What Is a Self-Directed IRA Custodian?
The trusted partner that holds your IRA while you choose how to invest.
All self-directed IRAs must be held and managed by an IRS-approved nonbank trustee or nonbank custodian.
A self-directed IRA custodian is a passive, third-party entity that handles your IRA funds in a trust or custody. Account holders direct custodians to execute transactions on their behalf while ensuring that all regulatory requirements are met.
Between hidden fees and an ever-increasing market saturated with new self-directed IRA custodians, it can be tough to choose the right one for your business.
Horizon Trust provides you with everything you need to know when choosing a self-directed IRA custodian, including fees, duties, and much more.
The Role of the Custodian
The role of the self-directed IRA custodian may be passive, but they do play an important role behind the scenes in making sure your investment decisions are followed through properly, and all reporting requirements are met.
The main responsibilities of a self-directed IRA custodian include:
- Holding SDIRA account funds in a trust or custody.
- Executing transactions based on direction from the client.
- Rolling over funds from one retirement plan to another (direct rollover).
- Ensuring regulatory compliance, such as ensuring clients don’t exceed their annual contribution limits.
- Filing Form 5498 and 1099-R with the IRS.
Some self-directed IRA custodians like Horizon Trust may provide educational information to help you make more informed decisions. However, a custodian can only act on your behalf and within the confines of the law. Therefore, they are not responsible for investment performance inside of an account.
Take Control of Your Retirement Investments
Enter your details below to learn how a Self-Directed IRA works and whether it’s the right structure for your retirement strategy.
Invest in What You Trust:
Grow wealth with real estate, private equity, crypto, and more—without paying capital gains taxes.
Checkbook Control With LLC Formation:
Set up an affordable LLC and gain fast, flexible access to investment capital without custodian delays.
Transparent, Flat Pricing:
No hidden fees, no asset-based charges. Just a one-time setup fee and an annual account fee that scales with you, not against you.
Education & Peer Support
Join a thriving community with free ebooks, biweekly webinars, and Facebook groups that help you learn and grow with other SDIRA investors.
How Does a Custodian Differ from a Depository?
Much like depositories, custodians are tasked with handling clients' funds.
However, custodians are heavily involved in account administration, whereas depositories are not.
Another key difference in the world of retirement planning is that depositories typically only offer limited investment options to stocks and bonds. Thanks to the structure and limited liability of custodians, they can handle and transact a wider array of assets under your direction, giving you more freedom and flexibility. Learn more: Custodian vs. Depository
What to Look for in a Self-Directed IRA Custodian?
It’s pretty clear that finding the right self-directed IRA custodian is important to the financial success of your retirement plan.
Therefore, we’ve prepared a few questions to ask your next self-directed IRA custodian before hiring one.
Size & Experience
- How much money do they handle under custody?
- How long does it take them to execute transactions on your behalf?
- How many clients have they worked with in the past?
- Do they have any case studies?
- What makes them different from other custodians?
Customer Satisfaction
- Are customer reviews positive?
- Do they have any testimonials?
- How well do you perceive customer service?
- Do they offer online account management service
Asset Knowledge
- What assets do they specialize in?
- Are they knowledgeable in specialized assets, such as promissory notes?
Fees
- Do they have account setup fees?
- Do they charge hidden fees for transactions?
Account Setup
- How easy is it to set up an account?
- Do they offer rollover services?
Checkbook Control
- Do they specialize in checkbook control?
- Is the process of opening an LLC easy?
Investment Help
- What educational resources do they offer to assist investors?
- Do they offer hands-on consulting to assist customers?
Proven Success. Trusted Leadership. Real Impact.
At Horizon Trust, we make it simple to open and manage a Self-Directed IRA, so you can take control of your retirement on your terms. Founded by Greg Herlean, who has overseen more than $1.3 billion in real estate transactions, Horizon Trust was built by someone who understands what self-directed investors need: personalized service, fast transactions, and a custodian that stays out of your way.
As seen on
Common Custodial Fees
Another key area to research when contracting a custodian is their fee structure. Every custodian charges differently, and some will be more costly than others.
Some common fees to look out for include:
- Account Setup Fees: Fees will vary, but some companies will charge upwards of $50-$200 to set up a self-directed IRA.
- Transaction Fees: Many custodians charge a fee for every trade or transaction you make that could be as little as $5-$20 per transaction.
- Rollover Fees: While rollovers come with zero tax consequences, some custodians do charge a small fee for executing rollovers or transfers.
- Annual Fees: Many companies charge a yearly account maintenance fee. However, unlike other custodians, Horizon Trust only charges a single annual fee that helps simplify account management.
Hidden Fees to Be Aware Of
In addition to most common account management fees, some custodians can nickel and dime you through several hidden fees, including:
- Wire Fees
- Research Fees
- Cashier’s Check Fees
- Corrected Tax Form Fees
- Medallion Stamp Fees
- Notary Fees
- Recurring Bill Pay
- Conversion Fees
- Check Fees
- Paper Handling Fees
- Distribution Fees
- Matured Note Fees
Bypassing Your Custodian with Checkbook Control
Does the idea of waiting on a custodian to execute transactions not work with your investment strategy?
Thankfully, self-directed IRAs with established LLCs can bypass their custodians through a little thing called “checkbook control.”
Checkbook control allows you to cut checks directly from your IRA as long as you establish an LLC. Look for a self-directed IRA custodian who offers or specializes in checkbook control services. While certain promoters exist, it’s often easier to partner with a custodian who has experience establishing IRA LLCs.
A self-directed IRA custodian may be a passive entity, but they provide invaluable services that go beyond basic account management. While many custodians are motivated by money, Horizon Trust believes in empowering investors through the power of self-directed IRAs.
Whether it’s giving customers exclusive access to our proprietary Investment Corner, monthly webinars, free ebooks, or our continuous educational materials, we strive to deliver actionable knowledge to investors that makes them money.
Together, we can harness the power of self-directed IRAs to build generational wealth and gain financial freedom using real assets that actually hold their value.
If you’re interested in hiring Horizon Trust to manage your self-directed IRA, contact one of our concierge members to schedule an appointment over the phone. We believe in offering hands-on service to make you feel as comfortable and confident as possible with your investment decisions.
5-Star Rated Custodian
Your Ultimate Guide To Self-Guided Success
Your retirement is of utmost importance to you, and it’s also important to us. Our ultimate retirement guide will tell you everything you need to help ensure the success of your self-directed retirement account. In it, you’ll find the differences between various retirement accounts and the many wealth accumulation vehicles, including real estate, and more.
Your Future, Backed by Our Track Record
Trusted by investors nationwide to take control of their retirement through Self-Directed IRAs.
Helping clients grow and protect wealth across real estate, crypto, and private investments.