Transaction Processing Times for your Self-Directed Retirement Plan
Published on November 20, 2015
How long does it take?
As your account administrator, Next Generation Trust Company wants to ensure that every “i” is dotted and every “t” is crossed when it comes to your application and account paperwork. Some of our clients have asked what this phase entails and how long it takes, so we offer this clarification of transaction processing times and our rigorous administrative review procedure.
This administrative review is the first phase of your transaction processing and is initiated when you send us your investing instructions. This review is required to make sure your desired transaction meets certain criteria, for a few very important reasons.
- Asset feasibility – we review the transaction to ascertain whether it is a) an asset you may reasonably include in your self-directed IRA and b) whether it is an asset we, as the account administrator, wish to hold.
- Compliance standards – it is our responsibility to make sure IRS guidelines are being followed regarding all self-directed investments based on the information we have from the client. We review each transaction and let our clients know if there is a possibility (or probability, in some cases) that it will be regarded as a prohibited transaction, or a transaction conducted with disqualified individuals.
- Protect the account’s tax-advantaged status – we want to make sure that, to the best of our knowledge, the transaction will not put your account’s tax-free or tax-deferred status at risk.
The administrative review will take between one and five business days, depending on the complexity of the transaction and our volume of transactions. Investment documents are processed in the order in which they are received. At the end of the review, we may require more complete documentation, corrections, and/or additional information to move ahead with the transaction processing.
Most transactions are completed in two business days provided that we have original, correct documents and cleared funding. For additional information, please check an earlier post that provides a good overview of the self-directed transaction process at Next Generation Trust Company.
We know you may be anxious to have your transaction processed but please understand, this is all for your protection!
