Custodians, Facilitators and Administrators

Self Directed IRAs have different labels that can sometimes cause confusion. Much like the difference you see in grocery stores use of “natural” and “organic” these labels are used to create a likeness so that the consumer sees them as interchangeable. These labels do have a difference though, and it is important to note them. 

A Custodian is IRS compliant and undergoes audits and regulatory oversights. Meeting the IRS requirements allows for the Custodian to hold assets, real property or investments as well as issue funds and create a blended portfolio. 

Moving down the line, Facilitators are ones that can provide advice and guidance on one’s SDIRA or Solo 401k. Facilitators are often under the Custodian’s hat and work with them to provide full service to each Client. 

An Administrator is mostly on the paperwork/maintenance side of the account. There is no real advice given or assets distributed, they are the “value add middleman” when it comes to the setup and money moving. 

The difference between these three labels is pretty broad. Knowing who you are working with and who to contact is of utmost importance when it comes to your hard earned investments.