Frequently Asked Questions (FAQs)

IRA Financial specializes in self-directed retirement solutions, helping individuals take control of their retirement savings through alternative investments such as real estate, private equity, and cryptocurrencies.

Founded in 2010, IRA Financial has been in business for more than a decade and a half and now has over 24,000 clients in all 50 states who have invested over $4.0 billion in alternative assets. It was founded by Adam Bergman, a tax attorney, author of nine books on self-directed retirement plans, and one of the most recognized voices in the self-directed retirement industry. IRA Financial has over 75 employees located in 5 states and is the fastest growing provider of self-directed retirement accounts in the country.

IRA Financial offers self-directed retirement plans for individuals and small business owners including both traditional and Roth Self-Directed IRAs, Checkbook IRAs, traditional and Roth Solo 401(k) plans, SEP & SIMPLE IRAs, HSAs, Coverdell ESAs, and the ROBS structure for those who find their own business, 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.

IRA Financial is located Sioux Falls, SD.

Our address is 5109 S. Broadband Lane, Sioux Falls, SD 57108

IRA Financial does not provide investment advice. Instead, they serve as a custodian and facilitator for self-directed retirement accounts helping clients set up accounts and process transactions. While they offer educational resources and support, they do not recommend or endorse specific investments. Clients are responsible for making their own investment decisions, and those seeking personalized financial guidance should consult a registered investment adviser or financial professional.

Yes, there is a one-time setup fee for most accounts and an annual fee for ongoing compliance, record keeping, and support.

No. We believe all our clients, irrespective of account size, should get the same amazing services. Additionally, we want all our clients to become seven-figures retirement investors so we don’t believe in charging more fees because they are successful.

IRA Financial isn’t a bank in the traditional sense—it operates as a state-chartered, non-bank trust company that acts as a custodian for retirement accounts. While clients’ funds may be held in FDIC‑insured omnibus accounts through partnerships with banks like Capital One, IRA Financial itself doesn’t engage in consumer banking activities like lending, mortgages, or checking accounts.

Your funds sent to IRA Financial are held at Capital One bank. The funds are FDIC protected up to $250,000. However, once the funds are invested and sent from IRA Financial to facilitate your investment, IRA Financial is no longer in charge of those funds and you are 100% responsible for the investment.

Yes. Clients can invest in a wide range of alternative assets, including real estate, cryptocurrencies, precious metals, and private businesses, all within IRS-compliant retirement structures

Our hours of operations are Monday through Friday 8:00AM to 6:00PM central time (Note: Some departments close at 5pm central).

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.

Only if you are planning to take an in-kind distribution or are over the age of 73 and are required to take required minimum distributions (RMDs). An independent third-party should sign the valuation form.

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.

A Self-Directed IRA account with IRA Financial allows you to invest in any IRS-approved alternative investment like real estate, private placements, gold, investment funds, including cryptos for one low flat fee.

An IRAfi Crypto account will allow you to exclusively buy cryptos for the annual low fee of just $100, (plus trading fees). IRA Financial does not charge an annual custody fee based on the value of your cryptos.

No – the IRAfi Crypto platform is the only way you can buy cryptos on Bitstamp using a retirement account directly.

You can fund your IRAfi Crypto account through:

• Direct Contribution
• IRA Transfer
• Rollover of Previous Employer 401(k) Funds

Please note: You cannot fund your plan with cryptos. At the time, you may only fund your IRAfi Crypto account with cash from a retirement plan.

No! IRA Financial is unique in that we do not require a minimum deposit to start or maintain a minimum balance as long as you have a credit card on file.

• It is designed for the Novice and Intermediate trader that wants to get started without first mastering a complex trading platform.
• It has a unique profit and history tracking tool that allows users to have a clear picture of their activities and the outcomes.
• It has direct education links from each coin to popular education sites like CoinMarketCap to help users learn more about coins to invest in.
• It provides real time pricing and profit/loss trends on-screen that other popular trading platforms do not offer.

Not at this time. However, IRA Financial has been working on a multi-signature wallet solution that will follow IRS rules and the McNulty case ruling that will allow retirement account owners to hold their cryptos off the exchange on a cold wallet in which they personally hold. We are hoping this solution will be live in the near future.

No. At this time, the IRAfi Crypto platform can only be funded with cash from a retirement account. You can always sell the cryptos you hold with another company tax free and then repurchase the cryptos on the IRAfi Crypto platform.

Since retirement plans are tax-advantaged accounts, you don’t need to worry about taxes, such as capital gains, when you trade cryptos inside one. With a traditional plan, taxes are deferred until you withdraw from the plan; if you utilize a Roth, never pay taxes on qualified distributions.

Limit trading is now live on the platform! A limit order is a direction to purchase or sell a crypto at a specified price or better. This feature allows retirement account investors to better control the prices at which they trade. A limit can be placed on either a buy or sell order:

• A buy limit order will be executed only at the limit price or lower. 
• A sell limit order will be executed only at the limit price or higher.

The 1% IRAfi Crypto fee includes all Bitstamp trading fees.

