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Top 10 Frequently Asked Questions

What is Unrelated Business Taxable Income (UBTI)?
Unrelated Business Taxable Income (UBTI) occurs when a retirement account earns active business income, which is considered unrelated to the tax-exempt status of the IRA (including Roth IRAs) under federal tax law, and the income is subject to its own tax.
Taxable Event Triggers A taxable event happens if the IRA-owned investment earns income from selling goods or performing services with the intent to profit from an ongoing trade or business. Limited partnerships, limited liability companies, real estate, and other entities that carry on an unrelated business or borrow funds to finance the acquisition of property may generate taxable income. Exclusions apply, but generally, examples include:
- Interest
- Dividends
- Royalties
- Capital Gains
- Rents (if not debt-financed)
Investments that are structured as hedge funds, notes, REITs, and other private corporations that are not LLCs or LPs will not trigger UBTI.
Accountholder Responsibilities The account owner is responsible for UBTI. Typically, investors that have investments generating UBTI will have receive a Schedule K-1 which is prepared by your investment sponsor and sent directly to the investor and the IRS. A copy of the K-1 is generally not sent to your IRA custodian. To avoid IRS confusion between your IRA income and personal income, it is important to verify the K-1 document reflects the correct tax identification number. If not, work with your investment sponsor to correct the form. Part II, box E of the K-1 requires a tax identification number (TIN) of the partner, and for IRA owners the document should reflect STRATA’s TIN of 26-2637994 or the standalone IRA EIN rather than your social security number. Investors that owe UBTI will work with their tax professional to determine if IRS Form 990-T will need to be filed. As a custodian for self-directed IRAs, STRATA does not review K-1, file IRS Form 990-T, nor do we advise on or calculate UBTI. STRATA does not provide investment, legal, or tax advice. Individuals should consult with their investment, legal, or tax professionals for such services. Learn more with our Quick Guide to UBTI and UDFI.
How Do I Access My Account Online?
You may access your account at any time through our secure online account portal. If you have not registered for online account access, please complete the registration process to access your account. Find step-by-step instructions, navigation tips, and password help here.

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What are the Annual Requirements for Alternative Asset FMVs?
As your custodian, STRATA Trust Company ("STRATA") is required by federal law to obtain and report the fair market value ("FMV") of each retirement account we administer on IRS Form 5498 each year. Alternative asset values are not available through public trading exchanges. Therefore, self-directed IRA owners must generally work with their investment sponsor or issuer (“Sponsor”) to complete this valuation. Unless there are special circumstances, all FMVs must be submitted to STRATA by April 30, in order to meet the IRS Form 5498 deadline of May 31. No action is typically required from accountholders because STRATA will work directly with your investment sponsor to obtain the annual update. You action is required if:
- You are aware that the Sponsor has recently moved, please have them complete an Investment Issuer Contact Change Request form or provide STRATA with the updated contact information (address, phone, email, etc.), so we can update our records.
- There are special circumstances, the Sponsor or accountholder must notify STRATA at their earliest convenience at [email protected] and include the expected date for the FMV. Service fees may apply.
Learn more about the FMV process and timeline.
What are the Annual Requirements for Directly Owned Real Estate FMVs?
The IRS requires that all custodians obtain and report the fair market valuation (FMV), or good faith estimate of an IRA annually on Form 5498 and/or prior to a taxable event such as a distribution or Roth conversion. Alternative asset values are not available through public trading exchanges. Therefore, self-directed IRA owners must generally work with their investment provider or contract with a qualified, independent third party to complete this valuation. Annual updates are due to STRATA by April 30, in order to meet the IRS deadline of May 31. If there is an exception or special circumstance that prevents you from meeting the April 30th deadline, the accountholder must notify STRATA at their earliest convenience at [email protected] and include the expected date for your FMV. Service fees may apply.
Ready to Get Started? STRATA's Fair Market Valuation - Real Estate form includes fast, electronic form submission through ServiceNOW. Accountholders can easily complete, sign, upload supporting documentation, and securely electronically transmit your FMV update directly to STRATA. Click the form link above and a pop-up will appear—enter your email and get started today! Learn more about the directly owned real estate process and see FMV tips.
What Is Unrelated Debt-Financed Income (UDFI)?
Unrelated Debt-Financed Income (UDFI) occurs when a retirement account, such as your IRA, owns a real estate property that is debt-financed (with a non-recourse promissory note), and the property generates income. Since this is considered unrelated to the tax-exempt status of the IRA (including Roth IRAs) under federal tax law, the income is subject to its own tax. Limited partnerships, limited liability companies, real estate, and other entities that carry on an unrelated business or borrow funds to finance the acquisition of property may generate taxable income. Investments that are structured as notes, REITs, and other private corporations that are not LLCs or LPs will not trigger UDFI.

