TALK TO AN EXPERT 1-877-229-9763 Contact Us

An IRA is an IRA, Whether Self-Directed or Conventional

All IRA accounts are required by law to be held by a custodian.  Safeguard Advisors works with several IRA custodians in forming the IRA owned LLC structure.

The role of the custodian is to hold and report on the IRA.  The administration and reporting of the account is the same as any other IRA, and self-directed IRA custodians are regulated in the same fashion as more conventional firms.  All aspects of the IRA such as tax treatment, timelines, contribution limits, and beneficiary designations apply based on the tax code.  What makes Self-directed IRA custodians different is the necessary staff training and paperwork to document the investment of an IRA into non-traditional assets – thus providing broader investment choices.

With the Safeguard Advisors IRA LLC program, the custodian is documenting the IRA’s investment into the special purpose LLC that we will create on your behalf.  Once the IRA LLC is setup and funded, the custodian is purely in a back-end administrative role; holding the account and performing annual reporting requirements.  You will also utilize the custodian in the future for the processing of any IRA-layer transactions to add or remove capital from the structure such as IRA contributions, distributions to you, or plan-to-plan transfers and rollovers.

Secure Funding of your IRA LLC

During the establishment of your plan, our team at Safeguard Advisors will assist with the establishment and funding of your self-directed IRA account with a designated custodian.

Funds will be added to the new IRA account at your direction, via new contribution, transfer from another IRA, or rollover from a qualified employer plan such as a 401(k), pension, etc.

Funds will be received by the custodian and held in a FDIC depository account insured up to $250,000.

We will then assist you with directing the IRA account to be invested into the LLC entity we have created, and funds will be issued to the LLC checking account you have established at the institution of your choosing.  Funds are usually only held by the IRA custodian for a handful of days as this processing takes place.  Once the IRA has been invested into the LLC, the funds are entirely in your control at the LLC bank account, and will continue to be FDIC insured by that institution.  The custodian is then simply holding a small minimum cash balance in the IRA and the paperwork to reflect the IRA account’s ownership of the LLC.

Custodians We Use

Safeguard Advisors works primarily with Kingdom Trust Co. of Murray, KY.  Over the years, Kingdom has proven to be an excellent provider of custodial services, with prompt, friendly and knowledgeable service and reasonable fees.  We also support IRA Services Trust Co. of San Carlos, CA.  In order to be able to provide a high quality service to our clients, we prefer working with these few institutions where we have a solid relationship and understanding of their forms and procedures.

Safeguard Advisors, LLC has no ownership or other interest in the IRA custodian, and receives no commission or other compensation associated with your account.  The custodian is an entirely independent firm we utilize to fulfill the administrative requirements of the IRA.

Please contact your Safeguard consultant if you would like diligence information about either firm or have questions about the IRA custodial layer of services associated with the IRA LLC platform.

Summary

Safeguard is facilitating the set up of a Self Directed IRA plan on your behalf and never has access or control of your retirement funds. You, and you alone, through authorizing signatures, maintain complete control of your funds throughout a process that is deemed a non-taxable plan-to-plan transfer or rollover.