Understanding IRA Custodians: Services and Options

If you have an IRA account, then you are legally obliged to have IRA custodians to administer those assets. Any IRA account must be held by a custodian. The custodian can be large corporations, such as banks, credit unions or trust companies. It can also be an entity that is licensed by the IRS and known as a non-bank custodian. These offer different types of services to the IRA owner.

Bank Services

The most common services that banks offer is an online management for your IRA account. They will also arrange for the movement of finances and ensure that your IRA runs properly. On the downside, you can expect to pay a lot for this kind of assistance because IRA custodian fees from banks are high.

Non-Bank IRA Custodians

Another option is to choose a non-bank custodian. These will usually be private companies. They may or may not offer services such as online management, but you should be able to contact them by phone or the Internet. Non-bank IRA custodians must be checked to ensure that they are registered with the IRS.