Step 1: Send funds from the Trust to the IRA
Write a check or initiate a wire transfer from the trust bank account to the custodian (IRA Resources). Include a completed Sell Direction Letter (SDL) with the transaction. If paying by check, mail the SDL and check together. If wiring funds, upload the SDL through the IRA Resources secure upload portal.
The SDL instructs the custodian to record the transaction as a liquidation of the IRA's investment in the trust, whether full or partial, the same way selling a position in a fund would be recorded in a conventional IRA.
Step 2: Request your distribution
Submit a Distribution form to request that the funds be paid out to you once the custodian has processed the deposit. If you sent a check in Step 1, you can include the Distribution form in the same envelope. If you wired funds, wait for the wire to clear and be credited to your IRA account before uploading the Distribution form. The custodian will issue the distribution, handle the required IRS reporting, and withhold taxes if you request it.
Critical: Do not skip the custodian
Never write a check directly from the trust bank account to yourself. The custodian is responsible for issuing the 1099-R that reports the distribution to the IRS. Bypassing the custodian breaks that reporting chain and could result in the distribution being treated as a taxable event outside the plan, with potential penalties.
Timing
The full process typically takes two to three weeks when using checks for both transfers. Using wire transfers at either step can shorten the timeline but will add fees. If you are meeting an RMD deadline, begin the process no later than December 1 to ensure completion before December 31.