The process of setting up a self directed IRA varies depending on the type of self directed IRA you want. In addition to the type of self directed IRA account you setup, the process will also vary depending on the company you choose to work with. We have tried to outline the general process for each self directed IRA account type below:
Setting Up A Self Directed IRA Custodial Account:
- Choose the self directed IRA custodian you wish to work with (see our list of self directed IRA custodians)
- Contact the custodian and request a new account application (most larger custodians have these available on their website)
- Fill out paperwork and submit to custodian along with any applicable setup fees.
- Rollover and/or contribute funds into your new self directed IRA account
- Start investing
Setting Up A Self Directed IRA LLC Account:
- Choose the self directed IRA LLC facilitator you want to work with (see our list of self directed IRA LLC facilitators)
- The facilitator will help you establish a new IRA account with a self directed IRA custodian
- You will then need to roll over funds from your old retirement account(s) into the new self directed IRA account
- Your facilitator will establish a new LLC for you
- You will setup a bank account for the new LLC
- Your new self directed IRA (with the custodian) will then purchase the membership units of the new LLC
- The funds will then be held in the LLC bank account and ready to invest
Setting up a self directed IRA can seem intimidating, but choosing the right company to work with can help simplify things considerably. Make sure to read through our lists of self directed IRA custodians and self directed IRA LLC facilitators, and thoroughly investigate the companies which you are thinking about doing business with.