Self-Directed IRA Services
A Self-Directed IRA lets an account holder invest retirement assets outside the public markets, such as real estate, private loans, private companies, limited partnerships, private funds and other alternative investments, through a specialty custodian that can hold these assets.
What many account holders find most challenging is not the investment itself, but the paperwork, transaction requirements and ongoing coordination with the custodian. SkyOak Capital helps handle that part.
As a designated representative on the account, SkyOak can assist with opening the account, preparing and submitting transaction documents, monitoring activity and serving as a point of contact between the account holder and the custodian.
Depending on the client relationship, the investment may be selected by the account holder or recommended by SkyOak as part of the client’s broader investment strategy. In either case, our Self-Directed IRA Services help clients navigate the specialized requirements involved in holding alternative investments within a retirement account.
Self-Directed IRA Services are led by Damien Rennie, Senior Wealth Advisor & Director of Employer Retirement Plans and Self-Directed IRA Services, from our Medford, Oregon office.
What Can a Self-Directed IRA Hold?
A Self-Directed IRA can provide access to a broader range of investments than a traditional brokerage IRA. Depending on the custodian and the investment, assets may include:
- Investment Real Estate — Rental properties, land and other investment real estate held directly by the IRA.
- Deeds of Trust & Promissory Notes— Private lending arrangements in which the IRA owns the note or deed of trust and principal and interest payments are made back to the IRA.
- Private Companies & Private Equity— Investments in privately held businesses and private equity opportunities.
- Limited Partnerships & Private Funds — Interests in limited partnerships, private equity funds, real estate funds, hedge funds and other private investment structures.
- Cryptocurrency & Digital Assets— Certain digital assets when supported by the Self-Directed IRA custodian.
- Certain Precious Metals— Qualifying coins and bullion that meet applicable IRA and custodial requirements.
- Not every custodian will hold every type of alternative asset, and some private investments may be available only to investors who meet accredited investor or other eligibility requirements.
How SkyOak Capital Helps
Depending on the assets held in the account, our services may include:
- Account Setup & Transfers — Coordinating the establishment of the Self-Directed IRA and transfer or rollover of retirement assets to the specialty custodian.
- Investment Transaction Paperwork — Preparing and submitting custodian documents for investments directed by the account holder.
- Real Estate Administration — Coordinating custodian paperwork for purchases, property expenses, rental income and sales involving IRA-owned real estate.
- Private Notes & Loans — Coordinating documentation and helping monitor payments associated with promissory notes, trust deeds and other private lending investments.
- Private Investments— Coordinating custodian requirements for investments in privately held companies and other eligible private investments.
- Valuations & Account Requirements— Helping coordinate required asset valuation documentation and other custodian requirements.
- Ongoing Custodian Coordination — Monitoring transactions and communicating with the custodian to help keep account activity moving.
SkyOak does not have discretion over the account’s investments and does not move or invest assets without the account holder’s direction.
Understanding Self-Directed IRA Rules
Self-Directed IRAs provide significant investment flexibility, but they are also subject to important IRS rules regarding prohibited investments and transactions with certain individuals or entities.
For example, an IRA owner generally cannot personally use real estate owned by the IRA or use IRA assets for personal benefit. Transactions involving certain family members and other disqualified persons can also create prohibited-transaction issues.
These rules can be complex, particularly with real estate, private loans and privately held investments. Part of SkyOak’s role is helping clients navigate the administrative requirements of holding these assets within a Self-Directed IRA and recognize situations that may require additional tax or legal guidance.
When necessary, we coordinate with the client’s CPA, attorney and Self-Directed IRA custodian to help ensure the transaction is handled appropriately.
The Custodian’s Role
Self-Directed IRA assets are held by a qualified custodian. The custodian holds the account and its assets, processes transactions at the direction of the account holder, provides account reporting and performs required custodial functions.
SkyOak works with the custodian on the client’s behalf to help coordinate the paperwork and ongoing activity associated with the account.
Who This Is For
Self-Directed IRA Services may be appropriate for investors who already know what they want to own inside their retirement account but want help navigating the administrative requirements of holding alternative assets.
This may include real estate investors, business owners, private investors and individuals holding private loans, privately held companies or other alternative investments inside an IRA.
Investment Advice Is Separate
Under SkyOak’s Self-Directed IRA service agreement, the account holder—not SkyOak—selects and directs the investments.
Clients who want investment advice or investment management from SkyOak may engage the firm separately for those services. Keeping the two roles separate makes it clear when SkyOak is providing administrative support and when it is providing investment advice.
Fees
Self-Directed IRA service fees are based on the assets being serviced and the scope of the engagement. Custodial and other third-party fees are separate.
Complete information about SkyOak Capital’s Self-Directed IRA service fees is available on our Fees page and in the firm’s Form ADV.
Your Advisor
SkyOak Capital’s Self-Directed IRA Services are led by Damien Rennie, Senior Wealth Advisor & Director of Employer Retirement Plans and Self-Directed IRA Services, from our Medford, Oregon office.
Damien works with Self-Directed IRA clients to coordinate account setup, transactions, alternative asset documentation and ongoing custodian requirements.
FAQs
Questions About Self-Directed IRAs
Does SkyOak Capital choose the investments in my Self-Directed IRA?
No. Under the Self-Directed IRA service agreement, you select and direct the investments. SkyOak helps coordinate the account, paperwork, transactions and communication with the custodian. Investment advice or investment management from SkyOak is provided under a separate agreement.
Can I hold real estate in my IRA?
Yes, a Self-Directed IRA can hold investment real estate, subject to applicable IRA rules and custodian requirements. Personal use of IRA-owned property by the account owner or certain disqualified persons can constitute a prohibited transaction.
SkyOak helps coordinate the custodian paperwork associated with purchasing, holding and selling IRA-owned real estate.
Can I move an existing IRA or old 401(k) into a Self-Directed IRA?
Retirement assets may generally be transferred or rolled over to an appropriate Self-Directed IRA, depending on the type of account and circumstances. SkyOak can help coordinate the account and transfer paperwork.
Whether a rollover is appropriate is a separate planning decision and should be evaluated based on the client’s circumstances.
Can I invest in a private company or make a private loan?
Self-Directed IRAs may hold certain private-company interests, promissory notes and other private investments, subject to applicable IRA rules and the custodian’s requirements.
SkyOak can help coordinate the documentation and transaction process but does not select or recommend the investment under our Self-Directed IRA service agreement.
Is a Self-Directed IRA a good idea?
A Self-Directed IRA can provide access to investments that may not be available in a traditional brokerage IRA, but alternative assets can involve additional investment risk, administrative requirements, valuation issues and tax considerations.
Whether a Self-Directed IRA is appropriate depends on the investor, the assets being considered and the overall retirement strategy.