What other fees might I expect?

What other fees might I expect?

Beyond your setup fee and monthly subscription, a few additional costs can arise depending on your plan type and how you use it. None of these are charged by Self-Directed Plans. They come from third parties: IRA Resources, your bank, or state agencies.

IRA plans: custodian transaction fees

IRA LLC and IRA Trust plans include a custodian, IRA Resources, who administers the IRA layer of your plan. Your monthly subscription covers the IRA Resources Annual Recordkeeping Fee, but certain transactions at the IRA layer carry additional fees charged directly by IRA Resources.

These transaction fees apply to events such as:

  • Transferring funds into your IRA from another retirement account
  • Taking a distribution from your IRA
  • Completing a Roth conversion
  • Moving funds between the IRA and the plan entity (buying or selling the IRA's ownership interest in the LLC or trust)

Refer to the IRA Resources Fee Schedule for a complete list of transaction fees and current amounts.

One important clarification: IRA Resources does not charge transaction fees for investments made inside your plan-owned LLC or trust. Custodial fees only apply to events at the IRA layer itself.

Solo 401(k): no custodial transaction fees

The Solo 401(k) has no custodian. You serve as the plan trustee and hold investments directly through the plan. As a result, there are no custodial transaction fees of any kind. The only plan-level fees are your monthly subscription and any bank fees associated with your plan bank account.

Bank fees: all plan types

All plans require a bank account in the name of the plan entity. Your bank will set its own fee schedule for that account. Common fees include outgoing wire transfers, incoming wires in some cases, and check orders. These vary by institution and are not set or controlled by Self-Directed Plans.

IRA LLC: state compliance costs

If your plan includes an IRA LLC, the LLC has ongoing state compliance obligations. These include periodic report filings and, in some states, annual franchise taxes. These costs are obligations of the LLC itself and must be paid from the LLC bank account. The amounts and due dates vary by state.

Frequently Asked Questions

Will IRA Resources notify me before charging a transaction fee?
Yes. All transactions that generate a fee are initiated using a form, either online or as a PDF. When you complete the form, the applicable fees are disclosed, and you choose at that point whether to pay from the IRA or personally.

Are there fees when I make an investment using my LLC or trust checkbook?
No. IRA Resources does not charge fees for investment transactions made inside your plan-owned LLC or trust. Only IRA layer events, such as contributions, distributions, transfers, and Roth conversions, carry custodial transaction fees.

Can I pay fees personally to keep from depleting my plan?
It depends on the type of fee. Some fees must be paid from the plan, while others give you a choice. For a full breakdown by fee type, see Are fees paid personally or from the plan?.

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Disclosure

This information is provided for educational purposes only and should not be interpreted as tax, legal, or investment advice. Readers are encouraged to consult a qualified professional who can offer guidance based on their personal situation.

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