Prior to investing with VRN using your retirement funds, please carefully read the information on this page.
Internal Revenue Code Section 408 provides you the opportunity to invest your retirement funds in "alternative" assets (or non- publicly-traded securities). Consequently, with a "self-directed IRA", investors are allowed to invest a vast array of alternative investments, including private placements, private companies, real estate, crowdfunding opportunities, managed funds, precious metals, and many other investment vehicles (read more).
As most brokerage firms do not allow alternative investments, in order to invest in such offerings using your retirement money, you must have a self-directed IRA. Here are some preliminary information you should read prior to opening a self-directed IRA account:
FUNDING YOUR ACCOUNT
There are three methods with which to fund your account. You can:
- Make a cash contribution;
- Rollover cash from a qualified retirement plan such as a 401k, 403b, 457b, defined benefit plan, profit sharing plan, etc.; and/or
- Transfer cash from another IRA
Important: We have a minimum balance requirement of $300 that must be maintained in your custodial cash account at all times. We recommend that you fund your account with at least $600 more than your intended investment amount so there are sufficient funds to cover the amount of your investment, our $300 minimum balance requirement, and any additional transaction fees you may incur. Your investment funds will not be released if you have insufficient funds in your account to cover fees and the $300 minimum balance requirement.
Please consult your tax advisor if you are eligible to make a contribution, and to determine your contribution limit. To make a contribution, please write a check made payable to “IRA Services Trust Company” and submit it with a Deposit form.
Timeline: Contribution checks are held for 5 business days per our funds hold policy.
Please consult your tax advisor and Plan Administrator if you are eligible to do a rollover. If you are, you must initiate the rollover with your Plan Administrator. A cash rollover can be done in two ways depending on how your Plan Administrator chooses to handle your request:
- Indirect Rollover in which they will send a check made payable to you. In the case of an indirect rollover, please deposit the check into your personal bank account and write a personal check made payable to “IRA Services Trust Company”. Please submit a Deposit form with your check. You may submit this form and the check with your account application, or after your account has been established.
- Direct Rollover in which they will send a check directly to IRA Services Trust Company; please submit a Deposit form once you have confirmed that your Plan Administrator will send a check directly to IRA Services Trust Company. You may submit this form with your account application, or after your account has been established.
You may also rollover funds from another IRA, however you will have to initiate the rollover process with your financial institution. If you choose to rollover IRA funds, please submit a Deposit form with the rollover check.
If you wish to rollover assets, please refer to Section B(5) of the Deposit form and follow the instructions.
Important: Please note that if a rollover is executed, your Plan Administrator and/or financial institution will issue a Form 1099R that you must report in your tax filings. In order for the funds to remain tax-free, you must send in your rollover check to IRA Services within 60 days of issuance by your Plan Administrator and/or financial institution. We will provide you with a Form 5498 to offset the Form 1099R at the beginning of the year following our receipt of your rollover funds. The year-end statement you will receive from us is a substitute Form 5498 which you may submit with your Form 1099R. For more information on tax implications, please contact your tax advisor.
Timeline: Varies depending on how long it takes your Plan Administrator to issue your rollover check or perform the re-registration if assets being rolled over. Rollover checks may be held for 3-5 business days per our funds hold policy.
To initiate an IRA-to-IRA transfer of funds from another financial institution with IRA Services Trust Company, you must complete the Account Transfer portion of the online application process. A Transfer Authorization form will be generated at the end of the application process, on which you will need to provide your original ink signature. You will need to submit your signed Transfer Authorization form with your most recent account statement from the financial institution from which you are transferring.
Mail the Transfer Authorization form and your statement (along with all other required account acknowledgment documents) to one of the addresses provided below. We will take care of contacting your financial institution to transfer your funds and/or assets.
IRA Services Trust Company
PO Box 7080, San Carlos, CA 94070
IRA Services Trust Company
1160 Industrial Rd, Suite 1, San Carlos, CA 94070
Timeline: Cash transfers can take 2-4 weeks or more and asset transfers can take 4-6 weeks or more to complete, depending on how fast your financial institution and investment provider (if transferring assets) can process the transfer and re-registration (if applicable) requests.
MAKING YOUR INVESTMENT
When you are ready to make your investment, complete an Investment Authorization form and submit it with a Subscription Agreement. Please contact VRN for assistance in obtaining the required document(s).
Timeline: Investment requests take 3-5 business days to process. Your funds will be released once your investment documents have been reviewed and approved, and your account is sufficiently funded.
Call us at 1-800-248-8447 Monday to Friday, 8 am to 5 pm Pacific Time, or send an email to firstname.lastname@example.org.
Thank you for the opportunity to be of service!
DISCLAIMER: The information contained herein does not constitute investment, legal or tax advice and should not be construed to apply to any individual person or situation. Each person should consult with his or her own personal tax advisor, financial planner, attorney or accountant with respect to such individual's specific situation and should not rely upon this information without such consultation.Self-Directed Accounts and the selection of investments and performance therein are the sole responsibility of the investor and not IRA Services Trust Company. As a passive custodian, IRA Services Trust Company does not perform due diligence on any investment selected by an investor in their Self-Directed Account. IRA Services Trust Company strongly recommends that the investor seek professional advice from appropriate legal, accounting