Understanding Self-Directed IRA Fees

Set Up Fee

Most custodians have a one time set up fee for establishing your account. This fee can range from $50 to $300 depending on the custodian or provider. It can also vary depending on your investment types. Providers that create LLCs are usually higher in cost. You should also take into account any annual LLC expenses. By the way, it's not required to create an LLC to invest in real estate.

Annual Fee

Custodians charge an annual fee based on the asset type or its value, others may provide an "all inclusive" fee but still charge additional transaction fees. Make sure you read the fine print.

Transaction Fees

Transaction fees include buying, selling, transferring funds, check requests, etc.



When it comes to real estate, there is a fee to purchase the property, wire of funds, and some custodians also charge a fee for making the earnest money deposit (EMD). Find out what's included in the purchase fee.