Accountholder Responsibilities The account owner is responsible for calculating UDFI and determining if the filing of IRS Form 990-T is necessary. As a custodian for self-directed IRAs, STRATA does not file IRS Form 990-T, nor do we advise on or calculate UDFI. STRATA does not provide investment, legal, or tax advice. Individuals should consult with their investment, legal, or tax professionals for such services. Learn more with our Quick Guide to UBTI and UDFI.
How Do I Take a Cash Distribution From My STRATA IRA?
For distribution requests not related to an RMD, please keep in mind that there are IRS age restrictions for making a penalty-free withdrawal. STRATA account holders are encouraged to consult with a tax professional regarding any possible tax consequences of a distribution.
Completing a Cash Distribution Request The IRA Distribution Request form is available with technology which will intuitively guide you through the process. Click the previous link or the icon on our forms page (shown below) to complete, sign, and electronically submit your form securely to STRATA. A pop-up will appear, enter your email address to get started. Click here for a step-by-step walk-through.
Connect with Client Services Ask us anything! A member of our customer support team is ready to help. Submit your question to our customer services team online here, where we will respond to your inquiry within one business day or sooner—or call us directly at 866.928.9394.

When Is the Deadline for Requesting My 2023 RMD?

To ensure your 2023 RMD is processed by the IRS deadline of December 31, 2023, your request must be received in good order by December 1, 2023. STRATA will process all requests as quickly as possible. However, we cannot guarantee any requests made after December 1 will be completed by December 31.

How Do I Satisfy My RMD When My IRA Investments Are Illiquid?

Some IRA assets are much harder to liquidate; distributing the RMD in shares of the investment may also be complicated or not possible. Despite these issues, there is no IRS exception to the RMD requirements for illiquid assets. Consider these possible solutions:

Take From One Account- RMD rules allow you to aggregate your RMDs from your IRAs and take the total amount from one account. So, if you have more than one IRA, you can calculate the RMD amount for each IRA and add them together. If you have one IRA that is illiquid, you could simply take the RMD for that account from another IRA. Remember, there are limits here. You cannot satisfy your RMD for your IRA from a workplace plan or a Roth IRA. Note: You cannot aggregate your owned IRAs with those of your spouse or with IRAs that you have inherited.
Add a Cash Contribution- If you are eligible to inject some cash into an IRA in the current tax year your RMD is due, you may use these funds to satisfy your RMD. The SECURE Act makes this possible by allowing IRA contributions at any age, but you would need to have earned income and you would be limited to $7,000.

To avoid last-minute mistakes and stiff IRS penalties, it is important to plan ahead. Talk to your financial advisor or tax attorney to understand how to fulfill your RMD requirements and what is best for your situation. Ready to get started? Click here.

What Are STRATA's Service Fees?

STRATA’s account fee schedule may vary depending on the type of investments you hold and the services you require. To learn more about STRATA’s service fees, please see our IRA Fee Schedule for more information.

Where Can I Find STRATA Forms?

STRATA forms are located on our website at https://www.stratatrust.com/resource-center/forms. Quick Forms Page Overview with Stacy Fikes

Forms are grouped by function: Account Opening and Disclosures, Account Funding and Withdrawals, Investment Purchases, and Account Management forms. Most forms have either online submission or manual submission options available.

Online submission is the quickest and most secure way to provide STRATA your information. If the option is available, a ServiceNOW icon will be displayed. Click the icon to launch the online form, where you will see a pop-up asking for your email address. If for any reason you are not able to complete the online submission in one session, your information is autosaved and you can retrieve your document by the access link provided via email.
For manual submission, simply click the PDF text link located inside the form description to launch the document, fill it in, then follow the submission instructions provided on the form.

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Connect with client services

STRATA has over 350 years of expertise in the custody of alternative assets. Ask us anything! A member of our customer support team is ready to help.

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Address:

STRATA Trust Company
7901 Woodway Drive
Waco, TX 76712

Hours of Operation:

Monday – Friday
8:00am – 5:30pm Central Time

Overnight packages and deliveries:

STRATA Trust Company
7901 Woodway Drive
Waco, TX 76712

USPS mailing of new account applications or service/processing requests:

STRATA Trust Company
PO Box 23149
Waco, TX 76702

Overnight payments and deliveries:

STRATA Trust Company
901 S. Mopac Expressway
Barton Oaks Plaza II, Suite 100
Austin, TX 78746

All payments:

STRATA Trust Company
PO Box 849
Austin, TX 78767

Pay Fees Online

ACH/Wire Instructions

Investors submit the Deposit Certification prior to funds being sent. Funds received without prior notification may cause delays in processing. Funds should be sent to STRATA IRA as shown below

