Get to know your custodian
Understand the role of an IRA custodian, what makes self-directed IRAs unique, and your responsibilities as an account holder.
Why custodians are essential for IRAs
Federal law requires every IRA to be held by a custodian or trustee. Custodians safeguard assets, process transactions, and help ensure compliance with IRS rules. Without one, IRAs couldn’t exist.
What sets self-directed IRAs apart
A regular custodian acts as both a gatekeeper and service provider, often narrowing investment options to what they offer. A self-directed custodian is a neutral administrator — giving you the freedom to pursue a broader range of IRS-permitted assets, while ensuring compliance with IRS rules, reporting, and recordkeeping.
More flexibility
Unlock a broader retirement portfolio with access to both traditional and alternative assets, not just stocks and mutual funds.
Neutral role
Self-directed IRA custodians handle custody, processing, and reporting, but do not advise, sell, or endorse investments
Investor control
You make all investment decisions, perform your own due diligence, and ensure compliance with IRS rules
Custodian’s role explained
Custodial responsibilities
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Accept and process contributions, rollovers, and transfers
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Custody IRA account assets and maintain records
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Execute transactions at your direction
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Receive and record income for assets held
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Issue IRS Forms 5498 and 1099-R as required
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Report activity to the IRS and keep accounts in compliance
What a custodian does not do
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Provide investment advice or recommendations
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Endorse, investigate, or evaluate investments
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Perform due diligence or guarantee outcomes
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Determine fair market value of investments
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Monitor account performance
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Decide tax treatment or calculate tax liability
Your role as the account holder
With a self-directed IRA, you are fully in charge of your investment decisions. That means it’s up to you to research investment providers and offerings, ensure compliance with IRS rules, and keep your account activity on track. STRATA provides the administration and reporting, but the responsibility for investment choices and oversight is yours.
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Direct all investments and provide required instructions
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Perform due diligence on every investment
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Understand risks and ensure investments are allowable by the IRS
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Monitor account activity and track required taxes and reporting
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Avoid prohibited transactions and dealings with disqualified persons
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Provide annual fair market valuations for assets
We’re here to help you get started
Not sure which IRA type or investment option is right for you? Our team is ready to guide you through the process and answer your questions.
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