How to Guide - True Self-directed IRA(SDIRA) custodian who is not a Market Participant.
DRS your IRA using in-kind distribution and rollover process to Computershare
DRS your IRA in 3 -5 business days
- Complete a DIY in-kind distribution steps only and in 3 - 5 business days your shares will be DRS'd and registered in Computershare without the need of a custodian
- Then, you have 60 days to complete the rollover process with a new Self-directed IRA (SDIRA) custodian of your choice (recommend true SDIRA custodian who is not market participant), and without any tax implications.
Note: You are allowed one in-kind distribution rollover per year.
Your new SDIRA custodian will complete the Computershare rollover form and will file all the necessary forms(1099-R/5498) for the IRA rollover with the IRS for you. Also, if the custodian doesn't ask, provide your new SDIRA custodian with a copy of your statement with the IRA initial contribution from your previous broker (i.e. Fidelity) so they can ensure your 5-year clock is correct.
- Once your GME IRA shares are DRS'd and registered using the in-kind distribution process and in Computershare, the IRA shares are never unregistered, even throughout the rollover process.
Additional information. Thanks to Ape u/QuaggaSwagger who had a conversation with Computershare.
He DRS'd his IRA shares in 2 days and did not apply the temporary stop on his existing Computershare non-retirement account per the guide, and his shares ended up in the same account. However, all is well.
Here is his experience.
"I knew the purchase date, share price and settlement date of the shares in question and when they were distributed and when they were DRS.
Given this information they were able to locate the shares I was looking for and advise me how to have the custodian reference them on the phone. And just to add more complete information, though I asked to have those identified shares moved to a separate computer share nonretirement account, I was told this was not possible, but that a separate account would be created upon receiving the request from the new custodian." This has been completed. However, adding the temporary stop to prevent comingling is the optimum method to use.
- Choosing your IRA custodian involves many factors. The first question you should ask is if they are a member of the Retirement Industry Trust Association (RITA).
RITA is the organization that is responsible for the continuing education of all regulated Self-Directed IRA custodians. The best of the best custodians are members of RITA.
Here is the RITA directory that has true non-market participant self-directed IRA custodian for your IRA! True non-market participant self-directed IRA custodians don't hold or trade publicly traded securities so no chance of market fuckery. My true SDIRA custodian is IRA Financial Trust is on the list.
Members Archive - Retirement Industry Trust Association (ritaus.org)
TLDR;
- A True Self-Directed IRA custodian is not a market participant; they do not hold or trade publicly traded securities so no chance of market fuckery.
- Market participants are Brokers, Market Makers, Clearing Houses. Note: IRA custodians that use a broker are also market participants.
- Complete the in-kind distribution and in 3 - 5 business days your shares will be DRS'd and registered in Computershare without the need of a custodian.
- Then, you have 60 days to complete the rollover process with a Self-directed IRA (SDIRA) custodian of your choice (recommend true SDIRA custodian who is not a market participant), and without any tax implications. Note: You are allowed one in-kind distribution rollover per year.
- This is the quickest way to DRS your IRA.
Additional resources:
DIY: How to DRS Transfer Traditional and Roth IRA shares from a brokerage account to Computershare without tax implications
Computershare buy and sell procedures using the true Self-Directed IRA Custodian who is not a market participant
1. In Computershare, limit orders are done online only and only applicable for individual and joint accounts.
2. For security reasons, IRA and Corporate (i.e., IRA LLCs) Accounts are not allowed online transactions
3. Question: What is the procedure for selling shares in an existing IRA account
Answer: Once Computershare receives the request via a letter of instruction with a Medallion Signature Guarantee stamp and in good order, Computershare will process selling the shares in five business days via Market Batch order. Additional two business days for the settlement date of the check. The standard time for you to receive the cheque will take 7-10 business days.
For LLC: A letter of instruction signed by an authorized individual (you as LLC Manager) of the corporation with a Medallion Signature Guarantee stamp. The distribution can be sent via ACH transfer to your LLC bank account
Note: Market batch order processing happens at the end of the day and the price will be the average price for the market day.
4. Question: How can I submit an advance sell order request?
Answer: Computershare has guaranteed 5 days of processing for the sell order request. Knowing that the process will take guaranteed 5 business days of processing, one could send the letter of instruction 5 business days before you wanted it processed and once received by Computershare, that would allow you to essentially send in a 5 day advance request.
5. Question: What is the procedure for buying additional shares in an existing IRA?
Answer:
a. All buy orders are sent by letter of instruction with a Medallion Signature Guarantee stamp to Computershare and a check made payable to Computershare with a dollar amount and the order will be executed as a market batch order. For LLC accounts: A letter of instruction signed by an authorized individual of the corporation (you as LLC Manager) with a Medallion Signature Guarantee stamp along with bank details to Computershare. If bank is in US, ACH transfer can be used from your LLC Bank Account for the buy order. Make sure ACH transfer is authorized for your LLC Bank account.
b. Computershare has implemented a new process whereby Computershare will wait up to three business days after receipt of the check or ACH funds transfer before purchasing shares for optional cash investments. In other words, there is a three business days hold placed on the check or ACH transfer. After the shares are purchased, there will be 2 business days for the settlement of the account. After the settlement date the account shares will automatically appear in your portfolio.
c. The price will depend on what will be the price from the third business day from the date that Computershare processes the request.
6. True SDIRA custodians typically have in-house Medallion Signature Guarantee Stamp.
7. Question: How will I receive my IRA funds distribution?
Answer: If you have an IRA non- corporate account, you will receive a check mailed to your IRA custodian. For LLC accounts: If setup, the funds will be distributed to your LLC bank account via ACH transfer.
Investing with your Self-directed Roth IRA and Roth IRA LLC
Other than life insurance, collectibles, and transactions that involve or directly or indirectly benefit the IRA holder or a “disqualified person,” one can use his or her IRA to make the investments.
A “disqualified person” is generally defined as the IRA holder and any of his or her lineal descendants or ascendants, and/or any entities controlled by such persons. Note – siblings are not considered “disqualified persons.”
However, there is a loosely written first time homebuyer exemption by the IRS that one could use to purchase private property.
https://www.investopedia.com/articles/personal-finance/110415/can-you-use-your-ira-buy-house.asp.
In addition, you can take a distribution of any IRA asset and use for your personal benefit, IRA distribution and IRS rules apply.
Some of the most popular Self-Directed IRA investments are, but are not limited to, real estate, stocks, loans, notes, tax liens/deeds, investment funds, and even cryptocurrency.
Please see my post here for the Roth IRA assets, activities, and distribution flow chart
https://www.reddit.com/r/Superstonk/comments/ub9twl/the_journey_to_drs_my_roth_ira_shares_the_final/
BUY, DRS, AND HODL. Buckle up Apes!
Posted Jul 21, 2022, 9:03 PM UTC · edited