Using DRIPs and DSPs in Self-Administered IRAs
The option that will likely give you the most control and flexibility is to set up a self-administered IRA through a broker or other IRA administrator, who can assist you with investing using DRIPs and DSPs.
Because an IRA requires a trustee, such as a bank, mutual fund company, or brokerage firm, you must find a custodian for your account that will permit the reinvestment of dividends on securities that you hold directly. If your broker won’t do it—and many won’t because they won’t earn any commissions on the IRA—you might need to manage your IRA through an independent IRA custodian.
These self-directed IRAs differ from the typical retirement accounts offered by banks or brokerage firms because ...