Self-Directed IRA Cost and Fees – Full Comparison

Here is a Cost Comparison of Broad Financial’s IRAs:

To see a comparison of Self-Directed IRA structures, please scroll below.

Self-Directed IRA Fee Structures

When researching Self-Directed IRAs, you’ll find that there are three basic fee structures:

1. Transaction Fees. In this model there is a low set-up fee, and the account holder pays a transaction fee for every action subsequently taken by the IRA.
2. Dollar value of assets that the IRA possesses. The more assets that are held, the higher the annual fee.
3. Checkbook Self-Directed IRA. There is a higher initial set-up fee, but there are virtually no fees afterwards.

Obviously everybody would like to choose the fee structure which affords them the greatest possible savings. However, even with that thought in mind, it’s not always so obvious which of the three fee structures will accomplish that. A number of factors can determine how much is eventually charged, and they include value of the invested assets, frequency of transactions, and degree of investor involvement. It’s best to run the numbers for your specific investment and see what makes the most sense.

How Much Does a Self-Directed IRA Cost – Practical Application

To get a better grasp of the situation, let’s take a look at a standard self-directed IRA investment, and then figure out what it would cost in fees for each of the three models.

Donna switched jobs and took the opportunity to rollover her 401(k), wishing to find the best Self-Directed IRA for real estate. She wanted to use her retirement funds to purchase a two family house at the cost of $450,000 and then subsequently rent it out. Property management includes paying standard bills (electric, water, etc.), grounds maintenance (mowing and snow removal), and taking care of the occasional plumber call. Additionally (as with most properties), the house needed some initial rehab before being put on the rental market.

In this scenario, the fees would break down as follows. (These dollar values are taken from the industry’s leading provider for each platform.) Take a look below at a Self-Directed IRA cost comparison:

As the table indicates, the Self-Directed IRA model with the lowest cost long term is the LLC setup with Checkbook Control. Learn more about Broad Financial’s Ultimate Self-Directed IRA with Checkbook Control and no transaction fees, and get yourself set up with the best Self-Directed IRA option!

Check out the following:

• More on Self-Directed IRA custodian fees comparison with Checkbook Control
• How our sister company Madison Trust will passively act as your Self-Directed IRA custodian
• Broad Financial’s Checkbook IRA LLC reviews

And learn more about Self-Directed IRAs with the following info:

• Self Directed IRA vs. Solo 401(k)
• Broad Financial’s Ultimate Bitcoin and Cryptocurrency IRA
• Having Bitcoin or any Cryptocurrency in your IRA or 401(k)