Learn how to fund a self-directed IRA.
Once you’ve opened your account, you’ll need to fund it so you can invest in the asset that you or your financial advisor have identified, researched and determined best suits your individual needs.
Pacific Premier Trust initiates fund transfer requests within two days of receiving them. Transferring assets other than cash may require additional timing or documentation.
If you are transferring cash from another custodian, sign and submit the transfer-in documents with a copy of your most recent statement.
Please call 800.962.4238 for assistance.
Methods of Funding
A transfer entails moving cash directly from one IRA to another like IRA (e.g., Traditional IRA to Pacific Premier Trust traditional IRA). There’s no limit to the number of transfers that can be requested, and because the account holder never takes physical receipt of the money, a transfer does not create a taxable event.
You can choose between transferring cash or assets in-kind. For cash transfers, Pacific Premier Trust will request the funds from your current custodian on your behalf, and the transfer typically takes five to seven business days. See “In-Kind Transfer” for specifics on how to transfer assets in-kind.
If you don’t wish to liquidate an asset before transferring it, you may be able to perform an in-kind transfer of the asset from another IRA to your Pacific Premier Trust IRA of the same type. The process can take longer than a cash transfer and alternative assets must be reviewed by Pacific Premier Trust first to ensure we can custody the asset in question.
A rollover occurs when you move assets from a qualified plan, including non-IRA plans, such as a 401(k), profit sharing plan, or other employee-sponsored plan, to your Pacific Premier Trust IRA. This is a very common method of funding a self-directed IRA and there are several ways to accomplish this.
- In-kind direct rollover: The direct rollover of non-cash assets from an eligible non-IRA plan into an IRA. Moving the assets directly from another qualified plan to an IRA will avoid a taxable event. Check first to see if Pacific Premier Trust holds the assets in question. If we are unable to hold the asset, you may need to liquidate the asset and roll over the cash instead.
- Cash direct rollover: The direct rollover of cash from an eligible non-IRA plan into an IRA. Moving the funds directly from a qualified plan to an IRA will allow you to avoid a taxable event.
- 60-day cash rollover: Allows the IRA owner to take receipt of funds from an IRA or eligible non-IRA plan, then deposit it into an IRA within 60 days without triggering a taxable event. You must return the funds to an IRA within 60 days, or the rollover will be considered a reportable distribution that is subject to taxes and, if you are under 59½, subject to penalties. Current rules only allow an individual to make one rollover from an IRA to another per 12-month rolling period.
Roth IRA Conversion
Under certain circumstances, the IRS allows individuals to convert a Traditional IRA into a Roth IRA. Pacific Premier Trust has extensive experience with the rules and processes around Roth IRA conversions. Contact our expert team if you want to learn more.
Important note regarding IRA rollovers:
You can make only one rollover from an IRA to another IRA in any 12-month period — regardless of the number of IRAs you own. The limit applies by aggregating all of the individual IRAs, including SEP and SIMPLE IRAs as well as Traditional and Roth IRAs, effectively treating them as one IRA for purposes of the limit. However, the one per year limit does not apply to these rollovers:
- From traditional IRAs to Roth IRAs (conversions)
- From trustee-to-trustee transfers to another IRA
- From IRAs to qualified plans (i.e., pensions, 401(k)s, etc.) and vice versa
- From qualified plans to qualified plans
If you make more than one IRA-to-IRA rollover in any 12-month period:
- You must include in your gross income, the previously untaxed amounts distributed in the preceding 12 months from an IRA, and;
- You may be subject to the 10% early withdrawal tax on the amount you include in gross income
For more information, view these IRS resources:
Time Duration to Fund
How Long Does Self-Directed IRA Funding Usually Take?
At Pacific Premier Trust, we do everything we can to make the account funding process as fast and efficient as possible. Keep in mind that the time it takes to complete new account funding can vary based on several factors, including:
- Funding method
- Source of existing funds
- Policies of your current custodian or administrator
- Types of assets currently in your account
- Availability of funds to transfer
Estimated Funding Timelines
Upon Pacific Premier Trust’s receipt of your funding request, you can use the following chart to estimate how long it will take to fund your account. Timelines are also dependent upon your current custodian or administrator.
|Method||Allowable Accounts||Processing Time With ACATS||Processing Time Without ACATS||Considerations|
|Cash Transfer -Partial Cash||From like IRA to like IRA (e.g., traditional IRA to Pacific Premier Trust traditional IRA) with Market-Traded Securities||5–7 business days||5–7 business days||Check with your current IRA administrator for processing time. Mutual funds take longer.|
|Cash Transfer -Full Cash||5–7 business days||5–7 business days|
|Cash Rollover||From a qualified plan like a 401(k) or profit sharing plan to Pacific Premier Trust IRA||5–10 business days depending on your current plan administrator||Check with your current plan administrator for processing time.|
|60-Day Cash Rollover||From IRA or eligible non-IRA plan to Pacific Premier Trust IRA||5–7 business days||This type of rollover can be performed once per 12-month rolling period but there are exceptions. Consult with your tax advisor.|
|In-Kind Transfer||From like IRA to like IRA (e.g., traditional IRA to Pacific Premier Trust traditional IRA)||Traded assets: 5–7 business days||
Non-traded: 15–30+ business days
Please note the transfer may be more complex.
|Check with Pacific Premier Trust to see if your assets can be accepted.|
|In-Kind Direct Rollover||From eligible non-IRA plan to Pacific Premier Trust IRA||15–30+ business days||Check with your current plan administrator for details on processing time.|