Invest

Buying an Asset in Your IRA – Call us before you invest – (866) 447-6598

Once you have your self-directed IRA open and funded, it’s time to invest. You can invest your IRA dollars in anything except life insurance contracts and collectibles. Keep in mind the rules about prohibited transactions when investing. We have a 3-5 business day compliance review turn-time for submitted documentation.

When making any investment, please remember that you must maintain a minimum of $325 in your account in liquid funds after the investment has been made. If you will be paying your annual fee of $275 from the IRA you must account for that as well. Additionally, there might be some small miscellaneous fees that need to be paid. You should plan on having a cushion in your account between $600-$1,000 dollars to avoid any potential shortfalls. Real estate requires a 10% cushion.

Process to Invest Your Self-Directed IRA:
  1. Complete a Self-Directed Investment Direction Form
    1. In Section 7 of this form, please indicate the following:
      • Asset being acquired
      • Amount to disburse
      • Disbursement method
        • Check -Need name of payee and address to send check to
        • Wire – Need wire instructions. If wire instructions are printed on a separate page type “see attached” then sign the actual wire instructions.
        • NO DIGITAL SIGNATURES
  2. Provide the supporting documentation
    1. Buying Real Estate? Provide an “Offer to Purchase”
    2. Buying units of an LLC? Provide a “Subscription Agreement”
    3. Making a Note? Provide a signed copy of the Note
  3. The investor should be identified as follows:
    1. For all investments: <client First Name Last Name>, legal owner via non-trust custodial IRA with AET
    2. Be sure to indicate % of ownership on title for multiple investors
  4. Signing of documents:
    1. On a go-forward basis we will no longer sign documents.
    2. Due to the titling change, the account holder will be the only one that can sign the documents (with the new vesting)
  5. Excluded States:
    1. Because of a variety of issues we have encountered with the following locations we will no longer accept real estate transactions in the following areas:  The State of Maryland,  The State of South Carolina,  The State of New York,  Cook County, Chicago, Illinois,  The State of Georgia, The State of Florida.  This list is subject to change without advance notice. We may encounter legal issues that require immediate action which may then result in cases where investment requests are rejected.

uDirect IRA Services is your Point-of-Contact regarding your IRA investments

No Digital Signatures

Submit your DOI & supporting documentation in one of the following ways:

  1. Scan & e-mail to Administration@uDirectIRA.com
  2. Fax to 866-538-3539
  3. Mail to 8 Corporate Park, Suite 210, Irvine, CA 92606

If your advisor needs the signed investment documents back, let us know up-front.

Selling an Asset in Your IRA

When money is being wired to your account, make sure there is sufficient text in the wire (in the beneficiary/notes sections) to let us know what this is for. When funds are sent by check we also need information regarding the source of the funds. This way we can easily identify the funds and post them accordingly.

When paying off an asset please provide a settlement statement for real estate, a payoff demand notice for a note or private placement investment. In this way we know you asset is paid in full and we can update the records.

Please note that the establishment of an account with us does not mean that we have reviewed or approved any potential investments for your account. You are advised that, per your account agreement, that we are not obligated to fund any and all investments of your choosing if we deem them to be administratively infeasible.

Some investments may pose legal or administrative problems. This will most likely mean that we will not fund certain investments if they meet this criteria.

If you have a potential investment and are uncertain of the custodian’s acceptance of the investment, we recommend that you contact us and get a preapproval for the investment before moving forward with your account.

If you have questions regarding your account or pending investments please contact uDirect IRA Services, LLC at:

(714) 831-1866 / Administration@uDirectIRA.com

What You (The Investor) Does
  • Does all the homework on the investment risk
  • Chooses the investment
  • Conducts all due diligence
  • Negotiates the price of the asset
  • Makes sure investments are not prohibited by IRS
  • Makes all investments in the name of the IRA account
  • Makes sure transactions don’t include disqualified persons
  • Monitors their account
  • Completes documents or has them completed
Services uDirect IRA Services Provides
  • Administers the sales and purchases of assets, and processes invoices
  • Administers account contributions and distributions
  • Provides accurate and timely IRS reporting
  • Provides IRA account record-keeping
  • Provides an online statement available 24/7
What uDirect IRA Services Does Not Do
  • Endorse any particular product or company
  • Offer products or recommend investments
  • Provide tax or investment advice
  • Provide legal or financial advice
  • Supply investment templates
  • Complete or alter account-holder’s forms or legal documents