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Investor Insights Blog|How to Title a Self-Directed Investment in an Equity Trust Account

Self-Directed IRA Concepts

How to Title a Self-Directed Investment in an Equity Trust Account

signing a form

When you invest in an asset using your self-directed IRA or other account, the asset is owned by your account, not you personally. As such, the investment ownership documentation must be properly titled to the account.

Here are the instructions for the proper titling of investments made using an Equity Trust self-directed account. Instructions vary based on whether your account is the sole owner of the asset or if there are multiple owners.

How to Title an Asset in Your Equity Trust Self-Directed Account

Sole Ownership Titling

Use this titling if your investment is titled directly to your account and your account is the only owner.

  • For Traditional, Roth, SEP, and SIMPLE IRA account types, the titling should be worded as follows:

Equity Trust Company Custodian FBO (For Benefit Of) [Account Owner’s Name] IRA

Example:
Equity Trust Company Custodian FBO Jane Doe IRA

  • For CESA and HSA account types, the titling should be worded as follows:

Equity Trust Company Custodian FBO [Account Owner’s Name] CESA
Or
Equity Trust Company Custodian FBO [Account Owner’s Name] HSA

Example:
Equity Trust Company Custodian FBO Jane Doe HSA

  • For Qualified Plans including Individual 401(k)s:
    Call Client Services for details: 800-955-3434, Option 3

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Co-Ownership Titling

(Multiple owners of one investment)

Use this titling if your investment is titled directly to your IRA and your IRA will be one of two or more owners of the same investment.

  • For Traditional, Roth, SEP, and SIMPLE IRA account types, the titling should be worded as follows:

Equity Trust Company Custodian FBO [Account Owner’s Name] IRA, XX% Undivided Interest

(All owners combined must total 100%)

Example:
Equity Trust Company Custodian FBO Jane Doe IRA, 25% Undivided Interest and Equity Trust Company Custodian FBO Bob Smith IRA, 75% Undivided Interest

  • For CESA and HSA account types, the titling should be worded as follows:

Equity Trust Company Custodian FBO [Account Owner’s Name] CESA, XX% Undivided Interest
or
Equity Trust Company Custodian FBO [Account Owner’s Name] HSA, XX% Undivided Interest

(All owners combined must total 100%, but owners’ methods of funding do not have to be identical)

Example 1: Jane Doe uses an HSA and Bob Smith uses an IRA:
Equity Trust Company Custodian FBO Jane Doe HSA, 25% Undivided Interest and Equity Trust Company Custodian FBO Bob Smith IRA, 75% Undivided Interest

Example 2: Jane Doe uses an HSA and Bob Smith funds with cash:
Equity Trust Company Custodian FBO Jane Doe HSA, 25% Undivided Interest and Bob Smith, 75% Undivided Interest

  • For Qualified Plans including Individual 401(k)s:
    Call client services for details at 800-955-3434, Option 3

[Related: Self-Directed IRA Rules and Regulations]

If you’re an Equity Trust client and want more information about the self-directed investing process, log into myEQUITY and navigate to Resources>Education.

1

Can I co-invest other funds with my IRA to make an investment?

Yes, partnering your self-directed IRA or other retirement account with another funding source is possible. You can partner your IRA with your non-IRA money, your other retirement accounts, your spouse’s IRA, other people’s IRAs, another investor’s non-IRA money and your children/grandchildren’s CESAs, to name a few options.

2

Can my IRA purchase real estate that my corporation, partnership or LLC owns?

No. This is considered a prohibited transaction (see IRC 4975).


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