Am I allowed to invest in a private stock or private business?
You are allowed to invest in a private business and/or private stock as long as your personal (non-IRA) interest in the organization does not exceed 49%.
Can I borrow from my IRA?
No. This would be a prohibited transaction under Internal Revenue Code Section 4975.
Can Entrust give me investment advice?
No. Entrust does not affiliate itself with or make any recommendations to any person or entity associated with investments of any type, nor does it provide investment advice or endorse any products.
How do I know if an investment I want to make is acceptable in my Entrust SDIRA?
While Entrust can provide you the fundamental guidelines as to what is and is not acceptable, you should speak with your professional tax or financial advisor on more complex transactions.
How fast can my investment be funded?
Once your funds are cleared, purchases are generally funded within two to three business days. Funds received by wire are generally available within 24 hours; funds received by check take five days to clear. Upon account establishment, please note that the IRC requires you be provided with a seven day right of revocation, thus requiring that a minimum of seven days pass from the date of account establishment before you can make a purchase. So it can be advantageous to establish your account even before you are ready to make your specific investment decision.
May I partner with my IRA to make an investment?
Yes, as long as you do not have a present or previous ownership interest in the investment.
What account is best for me to open? What are the differences?
Please consult with your CPA or financial advisor for the different types of accounts that may be best for you.
What are my investment options?
The Internal Revenue Code only specifies what investments are prohibited within an IRA, these being antiques, collectibles, and life insurance. Laws governing S corporations prohibit your IRA from investing in those too.
What are the basic 'individual' retirement account types?
A Traditional IRA, Roth IRA, SEP IRA, and SIMPLE IRA.
What documentation is needed to make an investment?
Documentation will vary depending upon the asset being purchased. However, the documentation required will be the same as if you were purchasing the asset in your non-retirement account.
What investments are not allowed in my IRA?
IRAs are prohibited from investing in antiques, collectibles, life insurance and S corporations (the latter are prohibited under S corporation laws).
What is a Beneficiary IRA?
This means the original IRA-holder has died, and the person who had been named Beneficiary elects to maintain that IRA rather than taking the (taxable) distribution of it.
What kind of investments are allowed?
Investments not prohibited by the IRS or law. Please consult with your financial or legal advisor regarding a specific investment.
Which account is the Self-Directed IRA?
All Entrust accounts are self-directed.
How are self-directed plan assets valued?
To comply with the IRS requirement, plan assets must be valued at fair market value, not cost. A Fair Market Value (FMV) is an estimate of the market value of a property or asset, based on what a knowledgeable, willing, and unpressured buyer would likely pay to a knowledgeable, willing, and unpressured seller in the market.“Hopefully, your asset value has grown,” Simon said. “But it could have gone up or down since the purchase.”
Who is allowed to complete the Fair Market Valuation Form?
To properly report the FMV of an asset, a qualified professional who is independent of any personal relationship with you must complete the form in most cases. This can be a certified appraiser, licensed real estate professional such as broker or agent, attorney, financial planner or CPA. The main rule is that this person is an “arm’s length” away from both you and the investment. Learn more about disqualified persons below. Note: The form must be signed and dated by both you and the valuator. “It will be returned to you for proper completion if it is not filled out properly,” Simon said.
Do I need to mail back anything else along with the FMV Form?

If you hold more than one asset within your self-directed account, please complete one form for each asset. Also, each form must be sent back with supporting documents. For real estate assets, that may include a real estate fair market value analysis, more commonly referred to as a comparative market analysis (CMA). This is a detailed report examining the homes currently on the market, under contract, recently sold and recently expired, withdrawn or canceled. It determines what a property is worth in the current market. For  investments that you may have deemed “worthless” or “lost,” contact Entrust for questions specific for your account. If these assets are to be removed from your account, indicate the status and value on the Fair Market Valuation Form and sign it yourself. In this instance, you will not need a qualified, independent professional to perform the valuation. You will, however, need to provide documents that will support the status and value to remove them from your account. These can be:

  1. Tax Form 1099-C (Cancellation of Debt).
  2. Deed in lieu of Foreclosure or a copy of the recorded Trustee’s Deed (for defaulted mortgage).
  3. County’s recorded Tax Deed (for defaulted property taxes).
  4. A “cease and desist order” from an entity such as the SEC or a similar state agency.
What else do I need to know about fair market valuations?

They are also required when taking an in-kind asset distribution, converting, and recharacterizing an asset. An appraisal is also required on these types of transactions to determine the fair market value. The appraiser does not have to sign the FMV Form and the appraisal report is sufficient.

What happens if I do not turn in my Fair Market Valuation Form?
Please note that the IRS requires annual valuations. Entrust is required to obtain the most current fair market value available for the investments in your account at least once a year. If we do not receive the Fair Market Valuation Form, we will report the last known value of the assets in your account. “If you ever get audited, the value of your asset could be called into question if you haven’t provided an annual valuation,” Simon said.
Who pays for this valuation?
Your account does. If your account does not have sufficient un-directed cash to cover the cost, you will have to add cash to your IRA by making an annual contribution (if eligible), transfer from other IRAs, or rollover funds from another custodian to pay for the valuation service.