Frequently Asked Questions (FAQs)

IRA Financial offers Self-Directed IRAs, Solo 401(k)s, SEP & SIMPLE IRAs, traditional and Roth IRAs, HSA/Coverdell accounts, Checkbook IRAs, ROBS, with full compliance and custodial support.

You can open an account online through our website or by speaking with a specialist. The process typically involves completing an application, submitting identification, and funding the account.

Yes, IRA Financial is a South Dakota state-chartered custodian under 408(a)(2) and a bank custodian defined under 408(n) referenced therein. We are regulated and licensed by the South Dakota Division of Banking. As a non-fiduciary trust company, we must meet the capitalization, compliance, anti-money laundering, consumer protection, and cybersecurity requirements as set forth by the South Dakota Division of Banking and protect the interests of our customers first and foremost.

You can contact us by phone, email, or through our website’s chat system. Our support team is available during regular business hours.

Benefits include greater investment flexibility and freedom, tax-advantaged growth, diversification, and the ability to invest in assets you know and understand.

When it comes to making investments with a self-directed IRA, the IRS generally does not tell you what you can invest in, only what you cannot invest in. Essentially, one cannot invest in life insurance, collectibles, and transactions that involve or benefit you, the IRA holder, or another “disqualified person.”

The most popular investments include real estate, precious metals, cryptocurrency, tax liens and deeds, private placements, hard money loans and so much more.

The IRA prohibited transaction rules, defined under IRS Code Section 4975, are designed to prevent self-dealing and misuse of retirement funds. They prohibit transactions between an IRA and “disqualified persons,” including the account holder, certain family members and entities they control. If a prohibited transaction occurs, the entire IRA may lose its tax-advantaged status and be treated as fully distributed, triggering income taxes and potential penalties.

Yes, you can request a rollover or transfer of existing retirement funds to your Self-Directed IRA; they can be direct (custodian to custodian) or indirect (you take control of the funds first). 

Taxes depend on the account type. Traditional IRAs are funded with pretax money, offering an immediate tax break. Taxes are deferred until the funds are distributed. Roth IRAs are funded with after-tax money. There are no upfront tax savings, however, qualified distributions are tax free in retirement.

Any self-employed person or business owner with no full-time employees besides themselves and/or their spouse.

For 2024, the contribution limit is up to $66,000, or $73,500 if age 50 or older, subject to IRS guidelines.

Yes, you can borrow up to $50,000 or 50% of your account balance, whichever is less.

Solo 401(k)s allow for alternative investments including real estate, private equity, and cryptocurrencies.

You can set up a Solo 401(k) by completing a short application and working with our specialists to tailor the plan to your needs.

Yes, IRA Financial supports crypto investments through regulated platforms and custodians.

Yes, you can invest in private companies and startups through your self-directed account.

You submit an investment authorization form and supporting documents, and we handle compliance and funding.

Typically, you’ll need an investment agreement, subscription documents, and an invoice or title for the asset.

A transfer moves funds between like accounts without touching your hands. A rollover typically involves you receiving the funds before redepositing them.

Timelines vary by custodian but generally range from 5 to 15 business days.

Yes, you can make annual contributions up to the IRS limit.

IRA Financial does not charge for incoming rollovers or transfers, but your current custodian might.

Yes, annual fees apply and depend on the services and account type.

Transaction fees may apply depending on the complexity and frequency of your investments.

Fees are billed annually and can be paid from the account or out-of-pocket.

Disqualified persons include you, your spouse, parents, children, and certain fiduciaries.

We provide documentation, reporting, and legal support to ensure your account stays compliant.

Not always. An IRA LLC gives you checkbook control, but it depends on your investment goals.

Forms like 5498, 1099-R, and others must be filed annually, and we assist with preparation and filing.

Yes, you can update your beneficiary designation form at any time.

You can contact us to discuss new strategies and submit new investment documents for approval.

You’ll need to complete a distribution or transfer request, and we’ll assist in the process.

Submit a distribution form and we’ll help process the withdrawal per IRS rules.

We work with approved custodians and exchanges that support institutional and IRA-compliant accounts.

Crypto is stored in secure, institutional-grade wallets with custodians and exchanges that specialize in compliance.

No taxes are due on trades within the account; tax treatment follows the rules of the IRA (traditional or Roth).

No, personal use of IRA-owned property is a prohibited transaction.

All expenses must be paid from the IRA, and all income must return to the IRA.

You can hire a third-party manager but cannot manage the property yourself in a way that provides compensation or direct benefit.

Yes, we offer custom retirement plan solutions for small businesses and groups.

We provide white-glove service, advanced compliance support, and tailored investment structures.

Withdrawals before age 59½ may incur a 10% penalty and ordinary income tax unless an exception applies.

Traditional IRA gains are tax-deferred; Roth IRA gains are tax-free if qualified.

Distributions are reported on IRS Form 1099-R and included on your annual tax return.

You’ll need a government-issued ID, completed application, and sometimes additional financial documents.

We guide you through setup, funding, and investment structuring with step-by-step support.

Yes, expedited processing is available upon request.

Yes, our app allows clients to monitor and manage accounts on the go.

Yes, account activity and investment tracking are available through our secure portal.

We provide access to account summaries, performance reports, and investment management tools.

Yes, we regularly host educational webinars and publish free downloadable guides.

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