Rollover Process with Directed IRA for Roth IRA
Directed IRA (formerly Directed Trust Company) is a flat-fee SDIRA custodian based in Phoenix, Arizona, founded by attorney Mat Sorensen — author of The Self-Directed IRA Handbook. It is known for transparent flat-fee pricing, strong real estate SDIRA expertise, and a tech-forward online portal. Annual fee: $295/year flat regardless of account value.
1Expert Analysis: Directed IRA
A deep dive into platform competence. Directed IRA is the only major SDIRA custodian founded by a practicing SDIRA attorney — Mat Sorensen, whose book The Self-Directed IRA Handbook is the definitive reference for IRA investors, attorneys, and CPAs working in the alternative asset space. This legal DNA means Directed IRA's compliance guidance tends to be more precise and practical than custodians built by financial services professionals. For investors concerned about prohibited transaction compliance, the founder's background is a genuine differentiator.
When opening a Roth IRA, selecting your custodian determines your overhead cost and execution speed.The flat $295/year fee structure is Directed IRA's most significant competitive advantage for accounts above $100,000. An investor with $400,000 in a real estate SDIRA saves $400–$600/year versus Equity Trust — compounding to $4,000–$6,000 over 10 years. The fee savings are real but the decision should also account for Directed IRA's smaller specialist team depth: for first-time real estate SDIRA investors, Equity Trust's dedicated real estate team and Equity University may provide more hand-holding during the learning curve.
- High-value SDIRA accounts ($100,000+) where the flat fee generates maximum savings
- Real estate SDIRA investors who want faster transaction processing
- First-time SDIRA investors who want strong educational resources from a custodian with compliance credibility
- Cost-conscious investors who want the lowest total annual cost for alternative asset custody
2Directed IRA Fee Schedule
Fees compound over the life of your Roth IRA. Always evaluate the total cost basis.
Setup Fee
$50 one-time account setup fee
Charged one-time upon account initiation.
Annual Fee
$295/year — flat fee regardless of account value
This is Directed IRA's primary competitive advantage. A $500,000 SDIRA pays the same $295/year as a $50,000 SDIRA. For large accounts, the savings vs. asset-based fee custodians are substantial.
Incoming Rollovers
$0 — no fee for incoming direct rollovers
Direct rollovers are typically free to originate on the receiving side.
3Roth IRA Considerations
How Directed IRA specifically handles the Roth IRA asset class and structure.
Roth SDIRA at Directed IRA — same flat fee. Incoming Roth 401k rollovers (Code H) handled identically to pre-tax.
Tax Destination Character: All growth within the Roth IRA is permanently tax-free. Qualified distributions (after age 59½ and after the 5-year holding period) are completely tax-free — including all earnings accumulated since the rollover.
4Rollover & Account Opening Process
Moving funds via direct rollover into your new Roth IRA.
- Complete online application at directedira.com — 10–15 minutes. ID verification is completed digitally.
- Pay $50 account setup fee. Receive account number same day to 1 business day.
- Provide Directed IRA's FBO information to the sending plan for direct rollover. Payable to: 'Directed IRA FBO [Your Name] IRA Account #[Number]'.
- Directed IRA posts incoming rollover within 1–3 business days of receiving funds.
- Submit Investment Direction form online to direct the investment. Directed IRA's online portal has asset-specific direction forms.
- Directed IRA processes the investment direction and executes the transaction.
5Common Directed IRA Pitfalls
Mistakes specific to the Directed IRA platform.
Assuming the $295 flat fee covers all services
The $295/year flat fee covers account custody. Transaction fees ($35–$100 depending on asset type), wire fees, storage fees for precious metals, and the $50 one-time setup fee are separate. A real estate SDIRA with two transactions per year pays $295 + $200 in transaction fees + $50 setup (year one) = $545 in year one, $495 annually thereafter. Still cheaper than Equity Trust for most accounts, but not literally $295 all-in.
Not verifying the real estate closing attorney is familiar with Directed IRA's process
Real estate closings with SDIRA custodians require attorneys and title companies familiar with IRA-as-buyer transactions. Directed IRA's closing process differs from Equity Trust's in the specific documentation format and title vesting language. Using a real estate attorney unfamiliar with Directed IRA specifically can cause delays at closing. Directed IRA maintains a list of attorney-partners experienced with their process — request it before selecting a closing attorney.
Contacting Directed IRA outside their MST business hours and missing time-sensitive investment windows
Directed IRA's customer service operates 8AM–5PM MST Monday–Friday — no weekend or extended-hours support. For real estate investors in competitive markets needing same-day investment direction approvals, the MST time zone cutoff means East Coast investors effectively have a 5-hour service window (8AM–5PM MST = 11AM–8PM ET, but practical cutoff for same-day action is 2–3PM MST). Build this timeline constraint into any competitive real estate acquisition strategy.
6Frequently Asked Questions
Is Directed IRA's $295/year fee all-inclusive?
The $295/year is the annual custodian fee and covers account maintenance, statements, and tax form issuance. It does not include: the one-time $50 account setup fee, transaction fees ($35–$100 per investment direction), outgoing wire fees ($25), or precious metals storage fees (billed by the depository separately). Total annual cost for a typical real estate or precious metals SDIRA with 2–3 transactions: $450–$650/year.
How does Directed IRA compare to Equity Trust for a Gold IRA?
For a $200,000 Gold IRA: Directed IRA charges $295/year in custodian fees vs. Equity Trust's approximately $350–$400/year. Directed IRA's metals transaction fee is $35–$50 per purchase vs. Equity Trust's $50–$75. Both use Delaware Depository or Brinks for storage (storage fees are similar). Directed IRA is modestly cheaper, but Equity Trust's larger precious metals dealer network may provide more competitive metal prices from dealers — partially offsetting the fee difference.
Who is Mat Sorensen and why does it matter for my SDIRA?
Mat Sorensen is an Arizona attorney, SDIRA specialist, and author of The Self-Directed IRA Handbook — the most widely referenced book on self-directed IRAs for investors and professionals. He founded Directed IRA specifically to solve the compliance problems he saw SDIRA investors encounter. The significance: Directed IRA's compliance guidance and educational content is built by someone who has litigated and advised on SDIRA disputes, not just marketed financial products. This matters most for investors concerned about prohibited transaction compliance.