Entrust Learning Center > Keyword: self directed ira > Investing In Futures and Commodities with a Self Directed IRA

Investing In Futures and Commodities with a Self Directed IRA

IRA Futures and Commodities Accounts are for clients of Entrust who have or are considering Futures / Commodities investments as part of their comprehensive asset holdings.

This information includes procedures we use to assure the accurate maintenance of records, and the efficient and timely processing of investments and related documentation.

Investing in Futures and Commodities with Retirement Funds

Individuals with various investment objectives and levels of desired risk may include Futures and Commodities in their self-directed traditional, Roth, SEP or SIMPLE Individual Retirement Accounts. Entrust and its custodial institutions do not warrant the suitability of any investment.

Please consult with a tax accountant, attorney and investment advisor to see if Futures and Commodities are suitable for your investment portfolio.

You are permitted up to 70% of the balance of your account to be invested in Futures / Commodities. The 30% is not eligible, now or in the future to be invested in Futures / Commodities. This includes funds used to open the account, and all subsequent deposits, including additional contributions, rollovers and transfers.

Those funds not invested in Futures / Commodities may be invested as you choose in what we generically call 'liquid' investments, such as, certificates of deposit, money market accounts, treasury securities, or may be kept in your choice of FDIC insured accounts, which pay interest on a monthly basis.

Entrust Fees

There is a $50.00 fee for opening an account, and annual administration fees based on the asset value in your account. The minimum annual fee can be found in our fee agreement.  To find the fee agreement, simply choose "locations" from the top menu bar, select a location and choose "downloads and forms" from the left menu bar.  Scroll down to find the Entrust fee agreement on this page.

You may pay fees by check, American Express, VISA or Mastercard. You may also have fees deducted from your cash account. If there is insufficient cash in your account, your investments may be sold at market value, which may be more or less than your cost basis.
Opening, transferring or rolling over to an Entrust IRA

• Download the IRA forms kit or have them mailed to you from our office.
  
• Complete the Application and Transfer/Rollover Form and return to Entrust. Please note that transferring funds or other assets from another Custodian/Trustee to Entrust can be a lengthy process, one which Entrust has no control over. Some Custodian/Trustees take more than 30 days to complete the transfer of funds to your Entrust account. Often your current Custodian/Trustee will not provide any information as to the status of transfer. If time is of an issue, please contact your existing Trustee or broker, requesting they expedite your transfer request.
  
• Complete the Buy Direction Letter and return when you are ready to begin trading. You must designate a broker for your account and what the amount or percentage your initial investment will be.
• All contributions/deposits to your account must be sent directly to Entrust, and upon your direction will be forwarded to your broker or FCM (Futures Commission Merchants) for your futures investment. Do not send funds directly to your broker or FCM to be credited to your investment account.
  
• Upon receipt of your funds, your investment will generally be completed in about two days. If documentation is incomplete of missing, the timing will be different. Wire transfers to fund investments or margin/debit calls, and express delivery of documents is available upon client request.
• All liquidations or distributions from your futures investment must be sent directly to Entrust, and upon your direction (with the completion of an Entrust distribution request form) will be forwarded to you as a distribution.
• All deposit and withdrawal transactions must be generated by Entrust as part of your retirement account. Sending funds directly to, or receiving funds directly from your broker or the FCM will create IRS tax liabilities, and doing so may disqualify the tax exempt status of your IRA.
• Entrust does not warrant the suitability of any investment, please check with your tax and investment advisor to see if (Futures/Commodities) are suitable for your investment objectives. The above information is provided to assist the individual with a general understanding of the Entrust self-directed IRA Futures/Commodities program. For complete disclosure of all conditions and fees applicable to the account, please read both the Trust and Adoption agreements, and all related forms supplied with them.
• Please be sure that all paperwork is complete and properly executed. Incomplete or missing documents will cause delays in document processing and additional processing fees may be assessed.
  

Funding of Margin and Debit Calls

Pursuant to your irrevocable instructions, funds in your Entrust money market account, or "liquid" investments held in your account, are subject to calls, at the request of the broker or FCMs (Futures Commission Merchants).

If there is not sufficient cash in your account, we will sell your investment(s) at market value, which may be more or less than your cost basis. The funding of calls or the sale of the applicable investments are subject to broker and/or Entrust transaction fees.

Funds previously sent to the FCM to cover margin or debit calls may be recalled by us is in the event your (Futures/ Commodities) account value increases.

Statements

Entrust sends a quarterly statement. Please refer to your broker or the FCM statement you receive for the most current information about your transactions and account status. Statements may also be requested online.

Contact your broker directly with questions, about completing (Futures / Commodities) applications, broker commissions or performance of your (Futures / Commodities) investment.

Information for Brokers and Futures Commission Merchants

Introducing Brokers (IB), Futures Commission Merchants (FCM) should submit all original documents with original signatures, including the signature page. We will deliver the appropriate original or copied forms to you. We must receive the originally signed investment direction forms.

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