How to Deposit Income from an Asset into Your Account

Depositing income from an IRA-held asset back into the retirement account is crucial for SDIRA holders. 

By properly depositing the income back into the SDIRA, account holders can maintain the tax-advantaged status of these funds. Withdrawing income from the SDIRA before retirement could trigger taxes and potential penalties, which can significantly reduce the overall value of your retirement portfolio.

In this article, we’ll walk you through a step-by-step guide to correctly depositing income from an asset back into your Entrust account.

1. Send Delivery Instructions to Your Investment: Download Entrust’s Delivery Instructions. This form provides specific funding instructions based on your chosen deposit method (ACH, wire, or check) to ensure income from your investment is correctly deposited into your IRA.
   • Note: Since Entrust is not a bank, we cannot pull the funds on your behalf. The investment must initiate and push the funds to Entrust. Funds can be sent via:
     • ACH: Free
     • Check: Free
     • Wire: $30 fee
2. Submit a Deposit Coupon Form: Download and complete Entrust’s Deposit Coupon form. 
   • While following the Delivery Instructions ensures funds are sent to your IRA, the Deposit Coupon Form specifies how those funds should be recorded (e.g., contribution, income, loan repayment). Both forms are essential for accurate recordkeeping and to ensure your deposit is correctly classified.
   • Notes for Completing the Form:
     • Section 2: Depending on the type of asset generating the funds, complete the appropriate subsection:
       • Section 2A: If the funds are coming from an investment property
       • Section 2C: If the funds are coming from private equity
       • Section 2D: If the funds are coming from an unsecured promissory note
     • Section 3: You only need to provide the dollar amount, the method of payment (check, wire, or ACH), and the sender’s name. You do not need to fill out the ACH Payment Notice details.

What Happens Next?

Once you’ve completed the form and the funds have been received, Entrust will deposit the funds into your account. 

By following these steps, you can easily deposit income from an asset into your Entrust account.