Private Entities in your Quest Trust Company IRA

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
The first step in funding this transaction is to make sure you have the vesting for the private placement/private entity correct on the documents. It’s very important these documents show that the investment is in the name of the IRA, not you as the client, thus the IRA will need to be named and vested to hold the asset. Any subscription agreements/operating agreements must be vested as follows:

  • Purchaser/Subscriber Name: Quest Trust Company FBO  (Acct Holders Name) IRA # (Acct #)
  • Tax ID  # 61-1435085Which will substitute for your Social Security number 
  • Address: 17171 Park Row STE 100, Houston, TX 77084
Items Needed For Funding

You will also need to submit Quest Trust Company’s internal forms :

  1. Direction of Investment for Private Entity -located in your Client Portal
  2. 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.

Maintenance of Private Entities

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.

Resources

Resources:

Here are some additional resources for you as you complete your private entity investment

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.