Adopting a Method to Comply with the Rules
It’s going to take you a few weeks to get set up and make your investment, but most likely your SDRA will hold the investment for much longer — perhaps years. During that time, you may confront questions and issues to which you don’t know the answer.
For example, many SDRA investors are occasionally confronted with potential prohibited transactions. For example,
- Your tenant calls with a broken toilet on the weekend and your plumber isn’t available. Should you fix it yourself?
- Your IRA’s tenant has been refusing to pay rent for months and finally hands you a check — but the check is made out to you. Do you deposit the check? Where?
- What happens if the law changes and you aren’t aware of it? How could that affect your investment?
Who do you call with these questions?
- You may be reluctant to call your attorney because of the cost.
- Your SDRA custodian won’t answer your question because they don’t (and can’t) give legal advice.
- Do you have any friends who know all about it? Are you sure they know all about it? How would you determine that they were qualified to answer your question?
It’s important to keep well educated about the evolving issues in the field.
Our SDRASafeguard™ Service is designed to help you keep informed, provide a knowledgeable resource to answer your questions, and manage your account so you don’t have to do it all yourself and deal with “800 numbers.”