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What is a self-directed IRA?
A self-directed IRA is a retirement account that puts you in control of your IRA investment. Unlike most retirement accounts whose investments are chosen by an account and/or fund manager, you choose what to invest in with a self-directed IRA. This allows you to diversify your retirement portfolio’s investment and potentially maximize returns.
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Are investments in a self-directed IRA insured?
The cash held in your STRATA custodial account is FDIC-insured up to $250,000, but any other investments held by your IRA are not FDIC-insured, are not guaranteed by STRATA and may lose value.
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Are self-directed IRAs a target for potential fraud?
While self-directed IRAs can be a safe way to invest retirement funds, investors should be mindful of potential fraudulent schemes when considering a self-directed IRA. Investors should understand that the custodians and trustees of self-directed IRAs may have limited duties to investors and that the custodians and trustees for these accounts will generally not evaluate the quality or legitimacy of an investment and its promoters. As with every investment, investors should undertake their own evaluation of the merits of a proposal and should check with regulators about the background and history of an investment and its promoters before making a decision. Learn more about how to protect yourself from fraud.
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Are self-directed IRAs reported to the IRS?
Yes. As with any IRA custodian, STRATA is required to file Form 5498 with the IRS each year as well as Form 1099R (if applicable).
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Can I have a self-directed IRA if I participate in a retirement plan at work?
You can have a Traditional or Roth IRA whether or not you participate in another retirement plan through your employer or business. However, you might not be able to deduct all of your Traditional IRA contributions if you or your spouse participates in another retirement plan at work. Roth IRA contributions might be limited if your income exceeds a certain level.
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Does STRATA offer any investment products or investment advice?
As an IRA custodian, STRATA does not sell investment products or provide investment advice. Custodians do not provide investment, tax or legal advice, so clients needing these services are urged to contact their professional advisor.
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How do I direct an investment within my IRA?
Due to the diverse nature of investments, we offer several convenient investment checklists to help you gather the information necessary to direct your investment. Please visit our Investment Options Page to access the investment checklist that fits your needs.
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What types of investments are permitted within my STRATA IRA?
STRATA allows you to diversify your self-directed IRA with investments such as real estate, precious metals, crowdfunding, trust deeds, brokerage accounts, private equity and much more. Learn more about your investment options at https://www.stratatrust.com/self-directed-iras/investment-options/.
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What types of investments are not permitted?
Prohibited IRA investments include collectibles like artwork, coins (except for certain U.S. coins and bullion), stamps, rugs, antiques, beverages, S-corp stock, gemstones and metals (except for certain U.S. coins and bullion) and insurance contracts. If you have a question about a particular investment, please contact us.
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Are there any types of property that STRATA will not hold?
Yes. STRATA will not process certain investments including, but not limited to, timeshares, foreign real estate or property purchased through an auction or tax sale.
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Can my IRA purchase a portion of a property along with other investors?
Yes, but only if the other owners are not disqualified persons. The deed must also specify the undivided interest owned by each party.
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Do I need to provide STRATA with a property appraisal?
After the initial purchase you will be required to provide either an updated appraisal or our Real Estate Valuation Form completed by an appraiser, broker or realtor on an annual basis. In addition, a new appraisal will be required for any taxable event such as an in-kind distribution of the property or Roth IRA conversions.
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Can my IRA use leverage to finance a real estate purchase?
Yes, an IRA-owned property may be debt-financed, but only with a non-recourse note. The property must be the only collateral for the loan, and all payments must be made from your IRA. You cannot guarantee the loan personally or make payments on the loan out of pocket. In addition, debt-financed property in an IRA may be subject to unrelated business taxable income (UBTI). For more information, please consult your tax advisor.
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Does rental income have to be deposited in my IRA?
Yes. All rental income must return to your IRA. STRATA requires you to appoint an unrelated third party to act as the property manager for income-producing property. The property management agreement will be provided by the property manager and will be signed by you and the property manager. Your third-party property manager may also pay expenses from rents received if STRATA is provided with a monthly or quarterly report of income received and expenses paid. The report should accompany the property manager’s deposit check (if any).
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Can I pay the earnest money deposit out-of-pocket to secure the contract for my IRA?
No. The earnest money deposit must be funded by your STRATA account. You cannot use personal money for the deposit and then be reimbursed later. You will need to send a copy of the contract or purchase agreement to STRATA along with an Earnest Money Deposit Authorization to remit the earnest money from your IRA to the title company or closing attorney.
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Does STRATA provide any management services with regards to the property?
No. You must appoint a property manager to handle all property servicing functions, and you are responsible for monitoring the performance of the property manager. Please refer to STRATA’s Investment Checklist for Real Estate.
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Can I use the property held within my IRA?
Neither you nor any other disqualified person can have any personal use or benefit of the property while it is held in your retirement account. The property must be purchased for investment purposes only.
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Can my account invest in real estate through a Limited Partnership or Limited Liability Company?
Yes. If real estate is being acquired through an entity such as an LP or LLC and your IRA will hold an equity interest in the entity, please refer to and provide the items shown on STRATA’s Investment Checklist for Private Equity. If your IRA will be originating a loan that will be secured by a mortgage or deed of trust, please refer to and provide the items on STRATA’s Investment Checklist for Private Debt.
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How are expenses and/or improvements handled for real estate held in my IRA?
All earnest money deposits, insurance premiums, taxes, debt payments or other expenses of the property (including any improvements) must be paid by the IRA to an unrelated third party. A copy of the invoice or tax notice must be provided to STRATA along with a completed and signed Expense Payment Form. You may not pay for an expense out-of-pocket or on a credit card and remit the statement for payment. STRATA will not process payments to a credit card issuer.
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Do I need to carry liability insurance on property held in my IRA?
If you choose to carry liability insurance on the property, the named insured must be STRATA Trust Company Custodian FBO (Account holder name) IRA (Account #), and the annual premium must be paid directly to the insurance company by your IRA. You cannot add the IRA property to your personal homeowner’s policy or list your IRA as an additional insured.
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How do I report income and expenses in an IRA?
An IRA-owned property may be rented or leased, as long as the rental income flows back to the IRA. Property that is rented or leased requires a third-party property manager which cannot be the IRA owner. Also, keep in mind that your IRA will need to retain enough uninvested cash to cover all expenses such as property taxes, improvements and even the earnest deposit.
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How is title held on property in an IRA?
The property must be held in the name of STRATA Trust Company Custodian FBO (Account holder Name) IRA (Account #). This is how the purchase contract, title commitment/insurance, deed and liability insurance must be titled.
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If I decide I want to use the property in my IRA, how do I take possession of the property?
You may withdraw the property from your account as an in-kind distribution (at the current market value) and pay any taxes and/or possible penalties if you are under age 59½. You will need to provide STRATA with a completed and signed Distribution Form and a deed prepared for STRATA’s signature that conveys the title of the property from your IRA to you individually. You will also need to provide either an updated appraisal or our Real Estate Valuation Form completed by an appraiser, broker or realtor.
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May I purchase foreclosure property with my IRA?
Only if the property has already been foreclosed upon and you can provide all the items on STRATA's Investment Checklist for Real Estate. However, STRATA will not process a foreclosure purchase directly through an auction or tax sale.
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May I sell property that I currently own to my IRA?
No. Property that you or a disqualified person has ever owned is not eligible to be purchased by your IRA since this would be a prohibited transaction.
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What is a prohibited transaction?
In general, Internal Revenue Code Section 4975 defines a prohibited transaction as a transaction between a plan (your account) and a disqualified person. Generally, "disqualified persons" are defined to be the account holder, other fiduciaries, certain family members (lineal descendants and spouses of lineal descendants) and businesses under the account holder’s (or disqualified person’s) control. The prohibited transaction rules prohibit an IRA from acquiring a piece of property which will be purchased from or used personally by the account holder or other disqualified persons.
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What is the process to sell property within my IRA?
Please refer to our Real Estate Sales Checklist for complete information on selling property owned by your IRA.
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What types of property can I purchase with my IRA?
You may purchase vacant lots, raw land and income-producing property such as rental houses, condominiums or commercial real estate.
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When I sell the property in my IRA, can the IRA seller finance the transaction?
Yes. Once the property is sold, you may carry the note and deed of trust/mortgage within your account. The principal and interest payments will be deposited into your STRATA account, and you can reinvest the cash however you choose. Please see STRATA’s Investment Checklist for Private Debt.