IRAfi Crypto does not support all cryptocurrencies; it does support most of the major cryptocurrencies including Bitcoin, Ethereum, Litecoin, Bitcoin Cash, XRP, etc. See the full list here.

If you wish to invest in a crypto not supported by our app, you can set up a Checkbook IRA and use an exchange of your choice. You would purchase cryptos in the name of the LLC and control the entire process on your own without the need for expensive brokers.

In order to invest in other assets such as real estate and precious metals, you need to upgrade your account to a full-service Self-Directed IRA or Solo 401(k) plan. Simply log into the app, and choose which type of plan you want.

Buying cryptos through an ETF at a brokerage firm comes with drawbacks compared to purchasing directly from an exchange. ETFs incur higher ongoing fees and do not provide direct ownership of the tokens. ETFs trade only during stock market hours, unlike exchanges that operate 24/7, and may experience tracking errors or price premiums during volatile markets.

All customer funds held on Bitstamp are 100% backed and available for withdrawal at any time. Assets are held 1:1 in custody, meaning for each coin our customers hold with us, that coin is safely held with a fully licensed, qualified custodian.

All Bitstamp customers’ crypto and fiat are stored separately from corporate assets. Bitstamp never will lend or stake out your assets, crypto or fiat, without your express instruction.95% of crypto held at Bitstamp is securely stored offline in bank-grade Class III vaults. Bitstamp keeps the remaining 5% online to enable smooth and fast transactions. Additionally, our custodians hold insurance for client assets in cold wallets. Learn more.

The IRS requires taxpayers must answer the digital asset question and report all digital asset-related income when they file their 1040 return, which is filed by the individual and not the IRA, so there is a position that one who only owns cryptos via an IRA does not have to respond in the affirmative to the question on IRS Form 1040.

However, the safest approach is to answer “yes” to the question since it is unclear if it only relates to crypto ownership in one’s personal capacity.

Yes! IRA Financial will do everything to help you set up your Bitstamp account. You will have 100% control of all aspects of the account. The opening and funding of your IRAfi Crypto account is quick and easy. Plus, our dedicated team is available by phone, email, or chat to help with any questions.

Bitstamp is the oldest and most reputable cryptocurrency exchange in the industry and has been operating since 2011. Bitstamp is regulated by the New York State Department of Financial Services (NYDFS). Bitstamp uses 2FA, SSL encryption, and cold storage for most of their crypto holdings, and have a dedicated security team working around the clock to prevent and respond to security attacks.

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.

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.

A transfer is a direct, tax-free movement between like retirement accounts (IRA to IRA), while a rollover typically moves funds between different account types (401(k) to IRA) and may involve taxes or time limits if not done directly.

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.

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.

From the home page, click on “Create an Account” and you will be presented with account options. You will be able to choose from Self-Directed IRA, Checkbook IRA, and Solo 401(k).

It only takes 5-10 minutes to fill out an application. Most accounts are opened within one to three business days, depending on document turnaround.

You will need to upload the front and back of 2 IDs (e.g., driver’s license, passport, credit card, or insurance card). You will also need a current statement uploaded if you are transferring or performing a rollover from another custodian.

No. You can save at each step and return later. To continue, click on “Forms in Progress.”

Yes! When you submit an application with IRA Financial, your information is protected using multiple layers of security

You will receive detailed information by email with the next steps and timing for establishing your account.

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

Yes. Each process has an option for premium expedite (1 business day) for $200 or standard expedite (2 business days) for $75.

Our Client Support and Compliance teams provide ongoing assistance, including educational resources, investment compliance checks, and technical support.

Your IRA account number can be found under “Account Summary.”

Simply complete a Deposit Form on the platform and then send in the funds by wire or check. Remember to include your account number on the check or wire.

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.

Yes, we facilitate direct rollovers and transfers from existing IRAs, 401(k)s, 403(b)s, and other retirement accounts. Our team will guide you through the process to avoid taxes or penalties.

You will have to initiate the rollover with your former employer. You will likely be required to complete a Direct Rollover Request Form. Just remember to indicate you will be rolling over the funds directly to an IRA and include your IRA Financial account number. A rollover between retirement custodians is tax free and can be done at any time.

Yes. You are free to transfer any amount of IRA funds to IRA Financial or rollover any amount of funds from an employer pension plan.

If you wish to rollover funds from another IRA to IRA Financial, simply complete a Letter of Acceptance form on our app, along with a copy of a recent statement and we will take care of the rest. Make sure the funds you wish to rollover are in cash.

It usually takes 3-5 business days to process the Transfer Authorization form and send it to the current custodian; receiving the funds is dependent on the transferring custodian, so we recommend contacting them in regard to that.

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

We handle all IRS reporting for your Self-Directed IRA. However, you are required to report any IRA contributions made or distributions taken on your Federal Income Tax Return (1040).

In addition, if you have used a non-recourse loan or have invested your Self-Directed IRA into a business operated through an LLC or other pass-through entity, then you may be required to file IRS Form 990-T for Unrelated Business Taxable Income (UBTI).

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.

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.

Subscribe to our newsletter or follow us on social media for updates, news, and IRS compliance alerts.