Setup fee: paid personally
The plan setup fee is always paid personally, out of pocket. At the time you sign up, your plan does not yet exist, so there are no plan funds available to pay it.
Monthly subscription: your choice
You can pay the monthly administrative fee personally or from the plan. If you prefer to pay from the plan, you can update your subscription to use a debit card held by your plan's entity bank account. You can make that change through your client portal after your account is set up and funded.
IRA custodian transaction fees: your choice
IRA account holders will occasionally encounter transaction fees from IRA Resources for custodial events such as inbound wires, IRA transfers, or Roth conversions. These fees can be paid personally or from the IRA. You specify your preferred payment method when you initiate each transaction with IRA Resources.
LLC compliance costs: paid from the LLC
If your plan includes an IRA LLC, any costs associated with keeping the LLC in good standing must be paid from the LLC itself. This includes state periodic reports and any franchise taxes assessed against the LLC. These are obligations of the LLC as a legal entity and cannot be paid from personal funds.
Investment-related costs: paid from the plan entity
Any expenses associated with acquiring or maintaining plan investments must be paid from the plan entity. This applies to all plan types and covers a wide range of costs: property taxes, insurance premiums, and maintenance expenses on real estate holdings; hardware wallets or exchange fees for cryptocurrency; due diligence or closing costs on a private placement. Paying investment costs personally would constitute a contribution to the plan and could create compliance issues.
Frequently Asked Questions
Can I switch from paying the monthly fee personally to paying it from the plan?
Yes. Once your plan is funded and your plan bank account is open, you can update your subscription payment method in the client portal to use a debit card from your plan's bank account.
What happens if I pay an LLC compliance cost personally instead of from the LLC?
Paying LLC expenses personally can create complications. Those costs are legal obligations of the LLC and should flow through the LLC's bank account. If you have questions about a specific cost, contact support before paying it.
Can I pay investment expenses with personal funds to keep the plan from spending money?
No. Fees and costs directly related to a plan investment must be paid from the plan entity. Paying them personally could be treated as an unauthorized contribution, which can have tax and compliance consequences.