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Who should be listed as the buyer on the real estate contract?
The contract or purchase agreement must list STRATA Trust Company Custodian FBO (Account holder name) IRA (Account #) as the buyer. You (or other disqualified persons) cannot be listed as the buyer and then later assign the contract to your IRA.
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Are there any types of investments that STRATA will not process?
STRATA will not process investments including, but not limited to, single-member entities, family-owned entities (owned 50% or more by family members), foreign entities, joint ventures and/or oil and gas working interests. Please contact us prior to establishing your account to be sure your private equity investment is something STRATA can process.
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Can my STRATA account invest in an entity that I or a family member owns or controls?
If your IRA invests in an entity that you or certain family members own or control (whether controlled individually or as an officer of a corporate general partner), the transaction could be a prohibited transaction under Internal Revenue Code Section 4975. If you or another disqualified person is an officer or director of an entity (or an officer or director of a corporate general partner, managing member, etc.), and you will collectively own 10% or more of the entity, STRATA Trust Company will require you to obtain a legal opinion from a tax attorney addressed to you in which the transaction is discussed in detail prior to processing your investment instructions. If you or any family member or disqualified persons collectively will own 50% or more of the entity, STRATA will not process the investment even if you are able to obtain a legal opinion.
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What is a prohibited transaction?
Internal Revenue Code Section 4975 defines a prohibited transaction as a transaction between a plan (your account) and a disqualified person. In general, "disqualified persons" are defined to be the account holder, other fiduciaries, certain family members (lineal descendants and spouses of lineal descendants) and businesses under the account holder’s (or disqualified person’s) control. Please review the Code for specific information and definitions. Other useful resources are Publications 560 and 590.
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What is the maximum ownership interest that a STRATA account can own in an entity in conjunction with other disqualified persons or family members?
STRATA will not process an investment where 50% or more of the entity will be owned by your STRATA account and other disqualified persons (including family members).
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What is Unrelated Business Taxable Income?
Limited partnerships, limited liability companies and other entities that carry on an unrelated business or borrow funds to finance the acquisition of property may generate unrelated business taxable income (UBTI). UBTI is generally reported on Schedule K-1 issued by the entity. If the UBTI attributable to your account exceeds $1,000 for any taxable year, IRS Form 990-T must be filed along with the appropriate amount of tax, payable from your account. STRATA does not monitor UBTI and does not prepare Form 990-T. If the tax is applicable, you must prepare, or have prepared, Form 990-T and forward it to STRATA along with an Expense Payment Form to pay the tax from your account. If you are required to file Form 990-T, you must apply for and utilize an Employer Identification Number (“EIN”). You may not use STRATA’s EIN or your Social Security number. For more information on UBTI, please refer to IRS Publication 598 and/or consult with your tax advisor.
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What types of private equity investments can I hold within my account?
Types of private equity investments that STRATA will process include limited partnerships (LPs), limited liability companies (LLCs), C-corporation stock and real estate investment trusts (REITs).
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Are there any types of debt investments that STRATA will not process?
STRATA does not process unsecured loans to individuals or loans secured by vehicle titles, foreign real estate and/or personal property. If you are uncertain whether STRATA can process the type of debt you have in mind, please contact us first.
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Does there need to be a servicing agent to monitor the collection and terms of the debt instrument?
Yes. As a directed custodian, STRATA does not provide these services and requires the account holder to either enter into a Debt Servicer Agreement with a third party or to act as his/her own agent. Please review the debt checklist for complete details and requirements.
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Can my account loan funds to family members or to an entity that I or a family member owns or controls?
If your IRA loans funds to certain family members (lineal descendants and spouses of lineal descendants) or an entity that you or certain family members own or control (whether controlled individually or as an officer of a corporate general partner, managing member, etc.), the transaction could possibly be a prohibited transaction under Internal Revenue Code Section 4975. STRATA’s policy on this issue is that if you or another disqualified person is an officer or director of the borrowing entity (or an officer or director of a corporate general partner, managing member, etc.), and you will collectively own 10% or more of the entity, then you will need to obtain a legal opinion from an ERISA or tax attorney addressed to you in which the loan transaction is discussed in detail prior to STRATA processing your investment instructions. If you, any family member or disqualified persons collectively will own 50% or more of the borrowing entity, STRATA will not process the investment even if you are able to obtain a legal opinion.
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How should payments be sent to STRATA?
Payments from the borrower or servicing agent should be sent to STRATA along with a completed Deposit Certification. If a payoff is being wired to STRATA, the borrower or servicing agent should provide a copy of the Deposit Coupon via email or fax.
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What do I need to provide to STRATA when a secured loan is paid off or sold?
You will need to provide STRATA with a request for reconveyance, satisfaction of mortgage, assignment, transfer of lien, etc., along with a letter of instruction for STRATA to sign the instrument and send all original loan documents to the title company or agent handling the payoff or sale.
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What happens if the borrower defaults on a deed of trust/mortgage held by my account?
You may direct your servicing agent to initiate foreclosure proceedings. Please review STRATA’s Real Estate Processing Checklist for the items you will need to provide in order for your account to hold title to any property acquired through a foreclosure.
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What types of debt investments can I hold within my account?
Types of private debt investments that STRATA will process include, but are not limited to, notes secured by deeds of trust/mortgages/security agreements, crowdfunding debt offerings and convertible notes.
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Can my IRA participate in crowdfunding investments?
Yes. You may direct your IRA to invest through crowdfunding portals to participate in a wide range of investment options including real estate, private equity, venture capital and more.
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How can I learn more about crowdfunding?
An Investor Bulletin published by the SEC provides specific details and investor education about crowdfunding.
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How do I direct a crowdfunding investment through my IRA?
You should first contact the crowdfunding portal to ensure they will accept investments from a self-directed IRA. If so, the crowdfunding portal will need to provide STRATA with certain investment documentation to be sure our systems and procedures are operationally compatible. Then, provide STRATA with the proper investment authorization documents to send funds from your IRA to the crowdfunding portal.
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If an investment through the crowdfunding portal offers a reward (T-shirts, music, products, etc.), can I personally receive the reward if my IRA is the investor?
No. You should not receive any personal benefit as a result of an investment made by your IRA or it will be considered a prohibited transaction under IRC Section 4975.
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What is crowdfunding?
Crowdfunding generally refers to a financing method in which money is raised through soliciting relatively small individual investments or contributions from a large number of people.
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Can I direct my IRA to invest in a futures account?
Yes. Your IRA can establish a trading account through a futures commission merchant (“FCM”) where you or your broker can place trades in commodities, futures, and forex. Please refer to our Futures Investment Checklist for more details.
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Can I trade my own futures account, or does it need to be a managed account?
You may either trade your own account, or you may designate a broker or other third-party to trade futures on behalf of your STRATA account.
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Can I use personal funds in my futures account if there is a shortfall or margin call?
No. If your futures account requires additional funding, the funds must be sent directly from your STRATA cash account. If your STRATA account does not have sufficient funds, then you will need to transfer funds from another IRA or Qualified plan to STRATA, or you may make your IRA contribution directly to STRATA (if eligible). Then you can direct STRATA to send funds directly to your futures account.
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Can my STRATA account participate in a commodity pool?
Yes. Please refer to our Private Equity Investment Checklist for more details of directing an investment into a commodity pool.
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Where can I learn more about commodities and futures investing?
You may find helpful resources by visiting the websites of the US Commodity Futures Trading Commission (www.cftc.gov) and the National Futures Association (www.nfa.futures.org).
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Can I pay for my Precious Metals shipment in advance and ship on a scheduled day at my request?
Unfortunately no, to prevent any delays or issues with your shipment payment is required when you are ready for delivery.
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Does STRATA buy, sell or exchange Precious Metals?
No, STRATA does not buy, sell or exchange precious metals. You will need to negotiate the purchase, sale or exchange of any precious metals through the broker of your choice.
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What research should I do before I choose a Precious Metals dealer?
We encourage you to do your own research and educate yourself before choosing a dealer and buying precious metals with your IRA funds. Few states have regulatory oversight of precious metal dealers. Therefore, it's important that you do your own due diligence to protect your retirement savings.
- Use sites such as the Better Business Bureau (www.BBB.org) to find whether the dealer is accredited and rated, how long the dealer has been in business, and review the dealer's history of any consumer complaints or disputes. Be aware of any dealer that you can't find any information about.
