Setting up an IRA Trust is faster and simpler than most people expect. Most clients are fully set up and ready to invest within 2 to 4 weeks of completing their application, with IRA funding timelines being the primary variable. Here is how the process works, phase by phase.
Phase 1: Application
The process starts with a 10-minute online application. You will need a government-issued photo ID and at least one designated IRA beneficiary. If your address does not match your ID, have a recent utility bill or bank statement available as proof of address.
Once your application is submitted, our team reviews it and initiates the next two phases simultaneously: opening your IRA account at the custodian and preparing your trust documents.
You handle: Completing the online application, providing ID and beneficiary information. We handle: Review, custodian submission, and trust preparation.
Phase 2: IRA account opening
Your IRA is held by IRA Resources, our exclusive custodian partner. We securely submit your IRA account application on your behalf using the information you provided during signup. You complete one application, not two.
IRA Resources will send you a welcome email with account details and additional signature requirements. The IRA is the tax-advantaged owner of the trust. All funding flows into the IRA first, then the IRA invests into the trust to establish the Checkbook Control relationship.
Once your IRA account is open, you can initiate the funding process immediately. Trust document preparation and IRA funding proceed in parallel, so starting early can shorten your overall timeline.
You handle: Responding to any custodian signature requests promptly; initiating your rollover or transfer as soon as your IRA account number is issued. We handle: Custodian submission and account setup coordination.
Phase 3: Trust document preparation
The IRA Trust is a private legal document governed by the laws of your state of residency. We prepare a customized trust agreement that names you as the Trustee and documents the IRA as the trust's funding source. You review and sign the trust agreement electronically.
We also obtain two Employer Identification Numbers (EINs) for the plan: one for the IRA itself (used for tax reporting on W-9s and 1099s) and one for the trust entity (used to open bank, brokerage, and exchange accounts). The distinction matters when you begin opening financial accounts, and we will walk you through which EIN to use and when.
You handle: Reviewing and signing the trust agreement; signing IRS Form SS-4 authorizing us to obtain the plan EINs on your behalf. We handle: Trust document drafting, IRA EIN, and Trust EIN.
Phase 4: Bank account setup
Once your trust documents and EINs are in hand, you open a business checking account in the name of your trust. You choose the bank. Almost any institution that opens business accounts will work, and we can recommend a few banks with experience handling self-directed retirement plans.
To open the account, the bank will ask for your trust agreement and the Trust EIN. You present yourself as the Trustee and authorized signer. The account name should match your trust name exactly.
This is your Checkbook Control account. Once it is funded, you direct investments from it without involving the custodian for each transaction.
You handle: Selecting a bank, opening the account, providing trust documents. We handle: Providing the trust agreement and EIN documentation you need to present.
Phase 5: Funding the IRA
This phase controls the overall timeline. You can start the funding process as soon as your IRA account is set up. You do not need to wait for trust documents or bank account setup to be complete.
Funding moves from your existing retirement account into the IRA at IRA Resources. Once the IRA is funded, you submit a Checkbook Control Buy Direction Letter (BDL) to IRA Resources instructing them to invest the IRA funds into your trust. IRA Resources processes the BDL and transfers the funds to your trust checking account. At that point, your account is funded and ready to invest.
Important: funds must go through the custodian. Do not deposit rollover or transfer proceeds directly into your trust checking account.
Typical funding timelines by source:
- New IRA contribution: Clears in roughly one week.
- IRA-to-IRA transfer: Typically 2 to 3 weeks, depending on how quickly the sending custodian processes the request.
- Employer plan rollover (401(k), 403(b), profit-sharing): Generally 2 to 4 weeks.
- Government plan rollover (457, TSP): Generally 4 to 6 weeks.
You handle: Initiating the transfer or rollover with your current custodian; making contribution deposits if applicable; submitting the Buy Direction Letter to IRA Resources. IRA Resources handles: Processing the Buy Direction Letter and funding your trust checking account.
Phase 6: Your first investment
With funds in your trust checking account, you are ready to invest as you choose. You sign agreements, write checks, and wire funds directly as Trustee. No custodian approval is required for individual investments.
Phase summary
| Phase | Who Initiates | Typical Timeframe |
|---|---|---|
| Application | You | Day 1 |
| IRA account opening | We submit; IRA Resources opens | 1 to 2 business days |
| Trust formation and EINs | We handle | 2 to 3 business days |
| Bank account setup | You | 1 to 3 business days after documents are ready |
| IRA funding | You initiate; IRA Resources processes | 1 to 6 weeks depending on source |
| First investment | You, as Trustee | Immediately after trust is funded |
Plan ready to invest: 2 to 4 weeks in most cases.
A note on your data
The information you provide during application is used solely to set up your plan. Once setup is complete, we delete non-essential application data, including copies of your photo ID, from our systems. Your ongoing account information is retained as required to service your plan.
Ready to get started?
The Application takes 10 minutes or less. Once submitted, setup begins the same business day.
Disclosure
This information is provided for educational purposes only and should not be interpreted as tax, legal, or investment advice. Readers are encouraged to consult a qualified professional who can offer guidance based on their personal situation.