So what does the bank account do?
For the Self-Directed IRA, the business bank account is titled in the name of your LLC, and the LLC is connected to your IRA; the IRA is the single-member of the LLC. The bank account, or final layer of your account, hold funds and can send money via wire or ACH to different investments. Once your bank account sends money to an investment, your IRA now has partial or full ownership of that investment. Your account is structured with...
For the Self-Directed Solo 401(k), the trust is titled to your plan name via the plan documents, and the trust bank account can send funds via wire or ACH to different investments. Once your bank account sends money to an investment, your solo 401(k) now has partial or full ownership of that investment. Your account is structured with...
This gives your retirement dollars the ability to be moved into investments as simply as moving cash. Instead of the custodian investing on your behalf to just different stocks, mutual funds, and bonds, you can send out money to purchase ownership into any investment allowed by the IRS in retirement accounts. You can even send money out to a brokerage or investment account, just make sure to title it correctly to your corresponding LLC or trust.
You can send money right from your bank account. You can send a wire transfer or ACH.
No. The bank account is administered by the owner of the bank account only, as it titled in your name as the managing member of the IRA LLC or the trustee/plan administrator for the solo 401(k).
You should be the only one directing money movements in or out of your account.
Your bank account will be opened with a federally chartered partner bank, where details will be provided during your account fulfillment. This bank is also FDIC insured for cash assets but not investments except in the case of fraud, as other banks are. For more on FDIC insurance, click here.
If you have not purchased an account yet, you can discuss our partner bank or how your assets are held with our sales team at 1-855-762-5383 option 2.
To maintain a smooth customer experience, our clients will be opening accounts at our preferred banking partner. Because of the different features of self-directed retirement accounts, some of our customers have had difficulty getting accounts opened properly at a local credit union or some major brand banks. This can lead to frustration and longer time periods to service your account, or getting your account closed unexpectedly because bank's compliance department does not understand your account.
Our preferred banking partner has a specialty in serving self-directed accounts and in turn, holding your investment assets correctly inside a retirement account.
Remember, that your personal banking assets must also stay separate from your IRA or Solo-401(k)s assets.