- Check to see if the dealer is a member of any industry trade groups such as American Numismatic Association (ANA), Professional Numismatics Guild (PNG), and Industry Council for Tangible Assets (ICTA). To be a member, dealers must agree to abide by a code of conduct and be willing to resolve customer disputes.
- Be aware of dealers that use high-pressure sales tactics in their sales calls to try to get you to do business with them - and don't reveal any personal information about your income, your age or your assets, including how much you may have in savings or retirement accounts.
- Read the recent Precious Metal Fraud Advisory issued by the U.S. Commodity Futures Trading Association, and view the CFTC's consumer protection video on Precious Metals Fraud.
- Be familiar with the different pricing terms (spot, bid and ask) and understand what they mean.
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How do I open a Precious Metals IRA account?
Step 1: Open an account. ● To open an IRA, visit our Open an Account page or download the IRA kit on our Forms page for the type of IRA you wish to open (Traditional, Roth, SEP or SIMPLE IRA). ● Complete the forms and submit them either electronically or by U.S. mail and include your payment of IRA Fees and the Precious Metals Storage Fee. You may pay by check or credit card. If by credit card, please complete our Credit Card Charge Form. If payment is not included, the fees will be deducted from the transfer, rollover or contribution funds prior to STRATA processing the purchase. Note: The depository storage fee is an annual fee due at the time the storage account is opened and annually in conjunction with your IRA renewal fee. Both fees will be billed by STRATA at the time the IRA is opened and each year afterward during the anniversary month of the IRA account opening. Fees will not be prorated. Step 2: Fund your IRA with a rollover, transfer or contribution. IRA Transfer ● The IRA can be funded through an IRA to IRA transfer. Simply complete the Transfer Request Form included in the IRA Kit. ● Mail the completed and signed IRA Transfer Request Form to STRATA Trust Company 7901 Woodway Drive, Suite 200 Waco, TX 76712. 401(k) Rollover ● A direct rollover from a 401(k) or other qualified retirement plan is another way to fund your self-directed IRA. Contact the plan administrator to obtain the form(s) needed to request or authorize a direct rollover. IRA Contribution ● If eligible, you can make an annual IRA contribution to fund your Precious Metals IRA. See our IRA Annual Limits chart.Learn more about rollovers, transfers and contributions. Step 3: Once funds are available in your IRA, choose a precious metals dealer and place your trade. ● You determine the precious metals dealer you wish to use, and you will negotiate the precious metals to be purchased and place your precious metals buy order directly with the dealer. Step 4: Authorize STRATA Trust Company to remit payment for your purchase. ● To authorize, simply sign and date the dealer's precious metals order ticket or complete and sign our Precious Metals Investment Direction Form and submit with the order ticket. The order ticket must be itemized to show the type, quantity and price of the precious metals purchased. ● Fax it to STRATA at 512-495-9554. ● Upon receipt, STRATA will remit payment to the precious metals dealer and provide the dealer with instructions for delivery of the precious metals to the depository.
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What types of Precious Metals can I invest in?
To qualify as IRA allowable precious metals and be accepted by STRATA, the following minimum fineness requirements must be met:
- Gold must be 99.5% pure, silver must be 99.9% pure, and platinum and palladium must both be 99.95% pure.
- Bars, rounds and coins must be produced by a refiner, assayer or manufacturer that is accredited/certified by NYMEX, COMEX, NYSE/Liffe, LME, LBMA, LPPM, TOCOM, ISO 9000, or national government mint and meeting minimum fineness requirements.
- Proof coins must be encapsulated in complete, original mint packaging, in excellent condition, and include the certificate of authenticity.
- Small bullion bars (other than 400-ounce gold, 100-ounce gold, 1000-ounce silver; 50-ounce platinum and 100-ounce palladium bars) must be manufactured to exact weight specifications.
- Non-proof (bullion) coins must be in brilliant uncirculated condition and free from damage.
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Are there any Precious Metals that cannot be held in an IRA?
Precious metals which do not meet the following requirements do not qualify as IRA allowable precious metals and will not be accepted by STRATA:
- Must be ISO certified and mint marked.
- Gold must be 99.5% pure, silver must be 99.9% pure, and platinum and palladium must both be 99.95% pure.
- Bars, rounds and coins must be produced by a refiner, assayer or manufacturer that is accredited/certified by NYMEX, COMEX, NYSE/Liffe, LME, LBMA, LPPM, TOCOM, ISO 9000, or national government mint and meeting minimum fineness requirements.
- Proof coins must be encapsulated in complete, original mint packaging, in excellent condition, and include the certificate of authenticity.
- Small bullion bars (other than 400-ounce gold, 100-ounce gold, 1000-ounce silver; 50-ounce platinum and 100-ounce palladium bars) must be manufactured to exact weight specifications.
- Non-proof (bullion) coins must be in brilliant uncirculated condition and free from damage.
Any rare or collectible coin Chilean Peso Hungarian Korona Austrian Corona and Ducat Columbian Peso Italian Lira Belgian Franc Dutch Guilder Mexican Peso and Onza British Brittania (pre-2013) French Franc South African Krugerrand British Sovereign German Mark Swiss Franc Silvertowne -
Does STRATA offer a home storage option for Precious Metals?
No. Per IRS guidelines, IRA-owned assets must remain in the custody of the IRA custodian (STRATA) until distributed or sold. This means that you can’t personally hold IRA-owned precious metals while in the IRA. STRATA requires that your precious metals be stored with a third-party depository as outlined above.
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Where are my STRATA IRA-owned Precious Metals stored?
In compliance with IRS rules, you may not hold precious metals yourself while owned in an IRA. Your IRA-owned Precious Metals will remain in the custody of STRATA, and placed with STRATA’s preferred depository (Delaware Depository) for storage and safekeeping. For existing customers of Brink’s Global Service, you may elect to add metals to your existing account by connecting with Service@STRATATrust.com.
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Can I take possession of my Precious Metals after investing?
As required by law, you may not take possession of or control your Precious Metals while held in your STRATA IRA. You may, however, take an “in-kind” distribution of precious metals from the IRA at any time. The distribution is a taxable event, which means it will be reported to the IRS and may also be subject to withdrawal penalties. As always, consult your tax professional regarding these matters prior to taking any action. To take an in-kind distribution of all or part of your Precious Metals, complete our IRA Distribution Request for Precious Metals form, available on our Forms menu.
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When taking possession of my Precious Metals, is a physical signature required for delivery?
No. Due to Covid-19, most delivery couriers no longer require a signature for delivery. This means the package may be left at your door without you signing for it. It is important that you are available for your scheduled delivery. If you will not be available, you should contact the delivery courier directly to arrange delivery at a more convenient time.
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How do I authorize a buy, sell or exchange order for Precious Metals?
You will place your buy, sell or exchange order for Precious Metals with the dealer of your choice. Once your transaction has been initiated with your dealer, you will need to complete and submit STRATA's Precious Metals Investment Direction and Disclosures form as directed. This form is available in our Forms menu.
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Why does my STRATA account statement show a value of my Precious Metals that is less than what I invested?
The fair market value shown on your STRATA account statement and on our online Account Access portal is based on spot value, which is the current spot price multiplied by the ounces of fine metal contained in the coin or bar. Spot values do not include any mark-ups, mark-downs, premiums or commissions. The actual precious metals type and quantity of a transaction may affect the price received for any given bullion item. Spot values should be used as an indication of value only and should not be construed as a firm bid price to buy by any broker or dealer. Please call your dealer for real-time pricing or information regarding their fees or commissions.
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Can I direct my IRA to invest in structured settlements or secondary market annuities?
Yes. You may direct your IRA to purchase structured settlements or payment streams from secondary market annuities. Please refer to our Investment Checklist for Structured Settlements for more details.
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Can I receive the structured settlement payments directly, or should payments be deposited to my IRA?
Since your IRA purchased the structured settlement and is the registered owner, all payments must be deposited to your IRA to maintain its tax-deferred or tax-exempt status.
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If I have a question regarding the structured settlement payments, who should I contact?
You will either need to contact the firm that sold the structured settlement to your IRA, or you may need to contact the insurance company directly.
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What are structured settlement investments?
A structured settlement is a tool utilized in the resolution of personal, physical injury claims. In certain circumstances the annuity owner may then sell all or a portion of his/her future income stream for a lump sum payment.
