What does an IRA custodian do?
Federal law requires that all IRA accounts be held by a qualified custodian, such as a bank, trust company, or brokerage. The custodian's role is administrative: they hold the IRA account, process IRA-layer transactions such as contributions, rollovers, and distributions, and report account information to the IRS annually on Form 5498.
In a checkbook control structure, the custodian's day-to-day involvement is intentionally minimal. IRA Resources holds your IRA and documents the IRA's investment into your LLC or trust, where all investment activity takes place. Your entity handles investments directly, without requiring custodian approval for each transaction.
How do Self-Directed Plans and IRA Resources work together?
The two companies play distinct roles. Self-Directed Plans creates your plan structure, including the legal entity, plan documents, and supporting resources. IRA Resources holds the IRA account that funds the entity. Neither company makes investment decisions on your behalf.
When you apply through Self-Directed Plans, we initiate the IRA Resources account application on your behalf using the information you provide. You then complete the IRA application and identity verification directly with IRA Resources to open the account. Once open, you will interact with IRA Resources for contributions, rollovers, distributions, and other IRA-layer transactions. For questions about your plan structure, documentation, or investments, support flows through Self-Directed Plans.
Does this apply to Solo 401(k) plans?
No. A Solo 401(k) is not required to use an IRA custodian. As the plan trustee, you hold plan assets directly in the plan's own bank and brokerage accounts. IRA Resources is the custodian for IRA-based plans only.