Selecting a Custodian or IRA Facilitator

What is the difference and which is best for you?

Whether you open your Self Directed IRA through a facilitator or a custodian, any idle funds in your IRA will most likely be held in an FDIC insured account. FDIC insurance for retirement accounts covers the first $250,000 of cash.  (Few people leave large sums of idle cash in their Self Directed IRA. If you plan to keep more than $250,000 of idle cash please let us know so we may secure additional insurance for your funds.)

Custodians: Every IRA must have a custodian. An IRA custodian is the independent pair of hands that holds the assets of your IRA. Custodians are regulated as Trust Companies by either a state or federal bank regulator.

Due to their status as a Trust Company, custodians are severally limited when providing guidance, direction or even basic retirement optimization ideas to their clients. Outside of being unable to accept prohibited transactions in an IRA, the custodian generally stands mute.


Facilitators: The facilitator represents the Self Directed IRA owner. Facilitators can help the client determine the best type of IRA for their financial goals. They may also provide investment commentary. Facilitators can provide information regarding IRA distributions which may improve tax efficiency thus leaving more money for the IRA owner.  Facilitators can help set up special purpose LLCs that may give extra earning opportunities to a self directed IRA.

* The IRA Club is a Facilitator. The IRA Club uses only FDIC insured custodial accounts for its client’s IRA’s.