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Can I direct my IRA to invest in publicly-offered investments?
Yes. STRATA will process the purchase of publicly-offered investments such as public, non-traded REITs or BDCs, public LPs or public LLCs. Please refer to our Investment Checklist for Public Investments for more details.
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Can I hold stocks, bonds, mutual funds or ETFs in my IRA?
Yes, but only if you direct the purchase through a trading account with a brokerage firm of your choice. Please contact us for more information on establishing a trading account since STRATA does not directly hold tradable securities.
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What brokerage firm should I use for trading securities?
You may choose any brokerage firm that will allow a third-party custodian to hold title to the account. Not all brokerage firms permit this, so please check with your broker prior to instructing STRATA to establish an account to trade securities.
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How do I establish a recurring ACH contribution in order to fund my STRATA IRA?
You may request a recurring ACH contribution from your personal bank account by completing the ACH Contribution Authorization Agreement.
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How do I fund my account via an IRA Contribution?
You may remit a wire, ACH or check directly to STRATA when making an IRA contribution. Please be sure to submit our Deposit Certification form at the time of deposit to ensure funds are deposited correctly. The deadline for making your prior year's contribution aligns with the tax filing deadline for that same year. If no tax year is selected, then the default is the current year.
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How do I fund my STRATA IRA?
The most common methods of funding a self-directed IRA are by direct transfer, direct rollover or an IRA contribution. You may even use a combination of these options.
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How do I open an account with STRATA?
STRATA offers two account opening options: Option 1: Download and complete our IRA Account Kit for a Traditional, Roth or SEP IRA Option 2: Submit your application through our secure online account opening portal
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How do I transfer/roll over assets into my STRATA IRA?
If you plan to fund your IRA via direct transfer or direct rollover, you will need to complete our IRA Transfer/Direct Rollover Request Form. Certain information regarding your current custodian is required to complete this form. If you plan to fund your IRA via an indirect rollover, please contact your current account custodian for instructions. Also, please be aware that rollovers are subject to certain IRS rules that limit your ability to roll over funds from an IRA over a 12-month period. Once the funds have been distributed to an individual, he or she must roll them into another qualified account within 60 days. Please be sure to submit your Deposit Certification at the time of deposit to ensure funds are deposited correctly.
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How long does the transfer/rollover process take?
STRATA will initiate your transfer request within two business days of receiving your instructions. Please be aware that the processing time frames vary from custodian to custodian. Cash-only transfer requests are usually processed within 3-5 business days. However, in-kind asset transfer requests may require additional processing time. The asset(s) must go through an administrative review process by STRATA, and additional documentation from you and/or the investment sponsor may be required.
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How do I register for online account access?
To register for online account access, you must complete the self-enrollment process. First, you will need to access our secure online account portal. At the login screen, click on the “Register” link. Please enter the last 4 digits of your SSN, date of birth, and email address of record, then click “Continue”. After the information has been submitted, an email containing a registration code will be sent to the email address associated with your user profile. Enter the registration code provided to continue. Next, you will be directed to the “Register” screen to complete the self-enrollment process. Please enter the following information:
- UserName – Must contain 6-20 characters and include a combination of alphanumeric and underscore, hyphen, or dot characters.
- Password – Must contain 8- 20 characters and include a combination of letters, numbers, and symbol(s).
- Repeat Password – Re-enter the password.
- Security Question – Select your security question.
- Answer - Enter your answer to the security question.
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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. You may also review our Online Account User Guide for additional assistance. If you are unable to access your account after registration, please contact our Client Services team at 866.928.9394.
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What happens if I cannot remember my password?
Log in to your account through our secure online account portal. Choose whether you are using a Private or Public machine. Click the “Forgot Password” link located within the Password section of the log-on page. You are then directed to the Reset Password screen, where you will enter your Username and click “Continue” to proceed. Next, please answer your user profile security question and click “Reset Password” to proceed. After the request has been submitted, an email containing a temporary password will be sent to the email address associated with your user profile. Return to the log-on page, select Private or Public machine, and enter your Username. Next, please copy and paste the temporary password or manually enter the temporary password and select “Log On” to continue. Follow the instructions to enter your current password and your new password and click “Save Changes” to submit your password change request. After the change has been submitted, an email confirming the password change will be sent to the email address associated with your user profile. If you are unable to reset your online user profile password, please contact our Client Services team at 866.928.9394.
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How do I change my password?
Log in to your account through our secure online account portal. Click the down arrow on the User Profile icon, located on the top-right corner of the welcome screen. Select “Go to My Profile”, then click on the “Change Password” button located at the bottom of your profile screen. Follow the instructions to enter your current password and your new password and click “Save Changes” to submit your password change request. After the change has been submitted, an email confirming the password change will be sent to the email address associated with your user profile. If you are unable to change your online user profile password, please contact our Client Services team at 866.928.9394.
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Can I give my financial advisor or a family member access to my account?
Yes. You may add an account representative or interested party to your account by completing either the Account Representative Designation Request Form or Interested Party Designation Request Form.
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How do I add or change a Power of Attorney designation to my account?
Please download the Power of Attorney Designation Form. Once you complete and sign the form, please it via email (Operations@StrataTrust.com), fax (512-495-9554) or mail (PO Box 23149, Waco, TX 76702).
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How do I add or change the beneficiary designations on my account?
Please download the IRA Beneficiary Designation Request Form. Once you complete and sign the form, please return it via email (Operations@StrataTrust.com), fax (512-495-9554) or mail (PO Box 23149, Waco, TX 76702).
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How do I update my contact information?
Please download the Address Change Request Form. Once you complete and sign the form, please return it via email (Operations@StrataTrust.com), fax (512-495-9554) or mail (PO Box 23149, Waco, TX 76702).
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Where can I find my quarterly account statements and/or tax forms?
You may view and download copies of your quarterly account statements and tax forms when you log in to your account. Simply click on the Statements and Documents tab to access your documents.
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Where can I locate my STRATA account number?
You can find your account number by logging in to your STRATA account. Your account number can also be found on your quarterly statement.
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Who can I contact for questions regarding my IRA?
You may contact our Client Service Team at 866-928-9394 with any questions.
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Why do I pay an annual account fee to STRATA?
STRATA assesses an annual fee as the acting custodian on the account. Our custodial duties include:
- the recording of contributions, transfers, and rollovers to the account,
- the accounting for your investment(s),
- issuing quarterly statements,
- filing the required IRS reports, and
- facilitating your investment, distribution, and other service requests.
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When is my annual account fee due?
Annual fees are due at the time your account is opened and annually thereafter on the anniversary of the account opening date. You will receive an invoice from STRATA according to the communication preference you selected at the time your account was opened. You may change your communication preference with STRATA at any time by completing and submitting our Communications Preference Request form to STRATA.
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Why do I pay an annual Storage Fee to STRATA?
An annual storage fee is required for the safekeeping of your precious metals by the third-party depository that you designated at the time you directed STRATA to purchase your precious metals.
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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.
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How are my annual account fees calculated?
The annual account fees are generally based on the account type and asset holdings. Please be aware that your cash balance is considered an account asset and is included in the account value total.
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How may I pay my annual account fees to STRATA?
Payment may be made to STRATA by mailing a check, or you may use our secure fee payment feature to pay online by credit or debit card on our website, https://www.stratatrust.com/payfees/.
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For real estate FMV, can I provide a tax appraisal statement for the property?
Unfortunately, STRATA cannot accept tax appraisal values since they are not always indicative of the actual value of a property. Tax values can vary widely from the market value, so the values from an appraisal or a broker’s price opinion provide more accurate values for our required reporting to the IRS each year. While other unregulated third-party administrators might accept tax appraisal values, STRATA is a regulated trust company and does not accept them.
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What if I believe an investment is worthless or out of business?
STRATA will need supporting documentation to change a value to zero. Examples of this include:
- A third-party appraisal
- A written explanation from the entity signed by an officer or managing member
- Documentation from a court-appointed receiver regarding the value
- Bankruptcy paperwork (Chapter 7 only)
- Articles of dissolution filed with the state
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How can I provide general updates to STRATA regarding investments held within my IRA?
General information, including investment contact information, must be sent to us via a signed letter on the investment sponsor's letterhead. The request should be submitted to InvestmentUpdates@StrataTrust.com. The updated information will be processed within 3 business days.
