Direct Register Shares from IRA

In Kind Direct Transfer

Set up an account at a non-broker custodian. That is a company that can hold non-traditional assets like real estate, precious metals, artwork, etc. They use companies within the DTCC system like 3rd party brokers to execute trades, but can hold assets outside of it, too. Request an IRA to IRA (no tax/no penalty) transfer using the request form from the new custodian. According to user reports, Mainstar Trust is well suited for this purpose. Once shares are in the new account, request the new custodian to direct register in book entry the shares with the transfer agent (Computershare).

 

Due to the nature of the custodial account, the shares are registered in the name of the custodian for your benefit. All buys and sells must be requested to the custodian and the custodian executes. Depending on the custodian, this can be a longer process that typical broker execution times, but note that all shares are removed from DTCC activity.

Further instructions:

  • Take notes, just include, date, time, name of person you spoke to, what was discussed. 

  • Contact a non-broker custodian and ask if they are willing and able to: Direct register GME shares with the transfer agent Computershare, while remaining the custodian and keeping the IRA account intact AND add your name to the Registered Owner FBO (For Benefit Of-likely in the form of Non-Broker Custodian Name). This puts them in your name and removes them from the DTCC.

  • Confirm that this will be a Like-In-Kind transfer and will not be a taxable event. That there will be no capital gains or early withdrawal penalty as this is not a distribution.

  • If they tell you it can’t be done or present any roadblocks it is likely that they, as a company, choose not to. This is the case for many brokers.

  • Once you’ve established that they are familiar with the process, are willing and able to answer yes to the questions above, and have done this for other registered shareholders you can begin the process.

  • You do not need to contact your broker. The non-broker custodian will help you create the new accounts and submit the transfer request. They will likely request your prior broker statements to get the information and confirm the account types.

  • Submit broker IRA statements: Submit statements for each IRA account you would like to transfer. In some cases they can be combined (check with the agent).

  • Submit new IRA Account forms: Create same Type IRA accounts at non-broker custodian (e.g. if you have a Roth and Traditional at Fidelity, you would create a Roth and Traditional at the non-broker custodian).

  • Submit Transfer/Direct Rollover Request Form: The non-broker custodian should help you fill out the actual asset transfer request form. It will include your information, broker information, and exact assets you want to transfer. Fill out one for each IRA account type.

  • Once your shares are received at the non-broker custodian they can now be directly registered FBO (For Benefit Of) you with Computershare. The non-broker custodian will submit this on your behalf once you request it.

  • Follow up with the non-broker custodian to check on the status of the IRA DRS transfer.

  • You should receive a scanned copy of your DRS paperwork showing DTC Withdrawal and the number of shares along with a confirmation similar to: The shares have been received and the DRS has been completed for the Traditional IRA. The shares are registered as follows: Non-Broker Custodian FBO Your Name IRA non-broker custodian Tax ID number.