Please Suggest IRA Custodian for Passive Real Estate Investing
Most Popular Reply
Brett SynickyPro Member
Solo 401k and SDIRA Consultant · Orange, CA · Member since 2013 · 876 posts · 498 votesQuote from @Sam Katz:
Quote from @Brett Synicky:
@Sam Katz Can you provide a bit more info? Are you looking to roll in funds to a self directed IRA/401k that you intend to invest into a multi family offering? Is this a syndication? What makes you call it "shadow" and just a "line item"?
With a self directed account you as the owner are the fiduciary of the plan so your job is to invest the plan's money (it's not your money) wisely. I'm not sure what you're describing is a wise investment. "No yearly income is expected, but future returns are hopeful".
What exactly are you trying to do?
Brett,
Thanks for your note. My apologies for the confusion. I currently have two Limited Partnership investments that Bank Regulators at a Banks Trust department that I have other assets with, are instructing those two LP's to be moved to another Custodian. I don't want to pay a lot in fees for these two Line Item investments that must be custodied somewhere. As I mentioned, there is no income on a yearly basis, and I'M hopeful for a lump sum payment to be paid in the future to this IRA, i.e. for each line item LP. Do you know of a Custodian that will do this for my IRA, without charging significant custody fees? TY again, Sam
Thank you for the clarification. It sounds like you’re attempting to move a personal asset into a retirement account. Because you’re a disqualified person that would trigger a prohibited transaction and the penalty for that is hefty. Typically disqualification of the entire plan. Don’t do this. I don’t know of a custodian that will do what you’re asking even if it is legitimate. Google SDIRA custodians and call around.
5 Replies
- 1yBrett SynickyPro MemberSolo 401k and SDIRA Consultant · Orange, CA · Member since 2013 · 876 posts · 498 votes
@Sam Katz Can you provide a bit more info? Are you looking to roll in funds to a self directed IRA/401k that you intend to invest into a multi family offering? Is this a syndication? What makes you call it "shadow" and just a "line item"?
With a self directed account you as the owner are the fiduciary of the plan so your job is to invest the plan's money (it's not your money) wisely. I'm not sure what you're describing is a wise investment. "No yearly income is expected, but future returns are hopeful".
What exactly are you trying to do?
Quote from @Brett Synicky:
@Sam Katz Can you provide a bit more info? Are you looking to roll in funds to a self directed IRA/401k that you intend to invest into a multi family offering? Is this a syndication? What makes you call it "shadow" and just a "line item"?
With a self directed account you as the owner are the fiduciary of the plan so your job is to invest the plan's money (it's not your money) wisely. I'm not sure what you're describing is a wise investment. "No yearly income is expected, but future returns are hopeful".
What exactly are you trying to do?
Brett,
Thanks for your note. My apologies for the confusion. I currently have two Limited Partnership investments that Bank Regulators at a Banks Trust department that I have other assets with, are instructing those two LP's to be moved to another Custodian. I don't want to pay a lot in fees for these two Line Item investments that must be custodied somewhere. As I mentioned, there is no income on a yearly basis, and I'M hopeful for a lump sum payment to be paid in the future to this IRA, i.e. for each line item LP. Do you know of a Custodian that will do this for my IRA, without charging significant custody fees? TY again, Sam
- 1yBrett SynickyPro MemberSolo 401k and SDIRA Consultant · Orange, CA · Member since 2013 · 876 posts · 498 votes
Quote from @Sam Katz:
Quote from @Brett Synicky:
@Sam Katz Can you provide a bit more info? Are you looking to roll in funds to a self directed IRA/401k that you intend to invest into a multi family offering? Is this a syndication? What makes you call it "shadow" and just a "line item"?
With a self directed account you as the owner are the fiduciary of the plan so your job is to invest the plan's money (it's not your money) wisely. I'm not sure what you're describing is a wise investment. "No yearly income is expected, but future returns are hopeful".
What exactly are you trying to do?
Brett,
Thanks for your note. My apologies for the confusion. I currently have two Limited Partnership investments that Bank Regulators at a Banks Trust department that I have other assets with, are instructing those two LP's to be moved to another Custodian. I don't want to pay a lot in fees for these two Line Item investments that must be custodied somewhere. As I mentioned, there is no income on a yearly basis, and I'M hopeful for a lump sum payment to be paid in the future to this IRA, i.e. for each line item LP. Do you know of a Custodian that will do this for my IRA, without charging significant custody fees? TY again, Sam
Thank you for the clarification. It sounds like you’re attempting to move a personal asset into a retirement account. Because you’re a disqualified person that would trigger a prohibited transaction and the penalty for that is hefty. Typically disqualification of the entire plan. Don’t do this. I don’t know of a custodian that will do what you’re asking even if it is legitimate. Google SDIRA custodians and call around.
- Attorney · Las Vegas, NV · Member since 2025 · 69 posts · 91 votes1y
Hi Sam,
I usually direct my clients to IRA Club (https://www.iraclub.com/). A little more explanation on the investment you're looking at getting into would be helpful. IRA Club can assist with a number of alternative investments.*This is not a direct referral, nor do I receive any compensation for my recommendation
- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes1y
we have worked with many, including IRA club who is great. But each custodian can fit a very different criteria depending on what your goals and assets are. I am not sure what you're trying to accomplish with a shadow asset so I would call them directly to see if they can assist
7e investments53 Reviews
Join the conversationCreate a free account to reply, vote on answers and follow this thread.