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How can I provide valuation updates to STRATA regarding investments held within my IRA?
Updates to investment values should be submitted using our FMV forms (links below) or the updates must be submitted to us on the investment sponsor's letterhead and must be signed and dated by an authorized party. Please be sure to include supporting documentation that confirms the change in value. The request should be submitted to InvestmentUpdates@StrataTrust.com. If in good order, the update will be made within 3 business days. If clarification is needed, our Investment Updates team will contact the investment sponsor for more information. FMV forms:
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What happens if the value of my asset has changed by 50% or more?
If there is a 50% or greater change in value, STRATA Trust will require clarification. Our Investment Updates team will contact you for further information.
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Why is the fair market value (FMV) required on my account?
The FMV of each IRA account is required to be reported on IRS Form 5498 annually. IRS Form 5498 provides information to the IRS about contributions made to the IRA along with the Fair Market Value (FMV) of the IRA Plan.
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What happens if the FMV is not received by the deadline?
If the FMV is not received by the deadline, we may assess a late fee of $50 and your IRA may be closed and distributed for noncompliance with IRS reporting requirements. We will make every attempt possible to work with you to avoid these actions.
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Which documents will STRATA Trust not accept for FMVs, or change in asset values, including zero valued assets?
The following documents do not meet state/federal reporting requirements for updating investment values:
- Tax documents such as K-1s, and property tax documentation.
- Statements from the investment that are not registered as “STRATA Trust FBO Clients name”
- Emailed requests. STRATA Trust requires a physical signature for any fair market valuation updates.
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Is there a timeline for the FMV process?
Yes, please see our timeline below:
- 2/1/2022 – STRATA will mail a Request for Fair Market Value Letter to the investment sponsor, or client if for real estate holding, to provide an updated FMV of the investment as of December 31, 2021. Please return the letter to STRATA as soon as possible and not later than May 15th. If you are aware that the FMV will not be available until after May 15th, please notify STRATA in writing of the expected date it will be available so we can suspend notifications until that date.
- 4/1/2022 – STRATA will mail a second reminder to the investment sponsor, or client if real estate holding, if the FMV has not already been provided (and STRATA has not been notified that the FMV will not be available until after May 15th). We will also mail a notice to our account holder(s) as a reminder that FMVs are due by May 15th.
- 5/2/2022 – STRATA will mail a final reminder to the account holder(s) that FMVs are due by May 15th if the FMV has not been provided yet. This letter will remind the account holder of the Late FMV Fee, $50, as well as a notice of resignation that would be effective 9/1/2022 if the FMV is not received.
- 6/1/2022 – A Late FMV Fee of $50 will be assessed to the account holder(s). STRATA will also attempt to contact investment sponsors and/or account holders by email or phone to follow up on the late FMV.
- 9/1/2022 – If the FMV has not been provided by this date, STRATA will resign as custodian for the account and distribute the asset in-kind to the account holder. This will be considered a taxable event, and penalties and additional taxes could be incurred. Please be sure to provide the FMV to ensure that STRATA will not resign as the IRA custodian. ** If the investment company has recently moved, please be sure to provide STRATA with their updated contact information (address, phone, email, etc.).
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When will I receive my IRS Form 5498 from STRATA?
STRATA will file IRS Form 5498 with the IRS and make a copy of your form available to you (either online or paper, based on your communication preference) on or before May 31 (IRS Notice 2021-21).
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Do I need to attach IRS Form 5498 to my tax return?
IRS Form 5498 is for informational purposes only. You are not required to file it with your tax return; however, you may want to provide a copy to your tax preparer.
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Why am I receiving my 2021 IRS Form 5498 now?
This allows STRATA time to record any 2021 contributions, rollovers, conversions, or recharacterizations made to your IRA up to the April 18, 2021, tax-filing deadline (IRS Notice 2021-21).
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What happens if I transfer or rollover an IRA from another firm to STRATA?
If you did a Direct Transfer between trustees (the formal name for financial providers), as STRATA recommends, you shouldn’t receive IRS Form 1099-R from the previous trustee. To put it simply, if you didn’t get a check, then you won’t get a tax form. If you did a rollover, in which you received a check from the previous trustee and sent the money to STRATA within 60 days, you should receive IRS Form 1099-R from the previous trustee, and you should receive IRS Form 5498 from STRATA. If you waited longer than 60 days, you will need to contact your tax advisor to determine if you qualify for the 60-day waiver or to discuss other options.
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What forms will I receive if I rolled over a 401(k), 403(b) or other workplace savings plan to an IRA?
Look for IRS Form 1099-R from your 401(k) or 403(b) plan provider. This is the form the IRS requires employer-sponsored retirement plans to use to report direct rollovers. Just because you receive IRS Form 1099-R does not mean that you owe tax on the amount. In the case of a direct rollover, you will also receive IRS Form 5498 from STRATA. It notifies the IRS that you rolled over that amount into an IRA, which means your money will remain untaxed until you withdraw it.
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I made an excess contribution to my IRA, which I then removed. Why does my IRS Form 5498 reflect the full contribution amount?
We are required to report the original contribution on IRS Form 5498, even though it was later removed as an excess contribution. The excess removal will be reported to you and the IRS on Form 1099-R for the year it was removed.
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I recharacterized a Traditional IRA contribution to a Roth IRA contribution. Why does IRS Form 5498 still report the original contribution?
We are required to report the original IRA contribution on IRS Form 5498, even though it was recharacterized to your Roth IRA. IRS Form 1099-R reports the amount being removed from your Traditional IRA, and IRS Form 5498 reports the amount recharacterized into your Roth IRA.
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What if I don’t receive IRS Form 5498 from STRATA?
If you made an IRA contribution, rollover, conversion or recharacterization for a given tax year, STRATA will file IRS Form 5498 to report it. A copy of your form will be made available to you either online or paper, based on your communications preference.
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How can I get a duplicate IRS Form 5498?
You may view and download your STRATA account tax forms online. Go to www.StrataTrust.com, click the Account Access button, then follow the steps to login. Tax forms can be accessed in the Reports tab. You may also contact our Client Services team at Service@StrataTrust.com, or call 866-928-9394 during business hours (Monday – Friday, 8:00am – 5:30pm Central Time).
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Useful reference information:
- IRS Publication 560, Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans)
- IRS Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs)
- IRS Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs)
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Questions about your IRS Form 5498?
Contact our Client Service team at Service@StrataTrust.com, or call 866-928-9394 during business hours (Monday – Friday, 8:00am – 5:30pm Central Time).
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Why did I receive IRS Form 1099-R?
IRS Form 1099-R is issued when a reportable event has taken place within your IRA. You will want to provide a copy of the form to your tax preparer when filing your taxes.
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When will I receive my IRS Form 1099-R from STRATA?
If a reportable event has taken place within your IRA, then we will make a copy of your form available to you (either online or paper, based on your communication preference) on or before January, 31.
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How can I get a duplicate IRS Form 1099-R?
You may view and download your STRATA account tax forms online 24-7. Click the Account Access button on STRATA's website, then follow the steps to log in. Tax forms can be accessed in the Reports tab. You may also contact our Client Services team at Service@StrataTrust.com, or call 866-985-7156 during business hours (Monday – Friday, 8:00 am – 5:30 pm Central Time).
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Want to know more about IRS Form 1099-R?
Learn more about IRS Form 1099-R with the IRS or through the STRATA Insights blog post Tax Form Focus: IRS Form 1099-R.
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Questions about your IRS Form 1099-R?
Contact our Client Service team at Services@StrataTrust.com or call 866-985-7156 during business hours (Monday – Friday, 8:00 am - 5:30 pm Central Time).
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Useful reference information:
- IRS Publication 560, Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans)
- IRS Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs)
- IRS Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs)
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How do I request a recharacterization of funds?
Please download the IRA Recharacterization Request Form. Once you complete and sign the form, please return it via email (Operations@StrataTrust.com), fax (512-495-9554) or mail (PO Box 23149, Waco, TX 76702). Please consult with your tax professional regarding any possible tax consequences. Please keep in mind that any Roth Conversions processed after January 1, 2018 are permanent and cannot be recharacterized.
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What is a required minimum distribution?
A required minimum distribution (RMD) is the minimum amount that the IRS requires you to withdraw from your IRA each year, usually after you turn 72 (or 70½ if you turned 70½ on or before December 31, 2019). The exact amount will vary from year to year based on certain factors.
