Well, I wasn’t going to write about this topic, but after two, almost exact, scenarios in the past week where someone called about termination fees….I just gotta.
When it comes to self-directed IRA and 401K plans, you typically have the option of paying custodian/administration fees on an annual basis, or a one-time fee (with possible annual fees) utilizing a facilitator model. The basic premise is that IF you select a custodian/administrator that charges annual fees, you will be paying fees to that custodian/administrator each and every year you have your plan. And, when you decide to close your account, you will be charged termination fees. Where, typically, with a self-directed IRA or 401K facilitator, you will pay a one-time fee, and have smaller, annual fees associated with your plan. In fact, some plans can be established with NO annual fees of any kind. Continue reading