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IRA Financial Group Sees Increased Demand for Self-Directed IRA in Light of New IRA Fiduciary Rules

Potential reduction in IRA investment options from traditional financial institutions leading to strong interest in self-directed IRA

IRA Financial Group, the market’s leading provider of self-directed IRA and Solo 401(k) plans, has seen a surge in demand from IRA clients looking to establish a self-directed IRA in light of the new IRA fiduciary rules. The Labor Departments new IRA fiduciary rule is aimed at stopping the $17 billion a year the government claims investors waste in exorbitant fees. The idea is that the regulation will stop advisers from putting their own interests in earning high commissions and fees over clients’ interests in obtaining the best investments at the lowest prices. Merrill Lynch as well as many traditional financial institutions is moving to fee-based IRA accounts in order to avoid a provision of the rule known as the best-interest contract exemption (BICE), an exemption of the rule, which would allow brokers to continue selling products under commission if they were to jump through additional compliance hoops. Many of the basic regulations — the best interest standard — will go into effect in April 2017; others won’t be implemented until 2018. “One reason we are seeing a strong demand for self-directed IRA accounts is that fee-based accounts often don’t make economic sense for firms if the accounts have low balances, so many advisers are expected to drop undersized retirement accounts,” stated Adam Bergman, partner with the IRA financial Group. “We have heard from many IRA clients that mentioned that their broker did not want to handle their small IRA account, which helped turn them on to the self-directed IRA option”, added Mr. Bergman. “Additionally, there are concerns from IRA clients that the new fiduciary rules will force advisors to direct IRA accounts away from funds that pay higher broker commissions even if they could end up generating the highest returns for the client”, continued Mr. Bergman

According to Mr. Bergman, with checkbook IRA annual account fees of $180 flat per year and with the average client having around $100,000 in IRA funds, IRA Financial Trust’s self-directed IRA clients are paying less than 0.20% in account value fees.

With IRA Financial Group’s self directed retirement plans, retirement account investors have the ability to make traditional as well as alternative asset investments, such as real estate in a tax-deferred or tax-free basis. In addition, our self-directed Solo 401(k) plan is a perfect retirement and investment platform for any self-employed or small business owner with no full-time employees.

“The IRA Financial Group has built our businesses on that untapped market, offering low-cost alternative asset self-directed IRA options to retirement account holders whose portfolios may not be big enough for traditional firms,” stated Mr. Bergman.

The IRA Financial Group was founded by a group of top law firm tax and ERISA lawyers who have worked at some of the largest law firms in the United States, such as White & Case LLP, Dewey & LeBoeuf LLP, and Thelen LLP.

IRA Financial Group is the market’s leading provider of self-directed IRA LLC and Solo 401(k) plans. IRA Financial Group has helped thousands of clients take back control over their retirement funds while gaining the ability to invest in almost any type of investment, including real estate without custodian consent.

To learn more about the IRA Financial Group please call 800-472-0646. To learn more about establishing a self-directed IRA account with the IRA Financial Trust Company please visit or call 800-472-1043.

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Posted in Self-Directed IRA