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Are self-directed IRAs subject to RMDs?
RMDs apply to Traditional, SEP and SIMPLE IRAs, whether they are self-directed or not. Roth IRAs (self-directed or otherwise) do not require RMDs until the death of the owner.
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When should I begin taking RMDs from my self-directed IRA?
In most cases you are required to take your first RMD by April 1 of the year following the year you turn 72 (or 70½ if you turned 70½ on or before December 31, 2019). After that, each yearly RMD must be taken by December 31. For example, if you turn 72 in 2021, you’ll need to take your first RMD by April 1, 2022, and your next RMD by December 31, 2022.
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What withdrawal options are available when taking my RMD via cash?
You may take your RMD in one lump sum, quarterly, or monthly. Regardless of the funding method, please be sure to take your RMD amount by the IRS deadline of December 31st. We recommend having the completed IRA Distribution Request Form to STRATA by December 1st to ensure your request can be processed by the IRS deadline.
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How is my RMD calculated?
Your RMD is based on your account balance as of December 31 of the year that precedes the year you are taking the distribution. That number is then divided by the amount indicated in the IRS’s Uniform Lifetime Table. Our handy RMD Calculator can help you determine your RMD.
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Will STRATA calculate my RMD for me?
Yes. STRATA provides an estimated RMD calculation for the accounts you hold with us by January 31 each year. As a courtesy, we provide RMD reminders throughout the year as well. We strongly encourage our account holders to act early.
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Will STRATA automatically distribute my RMD to me?
Unfortunately, we are unable to process any distributions without express written consent from the account holder. However, satisfying your RMD requirement can be accomplished by simply completing our IRA Distribution Request Form. Fees may be associated with your request. You may refer to our STRATA IRA Fee Schedule for more information.
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What if my IRA account cash balance is insufficient to cover the RMD amount?
If you don’t have enough cash to cover the RMD in one IRA, then your options are as follows: 1. Take the total RMD amount from a different IRA account and leave your STRATA IRA intact. 2. Liquidate assets in order to make the distribution. 3. Take the distribution in-kind.
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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 for illiquid assets to the RMD requirements. Consider these possible solutions: 1- Take from One Account - RMD rules allow you to aggregate your RMDs from your IRAs and take the total amount from one account. 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. 2- 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. In order 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.
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What if I have more than one IRA with STRATA or other firms?
An IRA owner must calculate the RMD separately for each IRA that he or she owns, but the owner has the option to withdraw the total amount from one or more of the IRAs.
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How are RMDs treated for tax purposes?
For most IRA accounts, distributions are treated as taxable income. For Roth IRAs, distributions are generally tax-free. You should consult with your tax professional regarding any possible tax consequences.
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What happens if I fail to take my RMD?
If you fail to take your RMD or if you take less than the minimum amount, you may be subject to a 50% excise tax on the amount not distributed. For example, if your RMD is $3,000 and you only take out $1,500, you may be required to pay excise tax in the amount of $750 — or half of the amount that was not distributed.
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Will I receive notification for an RMD on an inherited IRA?
No. Custodians are not required to send RMD notifications on inherited IRAs. For more information, please see Section 3 of IRS Notice 2002-27.
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How are RMDs handled after the account owner has passed away?
For the year of the account owner's death, and if the RMD was not taken prior to death, the RMD must be taken out of the IRA using the IRA Distribution Form (links below). For the year following the account owner's death, the RMD must be taken, and the amount will be based upon the designated beneficiary or trust. Please note, STRATA Trust does not handle calculations for beneficiaries or trust. IRA Distribution Instructions and Forms:
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What fees are associated with taking my RMD?
Service fees may be incurred when you take your RMD. These fees are not included in the gross distribution amount you request. Please access our STRATA IRA Fee Schedule for the applicable fees that your account may incur for your distribution request.
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How do I request a complete distribution of my IRA account?
Please complete the appropriate IRA Distribution Request Form (links below). The form provides STRATA instructions for the assets you are requesting (assets include cash and all other holdings which contribute to the overall account value). You should consult with your tax professional regarding any possible tax consequences of your distribution request. Please see our STRATA IRA Fee Schedule to determine the fees associated with this request.
- Mark "Complete" in Section 3 of the Form
IRA Distribution Form Links:
- Cash and/or Non-Precious Metals Distributions IRA Distribution Request Form
- Precious Metals Distribution- IRA Distribution Request - Precious Metals Only Form
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How do I request a partial distribution of my IRA account?
Please complete the appropriate IRA Distribution Request Form (links below). The form provides STRATA instructions for the assets you are requesting (assets include cash and all other holdings which contribute to the overall account value). You should consult with your tax professional regarding any possible tax consequences of your distribution request. Please see our STRATA IRA Fee Schedule to determine the fees associated with this request.
- Mark "Partial" in Section 3 of the Form
IRA Distribution Form Links:
- Cash and/or Non-Precious Metals Distributions IRA Distribution Request Form
- Precious Metals Distribution- IRA Distribution Request - Precious Metals Only Form
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How do I establish a recurring cash distribution from my STRATA IRA?
You may request a recurring distribution from your IRA by completing the IRA Distribution Request Form.
- Select Option 2 "Partial Recurring Distribution by ACH Transfer", then specify the frequency and amount.
- Please note, this option is not available for Precious Metal assets.
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Can I establish a recurring distribution of Precious Metals within my STRATA IRA?
Unfortunately, a recurring (monthly or quarterly) distribution of Precious Metals may not be set up within the IRA. You must complete the IRA Distribution Request - Precious Metals Only Form each time you would like to take an in-kind distribution of Precious Metals.
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How do I request a conversion to my Roth IRA?
Please download the Roth Conversion Request Form. Once you complete and sign the form, please return it via email (Operations@StrataTrust.com), fax (512-495-9554) or mail (PO Box 23149, Waco, TX 76702). Please consult with your tax professional regarding any possible tax consequences. Beginning in tax year 2018, partial or full conversions can no longer be recharacterized. Roth conversions are permanent, so please contact your tax professional with any questions regarding possible tax consequences of your Conversion.
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How long does it take to receive my requested cash distribution?
The delivery time for a cash distribution is generally 2-5 business days. This time frame is based upon the delivery method you select when completing the form. Please be aware that sufficient cash must be available to process this request. If the distribution is dependent upon liquidations, then you will need to liquidate those holdings in order for us to process your request.
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How long does it take to receive my requested In-Kind distribution?
- For non-Precious Metal assets - the delivery time for an In-Kind distribution request is generally 3-10 business days. This time frame may vary based upon the delivery method you selected and the asset type that is being distributed.
- For Precious Metal assets - once STRATA has the completed distribution form, we will instruct the depository to move the metals from your IRA depository to your personal account. Expect up to 5 business days for Delaware Depository Services "DDSC".
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What is the reported value of my In-Kind Precious Metals based upon?
The reported values are based on the spot value of the account on the day the Precious Metals leave the STRATA IRA. Please see our Precious Metals Investment Disclosure regarding spot prices. Spot values should be used as an indication of value only and should not be construed as a firm bid price to buy by any broker or dealer.
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Will I be penalized for taking a distribution prior to reaching age 59½?
Possibly. An early withdrawal penalty of 10% applies on all pre-tax withdrawals from retirement accounts when the distribution is taken before the account owner reaches age 59 ½. However, there are some exceptions to the 10% penalty. Please see IRS Publication 598 for more information on distribution exceptions.
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Will I be penalized for taking a distribution on or after reaching age 59½?
No. You may take a distribution from your IRA on or after reaching age 59 ½ without facing an early withdrawal penalty.
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I recently took an In-Kind distribution of Precious Metals from my STRATA IRA and need to roll them back into the IRA, how is this handled?
If Precious Metals need to be rolled back into your IRA, the exact Precious Metals distributed must be returned to the STRATA IRA to complete the rollover process. Please contact our Precious Metals team at PreciousMetals@StrataTrust.com for instructions on completing this rollover request.
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How do I contact Delaware Depository Services Company ("DDSC") for information on establishing a personal depository account with them or have general questions regarding the process?
If you would like to establish a personal account with the Delaware Depository or have general questions with DDSC, please visit their website at Delaware Depository Resources. You may also contact them via email at ddsops@delawaredepository.com or via phone at 302.765.3889.
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What if I have Precious Metals at DDSC and I need to take an in-kind distribution?
