A self-directed IRA plan agreement is one of the most important IRA form the IRA owner will complete during the life of the IRA. As a result, the IRA owner and his or her financial professionals should review and understand the IRA plan agreement before signing it. The IRA plan agreement outlines the duties of the IRA owner and the IRA custodian where the self-directed IRA is established.

Receive a Copy of Signed Self-Directed IRA Plan Agreement & IRA Disclosure Statement

The IRS requires that copy of the signed self-directed IRA plan agreement is provided to the IRA owner. The IRA custodian will also keep a signed copy of the IRA agreement to proof the self-directed IRA was formally established. An IRA disclosure statement, consisting of a easy to understand IRA rules financial disclosure, must also be provided to the IRA owner. See Treas. Reg. 1.408-6(d)(4)(iii) for information that must be included in the IRA disclosure statement. Some of these disclosure items include the following: 

• The tax consequences of establishing a self-directed IRA, including the deductibility of contributions, the tax treatment of distributions, the availability of income tax-free rollovers, and the tax status of self-directed IRAs
• An explanation of the limitations and restrictions on some self-directed IRA contributions
• An explanation of the circumstances under which a self-directed IRA owner may revoke the self-directed IRA
• A statement that a prohibited transaction will cause a self-directed IRA to lose its tax exemption, which results in the untaxed funds being included in gross income
• A statement that all or any portion of a self-directed IRA that is used as security for a loan is considered to be distributed, and that untaxed amounts are taxable in the year of distribution
• Statements explaining the reasons for and results of the early distribution, excess contribution, and excess accumulation penalties
• A statement explaining distributions, including required minimum distributions