The Difference is in the Details
For more than four decades, investors have been leveraging self-directed IRAs to invest in a wide range of alternative assets outside of publicly traded markets. Federal law requires these assets to be held by a custodian, like STRATA Trust Company (“STRATA”), which are overseen by state and federal authorities, in addition to abiding by strict internal controls and auditing measures to ensure operational compliance, data security, and risk management.
Custodians are generally banks and trust companies, and are responsible for:
- Setting up your account
- Depositing your funds
- Processing your investments
- Ensuring your assets are titled correctly
- Fulfilling the IRS reporting requirements
- Issuing periodic statements of your account activity
Non-Custodial IRA Administrators
Non-custodial administrators are allowed to service self-directed IRAs—however, they must work through a custodian in order to do so. Administrators are middlemen, not directly regulated by state or federal banking regulators, and often do not have onsite safety and soundness examinations conducted for their operation. While many administrators blur the lines by providing many of the same services as custodians, the key differences are that administrators do not have the authority to hold customer funds or title to customer assets in their name. It is recommended that investors work directly with a self-directed IRA custodian instead of an administrator to reduce risk of unsafe or unsound activity.
Finding the Right Fit for You
Not all custodians are created equal. Here are four factors you can formulate questions around to better understand if your chosen IRA service provider is a custodian that is the right fit for you:
What Sets STRATA Apart
For starters, the experience and expertise we carry have helped thousands of investors and investment professionals hold self-directed retirement accounts in a wide range of alternative investments. Additionally, our commitment to service means investors have easy access to Client Service Team members and an entire library of SDIRA resources at their fingertips. Our customer-focused technology allows for seamless account management and streamlined transaction and asset transfer processes. And of course, we are completely transparent about our fees.
Experience the Value
STRATA Trust Company offers significant value compared to other custodians. See how we compare.
SERVICE ATTRIBUTES |
STRATA |
OUR COMPETITORS |
Calls answered by a live representative | Yes, our goal is an average hold time of < 1 minute | Most do not |
E-signature for online account opening | Yes | Most do not |
Required minimum cash balance | $0 | Most require a $300-500 cash balance |
Required hold time (for use of funds) | No | Most require a 3-5 day hold |
Transfer requests accepted by fax or email | Yes | Most require the investor to physically print, sign and send in |
Turnaround times for investment processing | Within 2 business days, 95% processed within 24 hours | Most take 3-5 days to process |
Email notifications from opening an account, requesting a transfer, depositing funds, investment processing and other service requests | Yes | May not offer |
Ability to trade public securities through a brokerage account | Yes | Most do not |
Financial Professionals
Streamlined and scalable institutional self-directed IRA solutions that deliver value to your investors
- Custody services for a wide range of alternative assets
- Robust experience with investment platforms
- API Solutions
- Pre-populated onboarding forms
- Dedicated Relationship Managers
- Custom data reports, documents and files
- STRATA hosted SFTP sites
Individual Investors
Simple custody solutions for self-directed IRA investments allowing greater control and flexibility over retirement portfolios
- No minimum cash balance
- No hold time (for use of funds)
- Customer Service Team that is quick to respond and easily accessible
- Timely processing of investment transactions
- Accurate tax reporting
- Online account access 24/7
Take the next step, learn more about custodian and SDIRA account holder roles.
Get To Know Your Custodian