STRATA will comply with your IRA Distribution Request for Precious Metals Held at Delaware Depository form by sharing the details of your distribution instructions with the depository. Delaware Depository will then move the material from your STRATA Trust IRA account to a personal account and then work with you directly to either store the material in a personal storage account within their facility, ship the material to you, transfer it out, or provide you with access to pick it up in person.
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What should I know if I elect to establish a personal depository account with DDSC?
Here are a few things you should know if you elect a personal depository account with DDSC:
- Establishing a personal account with DDSC can take up to 5 days to process.
- Once your personal account is established with DDSC, the account is ready to receive metals from your STRATA IRA.
- You will receive a 1099-R from STRATA Trust for any precious metals distributed out of the IRA storage account and placed in your personal storage account.
- You may access information on your personal depository account with DDSC at any time by contacting them directly at 302.765.886 or by logging on to their online portal.
- DDSC will invoice you semi-annually for storage fees due on the personal depository account. If you elect non-segregated storage, the minimum charge is $25 per billing. If you elect segregated storage, the minimum charge is $50.00 per billing. Please contact DDSC for additional information regarding the fees associated with this personal depository account.
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Will I receive any notification from DDSC after I complete my IRA Distribution Request for Precious Metals?
STRATA will process your distribution- request and will instruct the depository to move the metals for your STRATA IRA to a personal account. DDSC should process this request within 2-3 business days. Delaware Depository will then mail you a letter to the address of record, you should receive this in up to 10 days following, this will provide you options to store your metals, transfer, or ship your metals to you.
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How do I get a tracking number from DDSC for shipments?
Unfortunately, DDSC does not supply tracking numbers directly to customers. To receive a tracking number, you will need to provide your email address on the distribution request, and you will receive an email with the tracking number. The estimated delivery date from the shipping carrier and the COD amount will be in the email.
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Will I be able to liquidate, once my Precious Metals are stored in my personal account with DDSC and what would be the processing time?
Delaware Depository does not buy or sell metals. You will need to connect with your precious metals dealer to handle the liquidation. Once DDSC receives the liquidation instructions, the confirmed internal transfers are done within 24-48 hours and if metals must be shipped to the dealer, there is up to 3 business days to process out the shipment.
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What will happen to my funds once my Precious Metals are liquidated out of my personal DDSC account?
Once your metals have been liquidated with the dealer, the dealer will work directly with you to get you the funds from the liquidation.
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If I elect to ship my Precious Metals after they are moved to my personal account with DDSC, what options would I have?
If you decide to ship your metals to your address of record, after the movement to your personal account with DDSC then your options are:
- If taken within the first 30 days, there will be admin, shipping, and handling fees.
- If taken after the 30 days of the personal account movement, you would incur storage fees (based on if you have a segregated or nonsegregated account) and an insurance fee based on your average spot price value.
- If you decide to take all your metals and close out the personal account with DDSC, there is no termination fee.
- Once instructions are received for shipment from you, DDSC will then contact you to get the confirmation of the shipment via phone. Once this is done, it will ship in 1-3 business days.
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How do I request a partial transfer of my IRA account to a successor custodian?
Transfers are initiated by the receiving custodian. Please complete the successor custodian’s transfer request form. The completed form must include clear asset delivery instructions, the account holder’s signature and a letter of acceptance signed by an authorized signer of the successor custodian firm. The form may be submitted to us via fax, email or mail. Please see our IRA Fee Schedule to determine the fees associated with this request.
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How do I request a transfer of my entire IRA account to a successor custodian?
Transfers are initiated by the receiving custodian. STRATA requires a copy of the successor custodian’s transfer request form. The completed form must include clear asset delivery instructions, the account holder’s signature and a letter of acceptance signed by an authorized signer of the successor custodian firm. The form may be submitted to us via fax, email or mail. Please see our IRA Fee Schedule to determine the fees associated with this request.
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How do I close my account with STRATA?
There are two options to close your account: 1. You may elect to transfer your account to a successor custodian. 2. You may take a complete distribution of your IRA account. Contact us for more information regarding account termination.
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Security Policy
While the Internet is generally not a secure environment and no one can guarantee absolute security, we strive to provide our clients with a level of comfort about the security of the information they store and transmit through our website. Protecting your personal information is of vital importance to STRATA Trust. It is our goal that all information submitted, and transactions completed through this Website are confidential and secure. To read our full security policy, visit our Security Policy page.
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Business Continuity
We maintain a comprehensive data recovery plan, including business continuity services and daily backup of data at a secure offsite facility. Strict policies are maintained to ensure the security of our clients’ records.
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Client Information Privacy
As a regulated financial institution, it is our policy not to disclose, either directly or indirectly, any personal information about our clients to third parties without the prior written consent of the client, except for our legitimate business purposes and in compliance with all applicable laws and regulations. In addition, we do not provide account or personal information to outside companies that conduct independent telemarketing or direct mail marketing.
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Professional Liability Insurance
Through Horizon Bank, we maintain a comprehensive insurance package, including financial institution bond policy, banker’s professional liability insurance and directors and officers’ liability insurance through underwriters rated A+ (excellent) by A.M. Best.
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Regulatory and Audit Controls
As a subsidiary of Horizon Bank, we are regulated by the Texas Department of Banking, which conducts regular examinations of our operation. In addition, we are audited regularly by independent auditing firms for IRA compliance.
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Uninvested Cash
Funds received into an account are deposited into an interest-bearing account with our parent company, Horizon Bank, or other financial institutions selected by us where balances are FDIC-insured up to $250,000 per account holder. Aside from this FDIC coverage on uninvested funds, there is no protection provided for investments held in our IRA accounts unless specifically provided by the investment.
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What is a Direct Transfer?
A direct transfer is the movement of IRA funds or assets directly from one IRA custodian to another. Through a direct transfer, the IRA owner never takes possession of their retirement funds or assets. The main advantage of a direct transfer is that there is no tax liability or IRS reporting with the distribution. This is because funds are transferred from one institution to another. In most cases a direct transfer is a simpler option as it avoids having to comply with the 60 day rule and the possibility of incurring taxes and penalties.
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How do I initiate a Direct Transfer?
It’s easy to request a direct transfer for your IRA funds or assets.
- If you don't already have an account with us, you’ll need to open an account and set up an IRA. Go to our Get Started section to open an IRA using our Online Account Opening feature or download the IRA account forms.
- If you’re an existing account holder, simply download our IRA Transfer Request Form.
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How long does a Direct Transfer take?
A direct transfer usually takes about 10-14 days. This time frame may be reduced if you request overnight delivery, wire transfer of cash or make arrangements with your resigning IRA custodian to process via fax.
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What else should I know about a Direct Transfer?
It’s important to remember when transferring assets in-kind (other than cash), the assets must be something that STRATA Trust Company will accept and hold. If the asset(s) to be transferred is property (directly-owned) or a private equity or private debt investment, please refer to the appropriate Investment Checklist and Form for that investment type. Direct transfers of publicly traded stocks, bonds and mutual funds require a brokerage account with any clearing firm or discount brokerage.
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What is a Rollover?
An IRA rollover is the movement of funds between two qualified retirement plans, such as from a 401(k) plan to an IRA, or from one IRA to another IRA. Rollovers may be subject to federal income tax unless all requirements are met (completed within 60 days and the same property is rolled over). Rollovers typically occur when you change jobs or retire and can take 2-6 weeks to complete. Rollover rules, which became effective in 2015, now limit each taxpayer to one IRA rollover during a 12-month period. Rollovers usually take place by one of these two methods: Indirect Rollover or Direct Rollover Consult your tax professional or contact us for assistance to make sure you understand and follow the rules.
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What is the difference between a Direct and Indirect Rollover?
A direct rollover is when you roll over from a qualified retirement plan and your plan administrator makes the rollover check payable to your IRA custodian, in which case it may be mailed either to you or to your custodian. By choosing a direct rollover, you can avoid the normal 20% federal withholding requirement for taxes. An indirect rollover is when your plan administrator makes the rollover check payable to you for deposit into your own personal account. With an indirect rollover, it is then up to you to redeposit the funds into the new IRA within the allowed 60-day period to avoid penalty. Also, an indirect rollover requires that your plan administrator withhold 20% for federal withholding taxes — and you must rollover the additional 20% withholding out of pocket. If you do not make up the difference of the withheld amount, the IRS will consider it a distribution and will tax it as income. The amount may also be subject to an additional premature penalty tax if you are under age 59½.
