Congratulations on Taking Control of Your Retirement!
Self-directed IRAs are perfect for private entities! Private placements – such as LLCs, limited partnerships, joint ventures, private stock, etc. – can be very lucrative. Whether you are investing in a private entity that is buying large real estate holdings or the entity is a business start up, there are countless possibilities with self-directed IRAs. Here are the procedures on how to purchase these private alternative assets in your IRA at Quest.
Please see below for information on purchasing a private entity with your IRA.Funding Private Entities
- Purchaser/Subscriber Name: Quest Trust Company FBO (Acct Holders Name) IRA # (Acct #)
- Tax ID # 61-1435085– Which will substitute for your Social Security number
- Address: 17171 Park Row STE 100, Houston, TX 77084
You will also need to submit Quest Trust Company’s internal forms :
- Direction of Investment for Private Entity -located in your Client Portal
- Private Placement Instruction Letter -located in your Client Portal
Along with our internal forms for the private placement/private entity, we will need the PPM, Subscription Agreement, Operating Agreement, LLC, LP, JV, etc…, before we can generate a check or wire for the funding of the investment. It is up to the client to determine if the private placement/private entity investment complies with the applicable state & federal laws.
What to know after funding of your private placement/private entity with Quest:
Fair Market Value of your investment will be requested for every calendar year your self-directed IRA owns the asset. We will require a Fair Market Valuation Form. Clients can submit this form in the Client Portal!
Payoffs – When the investment is ready to pay off, the client will need to fill out a Verification of Payoff or Disposition of Asset Form for Quest Trust Company’s records.
Sell Asset – Should the asset be sold to another investors, you will want to fill out the Direction to Sell Form for Quest Trust Company’s records.
Here are some additional resources for you as you complete your private entity investment
- Watch tutorials on our Youtube page!
- Investor Awareness: Due Diligence with Private Entities
Submit Investment Documents:
DISCLAIMER: Quest Trust Company does not render tax, legal, accounting, investment, or other professional advice. If tax, legal, accounting, investment, or other similar expert assistance is required, the services of a competent professional should be sought.