How Much Does a Self-Directed IRA Cost? (And Is It Worth It Under $1 Million?)

“What does it cost to move money into a self-directed account, and how long does it take?”

Self-directed IRA cost is the practical question most people ask right after “can I do this?” In our September live Q&A, guest John Bowens of Equity Trust Company gave real timelines, a real fee example, and a straight answer on whether you need $1 million to make it worthwhile.

Quick answer: Timing: an IRA-to-IRA transfer takes about 5–8 business days; a 401(k), 403(b), 457 or TSP rollover about three weeks, so fund the account before you find the deal. Self-directed IRA cost: custodians charge account fees, often flat tiers by account value, because they don’t earn money on your investments. John’s rule of thumb is roughly 0.5%–0.75% of the account a year, more on small accounts. And no, you don’t need $1 million.

How long it takes to fund a self-directed IRA

An IRA-to-IRA transfer averages 5–8 business days. A rollover from an employer plan (a 401(k), 403(b), 457 or the federal TSP) takes about three weeks. The practical lesson: open and fund the account well before you identify an opportunity, so you’re not racing a closing date.

Self-directed IRA cost: what custodians charge

Fees vary by custodian and by account size, usually as flat fees on a sliding, tiered scale. As one real example, here’s the Equity Trust schedule John quoted on the call (September 2026; check the current schedule before you sign up):

• Under $50,000: $350 a year
• $50,000–$100,000: $500 a year
• $100,000–$250,000: $750 a year
• Self-directed Solo 401(k): $1,295 the first year (including the IRS-approved plan document), then $695 a year

John’s rule of thumb across custodians: roughly 0.5% to 0.75% of the account’s market value a year, though flat fees cost more in percentage terms on small accounts. Compare custodian to custodian, provider to provider, and IRA to Solo 401(k).

Why self-directed custodians charge a fee

Big brokerages often charge nothing for the account itself, because they make money on the investments you hold there. Self-directed custodians and administrators don’t earn anything from your real estate, notes or private deals. The account fee is how they’re paid.

Is a self-directed IRA worth it under $1 million?

Yes, if you have enough to make the investments you want. Most of John’s clients aren’t moving $1 million or more. They’re moving tens of thousands or hundreds of thousands. If a private real estate partnership has a $50,000 minimum, transferring $50,000 to make that investment is perfectly normal. Where it doesn’t make sense is a few hundred or a few thousand dollars: private deals usually ask for tickets of $25,000, $50,000 or $75,000.

Who pays the account’s bills?

A listener asked whether the fee on a checkbook LLC’s business bank account can be paid from the IRA. John’s first tip: there are banks that don’t charge those fees, so consider switching. But any expense related to an asset in your IRA must be paid by the IRA. The one exception is the custodian’s separately billed administrative or custodial fee, which can be paid from outside the IRA, even by credit card. Transaction fees and commissions still come from the IRA.

Official IRS references: IRS — Rollovers of Retirement Plan and IRA Distributions; IRS — Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs)

Key takeaways

• IRA-to-IRA transfers take about 5–8 business days; employer-plan rollovers about three weeks.
• Fund the account before you find the deal.
• Custodian fees are often flat tiers: roughly 0.5%–0.75% a year mid-range, more on small accounts.
• You don’t need $1 million; private deals often start at $25,000–$75,000.
• Asset expenses must come from the IRA; separately billed custodial fees can be paid from outside it.

Self-directed IRA cost FAQs

Related questions from this Q&A

• The full September self-directed IRA Q&A with John Bowens: every question on one page
• Self-directed IRA vs regular IRA: is yours really self-directed?
• Self-directed IRA custodian: will they stop a bad move?

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Guest: John Bowens, Director & Head of Education and Investor Success at Equity Trust Company, appeared as a guest. Custodians, including Equity Trust Company, do not provide tax, legal or investment advice.

Disclaimer: This article is for educational purposes only and is not tax, legal, or financial advice. Every situation is different. Talk to a qualified professional about your specific facts before making any decisions.