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Why consider a Direct Rollover from a 401(k) or other employer-sponsored retirement plan?
By rolling over an ex-employer’s retirement plan into a Rollover IRA, you maintain the tax-deferred status of your retirement account. Also, a Rollover IRA will allow you to consolidate all of your ex-employer’s retirement accounts into one IRA, making it easier to manage your retirement investments. A significant advantage of using a Rollover IRA versus leaving your retirement assets with an ex-employer is increased investment flexibility. Other advantages:
- More Control
- Avoid Withholding and the Tax Risk
- Keep Your Money
- Greater Investment Diversification
- Accessibility
- Estate Planning
- An Opportunity for Roth Conversion
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When should I initiate a Rollover?
- When you retire, change jobs or separate from employment for any reason, you are entitled to receive a distribution of your 401(k), 403(b), 457 or Thrift Savings Plan retirement funds and rollover to an IRA.
- When you receive a distribution of cash and/or assets from an existing IRA, you have 60 days to complete the rollover of the same property in order to avoid taxes and possible penalties.
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How is a Direct Rollover from a 401(k) or other employer-sponsored plan to STRATA accomplished?
Whether you are retiring, changing jobs or separating from employment for any other reason, leaving a job can be the perfect opportunity to reevaluate your retirement plan needs. Moving your retirement funds to a Rollover IRA can seem like a daunting task, but it is really quite simple if you follow these easy IRA rollover rules: Step 1: Contact your plan administrator to get the distribution packet and complete the paperwork by selecting a direct rollover to STRATA. Step 2: If you’re not already an account holder, you’ll need to open an IRA. Just follow the easy steps outlined in the IRA Account Kit. Step 3: Return the completed forms in the distribution packet to your plan administrator and provide a copy to STRATA.
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Are there any restrictions on rollovers between IRA accounts?
The IRS limits you to only one 60-day rollover during a 12-month period when rolling from one IRA account to another IRA. In addition, the same property rule applies, which means that you must rollover the same property (cash or in-kind assets) that was distributed to you from the other IRA.
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How long does a Rollover take from one IRA to another IRA?
You can request a distribution from another IRA and complete the rollover of the same cash or assets, generally in less time than it takes to complete a direct transfer. However, it is a reportable event which means the resigning IRA custodian will report the distribution on an IRS Form 1099. A distribution from your IRA is usually done either in the form of a check (if you've requested a liquidation) or as an in-kind distribution (if you requested re-registration of the assets). You then have up to 60 days to reinvest the funds or re-register the assets to your Rollover IRA. If the funds or assets are not rolled over within 60 days, taxes and possible penalties would be incurred. Important Note: A 2014 court ruling has changed the IRS's position regarding how often IRA rollovers may be completed. Since 2015, only one IRA-to-IRA rollover can be completed. Please review the One-Rollover-Per-Year Rule for more on this limit.
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How long does a Direct Rollover take?
A direct rollover from an employer’s retirement plan generally takes 2-6 weeks, depending on how long it takes the plan administrator to process it.
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Want to learn more information about Rollovers?
Visit the IRS website to learn more about IRA Rollovers of employer retirement plans and IRA distributions.
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Am I eligible to make an IRA Contribution?
Individuals are eligible to make IRA contributions if they have earned income. Earned income includes taxable employee compensation and net earnings from self-employment, as well as certain disability payments. The two ways to get earned income is to work for someone who pays you or if you own a business or farm. To see a complete list of what does and does not qualify as earned income please visit the IRS website. There is a spousal IRA exception to the earned income rule if you are married filing jointly and have a nonworking spouse. You may allow a working spouse to make contributions on behalf of the non-working spouse. This exception applies if the working spouse has income equal to both contributions.
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How long does it take to open a self-directed IRA and make a contribution?
The process can take as few as 1-2 days.
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How do I make an annual IRA contribution?
To contribute to your IRA with STRATA, simply follow these easy steps:
- Make your contribution check payable to: STRATA Trust Company
- Write your account number and reference the year of the IRA contribution on your check
- Complete and include a Deposit Certification with your check. Mail your check and Deposit Coupon to: STRATA Trust Company, PO Box 849, Austin, TX 78767
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How much can I contribute to an IRA for 2021 according to the contribution rules?
If you are eligible to make an annual IRA contribution, you may contribute up to the maximum of $6,000 if under age 50 or up to $7,000 if age 50 or over. You may contribute as often as you wish during the year (monthly, quarterly, etc.) as long as you do not exceed your eligible limit, which cannot exceed the maximum of $6,000 if under age 50 or $7,000 if age 50 or over. With a Simplified Employee Pension (SEP), the annual contribution limit increases to $58,000 for 2021, enabling a quick source of funding for a self-directed SEP IRA. Plus, you also consider making an additional annual IRA contribution of $6,000 (or $7,000 if age 50+), you can quickly amass a sufficient balance to start self-directing an IRA.
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What's the deadline for making my 2021 IRA Contribution?
This year, the tax-filing deadline of Friday, April 15 falls on the Emancipation Day holiday observed in Washington D.C. Because this is considered a legal holiday, the tax-filing and IRA contribution deadline is bumped to the next business day, Monday, April 18, 2022, for residents of D.C. and 48 of the 50 United States. Residents of Maine and Massachusetts have until April 19 to file tax returns and make IRA contributions because these two states observe Patriots’ Day on April 18. The envelope must be postmarked to STRATA (not your dealer) by April 18 or 19, whichever applies to you (excluding extensions). Read more about the 2021 contribution deadline in our Insights blog: What Is the 2021 Contribution Deadline for My Self-Directed IRA?
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How do I submit my 2021 contribution funds to my STRATA IRA?
You may send funds to your IRA by check, ACH, or wire. You will need to complete and submit the Deposit Certification form with your contribution to ensure the funds are deposited for the proper tax year.
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When can I make my 2022 IRA contribution?
If you are contributing to the current tax year, your contribution can be made as early as January 1.
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How much can I contribute to an IRA for 2022 according to the contribution rules?
If you are eligible to make an annual IRA contribution, you may contribute up to the maximum of $6,000 if under age 50 or up to $7,000 if age 50 or over. You may contribute as often as you wish during the year (monthly, quarterly, etc.) as long as you do not exceed your eligible limit, which cannot exceed the maximum of $6,000 if under age 50 or $7,000 if age 50 or over. With a Simplified Employee Pension (SEP), the annual contribution limit increased to $61,000 for 2022, enabling a quick source of funding for a self-directed SEP IRA. Plus, you may still make an additional annual IRA contribution of $6,000 (or $7,000 if age 50+), you can quickly amass a sufficient balance to start self-directing an IRA.
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What's the deadline for making my 2022 IRA Contribution?
The 2022 contribution deadline is April 15, 2023 (excluding extensions). The envelope must be postmarked to STRATA (not your dealer) by April 15 (excluding extensions).
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How do I submit my 2022 contribution funds to my STRATA IRA?
You may send funds to your IRA by check, ACH, or wire. You will need to complete and submit the Deposit Certification form with your contribution to ensure the funds are deposited for the proper tax year. If no tax year is selected, we will apply the contribution to the current tax year.
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Android Whitelist Instructions
Open an email from the sender you wish to whitelist, click their icon/picture, and then click "Add to Contacts."
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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:
- Open your Mail app and go to the Mailboxes screen.
- Select the Junk folder.
- Find the email you want to whitelist and swipe left to see options.
- Tap the More button.
- Tap the Mark button.
- Tap the Mark as Not Junk button.
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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
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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)
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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:
- From Yahoo Mail, select the Contacts icon
- Select Add a new contact
- Enter the sender’s information, including the sender email address
- Select Save
From a mobile browser- Go to Yahoo Mail in your mobile device’s web browser
- Tap the Sidebar menu icon
- Tap the Spam folder
- Select the desired email from the sender
- Tap the Move icon
- Tap Inbox
- Go to Yahoo Mail on your computer’s web browser
- Select the Spam folder If you don’t see the “Spam” folder, select More below the “Sent” folder
- Open the desired email from the sender
- Select Not Spam at the top of the page and the email will return to your Inbox
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Additional Clients Whitelist Instructions
For more information about whitelisting additional email clients, you can refer to LifeWire's resource How to Whitelist Email Addresses.