Wire Instructions

Bank Name: Horizon Bank

Bank Address: 600 W. 5th St. Austin, TX 78701

ABA: 111907940

For Credit To: STRATA Trust Company, Custodial Account

Account #: 4515532

For Further Credit To: Account holder’s Name, IRA#

ACH Instructions

Bank Name: Horizon Bank

Bank Address: 600 W. 5th St. Austin, TX 78701

ABA: 111907940

For Credit To: STRATA IRA Acct # and Accountholder’s Last Name

Account #: 4515532

Account Type: Checking/DDA

If applicable, investment sponsors may email reconciliations to [email protected].

Worried about missing important payment deadlines?

Turn the payment of your IRA fees, including transaction fees, on cruise control with AutoPay. It’s an easy, hassle-free way for handling routine payments of your STRATA account fees. Enrollment is easy and only takes a few minutes.

Enroll in autopay

Expand Your IRA Tax Knowledge

Will I Owe Tax on My Self-Directed IRA Investments?

March 30, 2024 Read time: 4 Minutes

Self-directed IRAs (SDIRAs) can offer incredible benefits. With Traditional IRAs, contributions may be deductible, and investment growth is tax deferred until the assets are distributed—and with Roth IRAs, qualified distributions...

How to Report Rollovers on Your Tax Return

March 20, 2024 Read time: 5 Minutes

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2023 Self-Directed IRA Deadlines and Contribution Limits

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As the 2023 tax-filing deadline quickly approaches, it may be easy to forget to make your annual contribution to your self-directed IRA. But failing to timely contribute to your IRA...

Never Miss a Communication

Have you ever waited on an email, gotten frustrated when you couldn’t find it, just to realize that it wound up in SPAM? Whitelisting will let you directly add important addresses to your approved recipient list.

Gmail Whitelist Instructions
Gmail does not provide a quick fix for whitelisting. The best way is to add STRATA as a contact in your Gmail database. Google will send any incoming emails from your contact list directly to your inbox. You can create a contact from an existing email or create a brand new contact without having an email.
- Create a contact from an existing email:
1. If your email is in the Spam folder, move it into your Inbox. (You can do this by clicking the "x" next to Spam)

2. Find and open the email now located in your inbox. Once the email is open, click on the contact name (STRATA Trust Company). Then click More Info.

3. On the far right, you will see the contact details pop up. Click the Add Contact button.
- Create a brand new contact in Gmail:
If you not getting any emails at all, use this method to add contacts directly to your address book.

1. Log in to your Gmail account. Click on your profile icon, located on the far right of the screen

2. Click Manage your Google Account

3. Click People & Sharing

4. Click Contacts

5. Click Create Contact
Outlook Whitelist Instructions
For Outlook 20XX and Outlook 365
- Make sure the Home tab is selected (1), then click on the Junk inbox (2) and find the email you would like to whitelist
- (3) Highlight the selected email (click on the email 1x to highlight without opening it fully)
- Select Junk (4), then select Never Block Sender's Domain (@example.com)
Yahoo Whitelist Instructions
Yahoo does not guarantee messages from desired senders won't be sent to spam, but the steps below will help. Add a Contact to Yahoo Account:
1. From Yahoo Mail, select the Contacts icon
2. Select Add a new contact
3. Enter the sender’s information, including the sender's email address
4. Select Save
Unmark Email as Spam: From a Mobile Browser
1. Go to Yahoo Mail in your mobile device’s web browser
2. Tap the Sidebar menu icon
3. Tap the Spam folder
4. Select the desired email from the sender
5. Tap the Move icon
6. Tap Inbox
From a Computer
1. Go to Yahoo Mail on your computer’s web browser
2. Select the Spam folder If you don’t see the “Spam” folder, select More below the “Sent” folder
3. Open the desired email from the sender
4. Select Not Spam at the top of the page and the email will return to your Inbox
Additional Clients Whitelist Instructions

For more information about whitelisting additional email clients, you can refer to LifeWire's resource How to Whitelist Email Addresses.
Android Whitelist Instructions
Open an email from the sender you wish to whitelist, click their icon/picture, and then click "Add to Contacts."
Apple Mail Whitelist Instructions
Apple Mail doesn’t have the option to whitelist like some other email providers do. Instead, all you can do is mark something as “Not Junk” and it will be sent to your inbox. Here’s how:
1. Open your Mail app and go to the Mailboxes screen.
2. Select the Junk folder.
3. Find the email you want to whitelist and swipe left to see options.
4. Tap the More button.
5. Tap the Mark button.
6. Tap the Mark as Not Junk button.