk to you about self direction.  THEY WILL LET YOU SELF DIRECT WHAT THEY SELL. 

There are many SD IRA companies mentioned in the BP community. So do your research and due diligence. If you want the closest, Jon Galane, has a SD Ira company in Idaho.

Hello Nicole,

Banks and credit unions do not offer self-directed IRAs. To get one setup you need to find a custodian who specializes in self-directed accounts specifically. There are several companies out there, but you should not be looking at the location of the company, that is of the least importance, they all can help clients nationwide.

Being the fact that you are self-employed you owe it to yourself to consider truly self-directed Solo 401k plan. It has several major advantages over SD IRA, some of them are:

- Custodian is not required. This means that you can eliminate custodian all together and with it all of the custodian, transaction and asset-based fees. And also gain checkbook control over your retirement account.

- Contribute nearly 10 times more than an IRA

- Access some of your retirement funds tax-free and penalties free by using participant loan feature. 

- No tax on leveraged real estate

- Invest tax-free using Roth account of your Solo 401k

and many more!

@Nicole Stoddard

I agree with Dmitriy. If you are eligible for a Solo 401k, you may want to look into that as an alternative to a self-directed IRA with a custodian. In addition to adding many great features, the Solo 401k may actually cost you less than a self-directed IRA or IRA LLC.

Many investment institutions like Fidelity or company 401Ks (or local banks) say that they are "self-directed" but if you mention real estate they will say, "Oh, you can't do that!" You need "Qualified Custodian" and there are many out there.

My wife and I rolled over her $100K 401K to a self-directed ROTH IRA with Equity Trust in Ohio after she left full-time work several years ago. There have been some frustrations working with Equity Trust over the years (slow processing, mistakes on property descriptions, miscommunication with title companies, etc.) but overall it has been a great investing vehicle. The ROTH conversion cost us initially with some extra taxes, but the eventual withdrawals will be tax-free! We have purchased and sold several vacant lots and one condo. The value of the IRA now, after about 7 years, is about 240K - all tax-free after age 59. The fees each year depend on the size of your assets but it's between $500 and $600 now. There are also some nominal fees whenever you buy and sell an asset but its under $100 even with overnight documents and notarized signatures.

We have no regrets but if I could go back in a time machine to 7 years ago, I would tell myself to keep the funds at Fidelity in a Roth and buy Apple stock!!!  Sadly, no time machines....

I'm not going to complain about the tax-free returns we've had. It's worked out well so far!

@Nicole Stoddard

Contact Jon Galane's team at Mountain West IRA in Boise.

They are local "qualified custodians," as referenced by @Douglas Larson and I've had a good personal experience with them.

They will present a clear option for you, and they will know what Idaho banks use the kind of non-recourse loans required for self-directed IRAs where financing is in order. The interest rates on those is higher and they are rare, but they exist. 

If you're exposed to partnership deals, or have enough funds in your IRA to pay cash, those would be quality considerations.


Happy Investing!

StacyA McBain

Swope Investment Properties

@Nicole Stoddard

A good self-directed IRA provider is IRA Services Trust Company. They have been in business since 1978.

Thank you all for this valuable information. I'm super excited to get started with this vehicle. THANKS

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