Your account application with our partner bank is prepared for you as part of plan setup. What follows is what a bank asks for and why, which matters most if you open the account at an institution you choose yourself.
What type of account do I need?
You need a trust account or commercial account, not a personal retail account. The trust is a separate legal entity with its own EIN, and the bank account must reflect that separation.
Terminology varies by institution. Some call these trust accounts, others call them commercial or business accounts. The concept is the same: an account for an entity rather than for an individual.
What documents does the bank need?
You will provide either your complete Trust Agreement or a notarized Certificate of Trust. The Certificate of Trust is a condensed version showing the trust's name, date, trustees, and powers, without reproducing the full trust provisions.
Many banks accept the Certificate of Trust because it is shorter and easier to review. Some require the full Trust Agreement. Ask which the bank prefers before you apply.
You will also need the trust's EIN, which confirms the trust's tax identification number.
Who signs for the account?
You sign as trustee. You are opening the account on behalf of the trust, not as an individual depositor.
The bank will verify your identity through standard "Know Your Customer" procedures: photo ID, address verification, and the usual account opening paperwork. Your signature authority comes from your role as trustee, documented in the Trust Agreement or Certificate of Trust. The bank may ask to see the section granting that authority.
Where the opening deposit comes from
Every dollar that enters this account must originate from plan funds. You cannot make an opening deposit from personal money, even a small one, and even if the bank asks for it as a condition of opening the account.
If an institution requires a personal deposit to open, that requirement cannot be met and the account cannot be opened there. Funding arrives from the IRA once the account exists.
What banking services can I use?
You can access standard banking services: checks, debit cards, online banking, mobile banking, wire transfers, and ACH transactions.
Credit instruments are the exception, and the caution here is firm. The trust cannot accept a credit card, line of credit, overdraft protection, or any other feature that extends credit to the account. Each of these requires your personal guarantee, and a guarantee is an extension of credit between the plan and a disqualified person, which IRC Section 4975 prohibits.
Banks offer these products routinely at account opening, often as a package. Decline them at the point of offer rather than accepting and unwinding later.
Frequently Asked Questions
When can I open the bank account?
Once you receive your trust documents. That delivery includes the Trust Agreement, the Certificate of Trust, and the trust's EIN, which together are everything a bank will ask for. Most trusts are formed and executed within a few days of the initial application.
If there is a co-trustee, will they need to sign?
Only if you want them to have signing authority on the bank account. A co-trustee who will transact on the account provides their personal information to the bank and signs the account agreements alongside you. Bank signing authority is a separate matter from the co-trustee designation in the Trust Agreement, so naming someone as co-trustee does not by itself put them on the account.
What if I need to make changes to signers later?
Provide an amended Certificate of Trust or a trustee resolution to the bank showing the updated authorization.
Can the trust hold more than one bank account?
Yes. A trust can hold multiple accounts, which some account holders use to separate operating cash from funds reserved for a specific purpose.