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The Correct Way to Title IRA Assets

Asset Titles Are Crucial to IRA Success

In a Self-Directed IRA, it’s very important how your assets are titled. If an asset is titled incorrectly, it could cause IRS problems and possibly lead to taxes and penalties. It’s important to remember that you do not own the assets in your account. All assets in your plan should be titled to the correct owner, which would be “Sunwest Trust Custodian FBO your name IRA”.

Don’t Forget To Sign ALL Documents

It’s also important to note that all documents pertaining to the purchase of any asset should be signed by Sunwest Trust on behalf of your Individual Retirement Account. For instance, if you are purchasing a piece of real estate, the title company will initially send Sunwest Trust a copy of the purchase agreement titled to “Sunwest Trust Custodian FBO your name qualified program”. When it comes time for the closing, the title company will send all of the closing docs to Sunwest Trust to sign on behalf of the plan. The client or the title company will also need to give directions on how they would like the documents returned (i.e. overnight mail, regular mail, fax or email).

IRA LLC’s Have Slightly Different Rules

If you are using an IRA LLC, the rules are a little different. With an IRA LLC, all of your funds will be held in a checking account set up for the LLC. Instead of taking title to the assets in the name of the savings instrument, you will take title in the name of the LLC. Since the account owns the LLC, the assets will still technically be owned by the IRA. The manager of your LLC will sign all documents pertaining to the purchase of an asset.

Remember: Sunwest is a Custodian. We Don’t Provide…

Please remember that Sunwest Trust does not provide legal or tax advice, nor do we sell or endorse any investment products. This blog is simply meant to provide general information to our clients and prospective clients.