Funding My Self-Directed IRA FAQ
Transfer (IRA to IRA)
How do I transfer funds from my current IRA held at another custodian to a Vantage Self-Directed IRA?
Incoming IRA transfer requests to a Vantage Self-Directed IRA must be initiated by the account holder. To initiate this process, an IRA Transfer Form must be completed and submitted to Vantage along with a copy of the most recent IRA statement from the current custodian. This form requires an original signature and some custodians also require a Medallion Guarantee Stamp. Please inquire with your current custodian on whether a Medallion Guarantee Stamp is required from them to help avoid any delays in your transfer request.
What is a Medallion Signature Guarantee Stamp and why do I need it?
The Medallion Guarantee Stamp is a special signature guarantee for the transfer of securities. It is a guarantee by the transferring financial institution the signature is genuine and the financial institution accepts liability for any forgery. Please confirm with your resigning custodian if it will be required as only certain custodians require this stamp to process your request.
Are there fees associated with a transfer of cash to Vantage?
No, there are no Vantage fees associated with an incoming cash transfer. Please note your current custodian may have fees for terminating an account, processing liquidation of assets and/or sending a wire.
How long does a transfer take?
We often see the IRA transfer process range anywhere from seven to twenty-one business days. The resigning custodian, not Vantage, controls the timing of the IRA transfer process. You will be notified by Vantage once your transfer has been sent and received by your resigning custodian.
What does it mean to liquidate my assets?
When you liquidate your assets, you are selling a portion or all of your stock market based investment assets to obtain the cash proceeds. Please note it takes the trade date plus 3 days to settle a liquidation request of stock market based holdings. Vantage does not accept in-kind or ACAT transfers of stock market based assets. We will only accept cash or in-kind transfers of alternative assets into your Vantage IRA.
How do I liquidate my assets at my resigning custodian?
Contact your resigning custodian to place an order to liquidate (sell) all or a portion of your stock market based holdings. Please note your resigning custodian will not allow Vantage to provide instructions to liquidate assets. Liquidation orders must be made by the account holder and/or the investment advisor of record.
Why does Vantage need a copy of my current IRA statement with my transfer form?
With your statement, we verify the account you are transferring assets from is active along with the account name, number and type.
What does an “in-kind” transfer mean?
In-kind means you are transferring an alternative asset (not cash) to or from your Self-Directed IRA without buying or selling the asset. In-kind transfers require your alternative asset be re-registered in the name of the receiving custodian. Please note a re-registration fee of $125 will apply for each incoming in-kind alternative asset transfer to your Vantage IRA.
Will I be notified when the funds and/or asset is received by Vantage?
Yes, we will notify you via email once the funds or assets have been received.
When will funds be available to make an investment purchase?
Funds received via personal check will be placed on a five business day hold. Funds received via bank draft will be placed on a two business day hold. Funds received via wire or cashier’s check will be available the next business day following their deposit into your Self-Directed IRA.
Rollover (Qualified Plan to Self-Directed IRA)
How do I rollover funds from my previous qualified plan (i.e. 401k, 403b, 457, profit sharing plan, defined benefit plan, etc.) to my Vantage Self-Directed IRA?
Most plan administrators require the plan participant complete their proprietary IRA Rollover Form to provide instruction for the outgoing rollover request. Contact your former employer’s plan administrator, plan sponsor or benefits department to determine what, if any, special procedures may be required and how long they will take to process your rollover request. Qualified plans that permit participants to invest in alternative investments allow these plan assets to be rolled over “in-kind” into your Vantage IRA. In-kind means the assets you held in your previous qualified plan are rolled over as-is (i.e. without selling it) into your Vantage Self-Directed IRA. Incoming in-kind rollovers require your alternative asset be re-registered in the name of your Vantage IRA. Please note a re-registration fee of $125 will apply for each incoming in-kind alternative asset rollover. Your former employer can advise you about any in-kind rollover or transfer restrictions. If you are still employed, check with your current plan administrator to determine if self-direction is currently allowed within your plan or if this option can be added.
Are there fees associated with a rollover of cash to Vantage?
No, there are no Vantage fees associated with an incoming cash rollover. Please note your plan administrator/sponsor may have fees that apply for terminating an account, processing liquidation of assets and/or sending a wire.
How long does a rollover take?
We often see the rollover process range anywhere from seven to twenty-one business days. The former employer’s plan administrator and/or plan sponsor, not Vantage, controls the timing of the IRA rollover process. You will be notified by Vantage once your rollover funds have been received.
Can I rollover funds out of my current 401k plan to my Vantage Self-Directed IRA?
Only in the event your current plan documents has a provision for an “In-service distribution/withdrawal” within your plan is this permissible. Contact your current plan sponsor for details.
What is the difference between a direct and indirect rollover?
A direct rollover must be initiated by completing an IRA rollover form from your previous employer’s Qualified Plan Sponsor. The IRA rollover form serves as the plan participant’s instruction to the plan administrator to send the desired amount directly to the established Self-Directed IRA. The plan administrator will make the check/wire vested/payable directly to the Self-Directed IRA. By contrast, an indirect rollover occurs when the plan participant request a qualified plan distribution to their individual name instead of an IRA. To avoid any tax consequences, the plan participant must place 100% of the funds received back into another qualified plan or IRA within 60 calendar days.
Will a rollover incur a taxable event?
A rollover could create a taxable event if and when a qualified plan or IRA distribution has been requested by an account holder and 100% of the retirement funds received are not placed back into a retirement account within 60 calendar days.
How do I rollover an asset in-kind?
There are two components to a properly completed in-kind rollover. 1) An in-kind rollover request form must be sent to the current retirement plan administrator to provide direction and 2) the alternative asset being rolled over must go through a re-registration process. A re-registration involves the act of changing the registration of the ownership/vesting/titling of the asset to the new Self-Directed IRA name so proper custody of the asset is maintained.
Contribution
How do I make a contribution to my Self-Directed IRA?
There are two ways to contribute funds. By check, made payable to your Self-Directed IRA (Vantage FBO Your Name) and submitted with a Deposit Coupon. If you would like to send funds by wire, please contact our office to request the wiring instructions.
When will my funds be available?
Funds received via personal check will be placed on a five business day hold. Funds received via bank draft will be placed on a two business day hold. Funds received via wire or cashier’s check will be available the next business day following their deposit into your Self-Directed IRA.
What is my contribution deadline for each tax year?
The deadline will be based on your account type. Please visit www.IRS.gov for more details.
Traditional, Roth: Tax filing deadline (no extensions)
SEP: Tax filing deadline (including extensions)
Simple (employee): Calendar year
Simple (employer): Tax filing deadline (including extensions)
How do I determine if I am eligible to make a contribution?
Your contribution limit considers various factors including age, income limits and account type. Please visit www.IRS.gov for more details.