How To Set Up a Self Directed IRA

Setting up a Self Directed IRA is a 3 step process.

  1. Create an account with a Self Directed IRA Custodian
  2. Transfer funds into the Self Directed IRA
  3. Instruct the IRA Custodian to invest funds into the asset of your choice

Self Directed IRA Set Up Process

Step 1: Create an account with a self directed IRA custodian

  • The first step to set up a Self Directed IRA is to contact a Self Directed IRA Custodian to complete their Account Application. The application will ask basic questions like “What kind of IRA are you opening?” and “How are you funding your new IRA?” 

Step 2: Transfer Funds into the self directed ira

If transferring funds from an existing IRA: 

  • You will Complete a Transfer Authorization form instructing the Self Directed IRA Custodian to initiate the transfer. The form will then be sent to your current IRA Custodian for processing. Then, your existing IRA funds will be deposited into your new Self Directed IRA.

If rolling over funds from a former employer’s plan, like a 401(k) or 403(b):  

  • You will contact your employer or current plan administrator to request rollover paperwork. They will issue a check or wire to a new Self Directed IRA.  

step 3: Instruct the IRA custodian to Invest Funds Into the Asset OF Your Choice

  • Complete an Investment Authorization form instructing your Self Directed IRA Custodian to invest your IRA funds directly into your chosen asset. This form will specify the investment amount and delivery instructions. 
  • Self Directed IRA Custodians serve as passive, non-discretionary custodians and therefore cannot offer any investment or legal advice. It is recommended that investors perform due diligence before placing investments to ensure suitability. Self Directed IRA Custodians like Madison Trust Company are happy to help with any questions or concerns about the investment process.

Additional Self Directed IRA Set Up Information

Madison Trust’s Processing Timeframe – The entire process typically takes 3 – 4 weeks from start to finish. Or, wire and expedited service may be requested for a 2 – 3 week turnaround. For a more detailed look at Madison Trust Company’s processing timeframe, click here.

Fees – Madison Trust Company employs a flat rate pricing model. This means that Madison Trust’s custodial fee is fixed at $75 per quarter regardless of the amount in an IRA. Madison Trust Company’s fees are amongst the lowest in the industry. To compare Madison Trust’s pricing to other custodians please use the comparison calculator.  

Why Madison? – Madison Trust Company acknowledges the amount of hard work dedicated to growing one’s life’s savings. For this reason, it is crucial to have a trusted custodian.   

  • Madison implements a responsive business model with a focus on customer support. Our CISP trained team can answer any questions about the Self Directed IRA process. We are committed to have every transaction be executed flawlessly on (or ahead) of schedule. 
  • Evident through our A+ rating on the Better Business Bureau and highest rating in the industry across all online rating platforms (Google, Yelp, Shopper Approved, etc.), Madison’s dedication to customer service creates a positive investing experience. Read our reviews here.
  • Madison’s flat rate fee schedule never has any unexpected or hidden fees. It is $50 to set up an account and $75 per quarter to maintain, no matter how much money is accumulated in your account.  

To learn more about how to set up a Self Directed IRA please contact us at 800-721-4900 or schedule a call with an IRA Account Specialist.

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Getting started is easy

1

Speak with a specialist

You’ll be asked a few simple questions to make sure that a Self Directed IRA is your best option.

2

Open an Account

Madison will guide you step-by-step through the process, including any necessary transfers.

3

Invest

Your funds will be invested directly into the asset of your choice.


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