Onboarding investors with an SD-IRA retirement account
Onboarding an investor with an SD-IRA account is different than an investor with a normal account. Below, we provide some guidance and tips to onboard the investor effectively.
- After investor has selected SD-IRA in Step 1 of registration, request them to provide you the name and contact information for their custodian.
- Contact the custodian and find out what fund documents are required for them to approve your offering. Some custodians require a review of your fund documents while others do not.
- Request the following information from the custodian:
- The EIN that should be tied to the account - SD-IRAs require using the custodian's EIN
- The address that should be tied to the account
- How they title their accounts, for example, some custodians use their name, then FBO, then investor name and account number
- Go into Avestor's portal, Operations menu and then Manage SD-IRA custodians. If custodian is not on the list, add the custodian's information on this page. Copy the EIN number.
- Go to View & Manage registrations & select the investor that is registering. Go to Step 1 of the registration process. Under identity information, if Account type is SD-IRA, you will see Custodian listed. Select the investor's custodian from the list and paste in the EIN for that custodian. Save the record.
- In Step 2, ensure the following:
- The investor has submitted their accreditation letter (for 506c funds). For 506b funds, ensure that the investor has signed of on the self-certification.
- The investor has filled out the agreement & signed it.
- The custodian has signed the agreementCustodians usually sign off on the subscription portion of the agreement. Contact the custodian to determine how they will sign off on the agreement. It will likely require you emailing them your PPM/OA/Subscription page separately and they will sign off and email back to you.
- The custodian will then request wire instructions for your fund to send the investor capital.
- After the funds have arrived, approve Step 2 of registration.
- On Step 3, fill out the amount received from the custodian and hit Save button.
- Return to Step 3 and Approve Step 3. The investor account is now set up.