Tips for Your Mid-Year IRA Review

A timely check-in

As we reach the midpoint of 2026, it is a smart time to pause and review your self-directed IRA (SDIRA). With an SDIRA, you gain control and flexibility, especially when investing in alternative assets. That flexibility also comes with a bit more responsibility. A thoughtful mid-year check-in can help you stay organized, avoid last-minute decisions, and keep your account aligned with your goals. Use the checklist below to guide your review.

☐ Contributions

Start with a simple question: Have you contributed for 2026 yet?

With tax season behind us, now is an ideal time to revisit your contribution strategy. If you’re eligible and haven’t maxed out your contributions, adding funds now can help maximize time in the market over the rest of the year.

Also consider whether you have assets elsewhere that could be moved into your SDIRA. A job change or retirement may make you eligible to roll over funds from a workplace plan. You can also transfer existing IRA assets, including inherited IRAs, into your SDIRA without triggering taxes. These transfers are typically not reportable events.

As always, it is wise to evaluate your broader financial picture and consult a qualified professional before making decisions.

☐ Liquidity

Liquidity is especially important for SDIRAs that hold less liquid assets.

If your SDIRA includes real estate or private investments, you need to ensure the account has enough cash to cover ongoing expenses. These may include property taxes, insurance, repairs, or other investment-related costs. IRS rules require that all investment-related expenses be paid directly from the IRA, not from your personal funds.

A mid-year review is the perfect time to assess your cash position. Maintaining adequate liquidity can help you avoid being forced to sell an asset quickly or at an unfavorable time to cover an unexpected expense.

☐ Valuation updates

Accurate valuation is a key part of staying compliant. The IRS requires that all custodians obtain and report the fair market valuation (FMV), or good faith estimate, of an IRA annually and/or prior to a taxable event. Some investments, such as publicly traded securities or precious metals, are straightforward to value because they are actively traded in established markets. For accountholders invested solely in these types of assets, no action is required. Other alternative investments require the accountholder, investment sponsor, or a qualified third party to provide STRATA with the current market value or good-faith estimate, along with any supporting documentation that may be needed. Regardless of the asset type, the reporting requirement still applies.

• It establishes the tax liability for distributions to the IRA owner or beneficiaries.
• It is used to determine required minimum distributions.
• It determines the tax liability for conversions from a Traditional IRA to a Roth IRA.

» For STRATA Trust Company accountholders, annual valuation updates are due by April 30 to support IRS Form 5498 reporting, with late fees beginning July 1. For taxable events—such as distributions or Roth conversions—valuations are required at the time of the transaction.

☐ Beneficiary designations

Beneficiary designations are easy to overlook but critically important. Any major life event, such as marriage, divorce, the birth of a child, or the passing of a loved one, should prompt a review. Keeping your designations current helps ensure your assets are distributed according to your wishes and can often help your beneficiaries avoid probate. Even small details, such as outdated contact information, can create challenges down the road. A quick review now can provide peace of mind later.

☐ Deadlines

There are a couple of important deadlines to keep on your radar, and a little early planning can go a long way in helping things run smoothly.

Required minimum distributions (RMDs)

If you are age 73 or older in 2026, you will need to take a required minimum distribution. The same may apply if you have inherited an IRA. While this requirement can feel a bit complex, planning ahead can make it much easier to manage.

For example, if your SDIRA holds less liquid investments, you might consider taking your RMD from another IRA that has more readily available cash. This can help you avoid selling alternative assets at a time when market conditions are not in your favor.

Roth conversions

Converting assets from a Traditional IRA to a Roth IRA can be a smart move for some investors, especially if you are expecting long-term growth or want to avoid RMDs down the road. It is a strategy worth exploring if it aligns with your overall goals.

If you do decide to move forward with a conversion, timing matters. The conversion must be completed by December 31 to count for the current tax year. There are no extensions or carrybacks, so acting before year-end ensures it is included in your 2026 income.

A mid-year IRA review does not have to be complicated. By focusing on contributions, liquidity, valuation, beneficiary designations, and deadlines, you can stay organized and proactive. You can also review STRATA’s 2026 IRA Calendar to stay aware of important deadlines and key dates in the second half of the year.

STRATA is here to support your journey. While we do not provide tax, legal, or investment advice, our team can help you understand IRA rules and connect you with helpful resources so you can make informed decisions with confidence.