“Independent oversight by a third-party fiduciary to track and monitor investment activities is one of the key aspects of the statutory scheme. When coins or bullion are in the physical possession of the IRA owner (in whatever capacity the owner may be acting), there is no independent oversight that could prevent the owner from invading her retirement funds. This lack of oversight is clearly inconsistent with the statutory scheme. Personal control over the IRA assets by the IRA owner is against the very nature of an IRA.” McNulty vs. Commissioner, 157 T.C. No.10 (Nov. 18, 2021)
The ruling reiterated the importance of a custodian when IRA assets are involved:
“A custodian is required to maintain custody of the IRA assets, maintain the required records, and process transactions that involve IRA assets…While an IRA owner may act as a conduit or agent of the IRA custodian; she may do so only as long as she is not in constructive or actual receipt of the IRA assets.”
Access the full whitepaper – Checkbook LLC IRA: Proceed with Caution – to learn more about what this ruling means for checkbook control, frequently asked questions, and more.
1How do I set up a self-directed retirement account?
To set up a self-directed retirement account with Equity Trust visit myEQUITY and start the process today. You can also visit How to Get Started for more information. Or simply schedule a free, one-on-one consultation with an Equity Trust Senior Account Executive.
2Can I check my account online to see the status of my account?
Yes. Once your account has been opened and you have your own Client Access PIN (personal identification number) you can check the status of your transfer online or feel free to contact Equity Trust. Our intuitive and interactive account management site, myEQUITY, provides a responsive experience for computers, tablets and mobile devices offering around-the-clock account access at home or on-the-go.
