Frequently Asked Questions About Equity Trust Company and Self- Directed IRAs
- Where is Equity Trust located?
- What are the advantages of a truly self-directed IRA?
- What are the differences between various IRAs?
- What are the contribution limits for a self-directed IRA?
- How can I contribute more than $4,000 to my self directed IRA?
- What are the different types of investments I can make within my self-directed IRA?
- What types of investments Equity Trust will not accept?
- What is a prohibited transaction?
- How do I make an investment using my self directed IRA?
- Does Equity Trust recommend any investments or give investment advice?
- What are the fees associated with an Equity Trust self-directed IRA?
- How do I open a self directed IRA account at Equity Trust Company?
- Can I transfer an IRA, 401(k), or 403(b) to a truly self-directed IRA at Equity Trust?
- How are my retirement funds protected at Equity Trust?
Where is Equity Trust located?
Equity Trust Company is located in Elyria, OH, approximately 20 miles west of Cleveland. (see Map)
What are the advantages of a truly self-directed IRA?
A truly self-directed IRA allows you to diversify your retirement portfolio beyond the standard investments allowed by most IRA custodians, such as stocks or mutual funds. By using your knowledge and expertise, you can self direct your IRA into alternative investments which you understand better - such as real estate or limited partnerships - helping to better prepare for your future and your family's future. See Benefits of a Self-Directed Individual Retirement Account (IRA).
What are the differences between various IRAs?
IRAs differ in many ways including contribution limits, tax-deferred or tax-free gains, required distributions, etc. For more information on the various IRA and retirement plan options, see IRA Basics.
What are the contribution limits for a self-directed IRA?
Contribution limits vary with different types of IRAs. See IRA Contribution Limits.
How can I contribute more than $4,000 to my self-directed IRA?
The contribution limit for individual IRAs (Traditional IRA and Roth IRA) is $4,000 for 2008. Additional contributions of $1,000 a year are allowed for those over the age of 50. Other types of IRAs, known as Small Business Retirement Plans, allow you to contribute substantially more than $4,000. For more information, see Maximize IRA Contributions.
What are the different types of investments I can make within my self directed IRA?
For more information on your investment choices in an Equity Trust self directed IRA see Self- Directed IRA Investment Opportunities at Equity Trust.
What types of investments Equity Trust will not accept?
You may not use your Equity Trust self directed IRA to invest in the following collectibles:
- Artwork
- Rugs
- Antiques
- Metals
- Gems
- Stamps
- Coins
- Alcoholic Beverages
- Sub Chapter S corporations
What is a prohibited transaction?
A prohibited transaction is any improper use of your IRA account by you, your beneficiary or any other disqualified person. For a list of disqualified persons and more information on prohibited transactions, see Prohibited IRA Transactions.
How do I make an investment using my self-directed IRA?
Learn how to make investments with your Equity Trust self-directed IRA.
Does Equity Trust recommend any investments or give investment advice?
Equity Trust is a passive IRA custodian; we do not offer investment advice nor do we recommend any investments or investment products. Because of our passive charter, clients at Equity Trust will never have to worry about pressure tactics and solicitations to invest in certain areas. It is our belief that our clients are the best stewards for their assets as well as their futures.
What are the fees associated with a Equity Trust self-directed IRA?
For a list of fees, please see Equity Trust All-Inclusive Self-Directed IRA Fee Schedule.
How do I open a self-directed IRA account at Equity Trust Company?
Opening an account with Equity Trust is an easy process. You can Download Equity Trust self- directed IRA forms any time, which can then be faxed or mailed. Or click on Request Information and select "Forms Packet". Or call 440-323-5491 to request an application be mailed to you. For more information, please see Open a Self-directed IRA at Equity Trust.
Can I transfer an IRA, 401(k), or 403(b) to a truly self-directed IRA at Equity Trust?
Absolutely. We encourage our clients to take complete control of their retirement accounts and invest as they see fit. The process is termed a "Rollover" or a "Transfer" and is relatively simple to accomplish. Click for more information on how to Transfer and Rollover IRAs into an Equity Trust self-directed IRA.
How are my retirement funds protected at Equity Trust Company?
This should be one of the first questions asked when considering a custodian for your retirement funds. Please allow us to explain how your accounts are protected at Equity Trust:
- Regulatory Oversight. Equity Trust Company is a state-chartered trust company, and is regulated by the South Dakota Division of Banking.
- A Proud History of Experience and A Proven Track Record. Equity Trust Company and its affiliates have more than 32 years of experience acting as custodian for self directed IRAs and other retirement plans.
- Cash Balances FDIC-insured. When cash funds are transferred to Equity Trust, they are immediately deposited into a separate FDIC-insured bank account, held at United Western Bank (NASDAQ:UWBK). Equity Trust does not hold client cash balances and client funds are never mingled with firm funds.
- Fidelity Bonding. Equity Trust Company has fidelity bonding against employee theft.
- Securities Protected by SIPC. Our brokerage affiliate, Mid-Ohio Securities, is a member of the Securities Investor Protection Corporation (SIPC). The SIPC protects accounts up to $500,000 (inclusive of $100,000 cash) against member firm's insolvency. Clients who trade through Mid-Ohio Securities are protected by the SIPC.
- No Conflicts of Interest. Equity Trust Company does not recommend or sell investments; our firm acts only as a passive custodian for self directed IRA and small business retirement plans. Because of our passive nature, you will never have to worry about solicitations or slanted investment research. Our clients are in complete control and that's what we mean by a truly self-directed IRA.
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