How to Select an IRA Trustee

An IRA trustee, also called a custodian, is the institution that administers your plan. A trustee may be a bank, credit union or a large brokerage firm that is licensed by the IRS. Trustees must be extremely knowledgeable about and able to uphold all of the federal regulations regarding Irks. They also handle your purchase requests and generate reports about contributions, disbursements and taxes.

Instructions

1. Examine each possible company that you are considering to become your IRA trustee. Assess professionalism and demeanor, years of experience, accessibility, customer service access and fee schedules to compare companies across the board.

2. Read each company's mission statement for key words that attract your attention. Look for customer-focused statements, a stellar track record and a commitment to excellence.

3. Request printed materials from each company. How quickly it arrives in the mail can be a good test of internal efficiency. In addition, the language used in these materials can help you determine if the firm is targeting your type of investor or someone in a different income bracket.

4. Ask questions about the company's regulatory status, especially how long they have been regulated.

5. Find current IRA customers who can serve as references. Speaking with people outside the company will give you a different point of view and provide good insight into the company's performance.

6. Inquire about a trial period for new accounts. It is important to note what your options are within the first 30 to 60 days if you are not satisfied with the service you receive.

7. Visit the offices of local banks or other institutions you may select as your IRA trustee.

8. Contact the Better Business Bureau (BBB) before you select a trustee and inquire as to complaints about the companies you are considering, and how the issues were resolved.

9. Verify that every one of your final candidates is FDIC insured. This will safeguard your funds in case of emergency.

10. Select your IRA trustee from your list of final candidates. This decision should be based on account minimums, your financial goals, the fee schedules of each company and your personal experience with the firm of your choice.

Tips & Warnings

• With online banking becoming more widespread, it may not be possible to visit an actual office of a company you are considering as an IRA trustee. If this is a problem for you, select only those companies that have physical locations.