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ADMINISTERING YOUR DIY ACCOUNT

Once you decide how to invest your DIY Account, you need to formalize the transactions with some paperwork. You need to do periodic reporting. You must be mindful that you might owe taxes on unrelated business income. And ultimately, you’ll want to start withdrawing funds. None of these tasks are particularly difficult, and that’s why this chapter will be short!

How Do You Formalize Your Investment Decisions?

Let’s start with a Self-Directed IRA. One of the reasons for having a “custodian” is that this is a person who knows—or should know—how to do most of your legal paperwork. These are the services you’re paying her a fee for. Her responsibility is to make sure your investment decisions follow the law.

When ...

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