Your responsibilities vs. Retired.com's and Digital Trust's responsibilities
Self-Directed IRAs split duties three ways — between you, the Retired.com platform, and Digital Trust, the custodian. This article spells out who handles what across the life of your account so there are no surprises.
Steps / Explanation
A Self-Directed IRA (SDIRA) opened through Retired.com is a partnership of roles defined by the Internal Revenue Service (IRS) and codified in the custodial agreement you sign with Digital Trust at account opening. Knowing the split matters: many of the events that disqualify an IRA happen because an account holder assumed someone else was checking something no one actually checks. For the operational view of how Retired.com (the platform) and Digital Trust (the custodian) work together day to day, see "How Retired.com works — the platform and custodian model explained".
What you are responsible for
As the account holder, you are responsible for:
Investment decisions. Choosing what to invest in, when to invest, when to sell, and at what price. Neither Retired.com nor Digital Trust advises.
Investment due diligence. Confirming the investment is legitimate, the counterparty is trustworthy, the documentation is in order, and the offering complies with applicable law. We recommend consulting a tax advisor or attorney for guidance specific to your situation.
Compliance with IRS rules. Avoiding prohibited transactions and dealings with disqualified persons under Internal Revenue Code §4975. The consequences of a prohibited transaction are severe and almost always fall on the account holder. See "Prohibited transactions — what they are and why they matter".
Titling and paperwork. Ensuring that documents — purchase agreements, operating agreements, deeds, promissory notes — are titled in the name of your IRA, not in your personal name.
Recordkeeping. Keeping copies of investment documents, Fair Market Valuation (FMV) support, expense and income records, and other materials the IRS may request. See "Your recordkeeping responsibilities as an SDIRA holder".
Annual Fair Market Valuations. Submitting an FMV for each non-publicly-traded asset every year so Digital Trust can file accurate Form 5498 reports.
Tax filings on your personal return. Reporting events that flow to your personal return — non-deductible contributions on Form 8606, missed Required Minimum Distributions (RMDs) on Form 5329, and similar.
What Digital Trust, as custodian, is responsible for
Holding the assets. Each asset is titled in the name of your IRA with Digital Trust as custodian.
Processing custodial transactions. Contributions, transfers, rollovers, investment fundings, distributions, and account changes you direct through Retired.com are executed by Digital Trust.
IRS reporting on the account. Filing Form 5498 (contributions and FMV) and Form 1099-R (distributions) annually based on the activity in your account.
Custodial recordkeeping. Maintaining the transaction history, statements, and supporting documentation a custodian is required to keep.
What Retired.com, as the platform, is responsible for
The application and account-opening flow. Onboarding, identity verification, and coordinating the custodial agreement you sign with Digital Trust.
The day-to-day account interface. Where you submit contributions, transfers, rollovers, investment directions, and distribution requests, and where you view your balance and statements.
Account security and access controls. Authentication, two-factor protections, and the procedures that govern who can give instructions on your account.
Communicating deadlines and account events. Notifications about contribution deadlines, FMV due dates, distribution events, and similar.
Coordinating with the Service Team and Operations Team to route your requests to Digital Trust for custodial processing.
What none of the three parties is responsible for
Three areas are common sources of confusion:
Investment advice or evaluation. Neither Retired.com nor Digital Trust tells you whether to make an investment, vets investment opportunities, or bears the risk of investment loss.
Tax, legal, or financial advice. Questions about whether a specific contribution is deductible for you, whether a Roth conversion makes sense in a given year, or how a particular investment will be taxed inside your IRA are advisory questions. We recommend consulting a tax advisor or attorney for guidance specific to your situation.
Catching prohibited transactions before they happen. Digital Trust processes the instructions you give through Retired.com. Detecting whether a particular transaction would violate IRS rules — for example, a sale to a disqualified person — is the account holder's responsibility, ideally with the help of a tax advisor or attorney.
When in doubt
If you are unsure who handles a particular task, contact the Service Team. The Service Team can identify whether the task is a custodial function (Digital Trust), a platform/processing step (Retired.com's Operations Team), or something that belongs on your side of the line.
Common questions
If I make a prohibited transaction by mistake, will anyone tell me?
Generally not in advance. Digital Trust processes the instructions you provide through Retired.com. Some patterns may be flagged in the course of routine review, but the account holder is responsible for ensuring transactions comply with IRS rules. We recommend consulting a tax advisor or attorney before any transaction you are uncertain about.
Can Retired.com or Digital Trust recommend a tax advisor or attorney?
No. Neither recommends specific advisors. Many account holders work with a tax professional who is familiar with SDIRA rules — a topic that is more specialized than general tax preparation.
Who pays expenses on an investment held in my IRA — me or the IRA?
The IRA. Expenses incurred by an investment held in your IRA must be paid by the IRA itself, not by you personally. Paying IRA expenses with personal funds can constitute a prohibited transaction. Contact the Service Team for the process to fund expense payments from your IRA.
Who reports my account activity to the IRS — Retired.com or Digital Trust?
Digital Trust, as custodian, files Form 5498 annually for contributions and FMV and Form 1099-R for distributions. Your responsibility is to report the matching activity on your personal tax return where required.
Need more support? Contact our Service team
Select "Start a Conversation" from the Chat menu or call us at 1-800-RETIRED
Retired.com is a platform that connects clients with its affiliated entities, including Digital Trust, BitcoinIRA, WAO Advisory, Rocket Dollar Capital, and Rocket Dollar Advisor. Digital Trust is an independent, directed, non-discretionary trust company that is registered and regulated in the state of Nevada. While Retired.com facilitates connections to these services, it is not itself a custodian, digital wallet, exchange, broker-dealer, registered investment advisor, or a company involved in trading publicly traded assets. All information provided is for educational purposes only and should not be taken as investment, legal, or tax advice. We encourage you to consult with a qualified advisor or professional to determine the most suitable options for your individual needs.