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Futures, Commodities and Options
1. Who should consider investing in Futures within their
Self Directed IRA?
Knowledgeable investors with appropriate investment objectives and an acceptable risk tolerance may consider investing in futures in their
self directed IRA and Solo 401(k). As Millennium Trust does not offer investment advice, we do not warrant the suitability of any particular
investment. Please consult with your investment advisor, broker and/or tax advisor to determine if futures are suitable for your investment portfolio.
2. How much of the IRA/Solo 401(k) can I invest in Futures?
Millennium Trust allows your entire account balance to be
invested in futures, less $500. The $500 “deposit” is not eligible
at any time to be invested in futures. This includes funds used to
open the account and all subsequent deposits, including additional contributions, rollovers and transfers. The funds not invested in futures may be invested into
"liquid" investments, such as listed stocks, mutual funds or treasuries, or the “deposit” can be held in one of two money market accounts offered by Millennium Trust: Federated Government Obligations Fund, for accounts with a money market balance greater than or equal to $250,000, or an FDIC insured Cole Taylor Money Market bank account. No transaction fees or asset holding fees are charged, and interest is accrued daily.
3. How long does it usually take to establish my account and fund my investment?
No investments are allowed during the revocation period, which is seven days from the date Millennium Trust accepts the account.
- Transferring funds or other assets from another trustee or custodian to Millennium Trust can be a lengthy process, over which Millennium Trust has limited control. Transfers may take
three to four weeks to complete. In some cases, a custodian will not provide Millennium Trust with status reports or the expected date of transfer. If time is an issue, contact your existing custodian or broker and request an expedited transfer of funds.
- Upon receipt of your funds, the initial investment generally will be completed in two to three days. Allow Millennium Trust five business days to invest a personal check. We suggest while completing the IRA-to-IRA Transfer Form, IRA-007, indicate that the funds should be wired. The wire instructions
will then be attached to the transfer request form when forwarded to the transferring custodian by Millennium Trust.
4. How do I protect the tax-deferred status
of my Millennium Trust IRA/Solo 401(k)?
- All contributions or deposits to the Futures IRA must be sent directly to Millennium Trust, and upon your direction,
will be forwarded to the broker or FCM of record for the futures investment. Funds should not be sent directly
to the broker or FCM to be credited to the investment account.
- All liquidations and distributions from a futures investment must be sent directly to Millennium Trust,
and upon the client’s direction, conveyed by the Millennium Trust distribution request, will be forwarded
to you as a distribution. You cannot receive funds directly from the broker or FCM.
DEPOSITS AND WITHDRAWALS TO YOUR FUTURES IRA:
IMPORTANT TAX IMPLICATIONS TO YOU
As custodian of the self directed IRA, pursuant to IRS Code, all deposit and withdrawal transactions must be generated by Millennium Trust
via the retirement account. Sending funds directly to, or receiving funds directly from a broker or the FCM will create
IRS tax liabilities, and doing so may disqualify the tax-exempt status of the IRA/Solo 401(k). In addition, time spent by Millennium
Trust researching this type of activity is extensive and is a special service we provide. It will be billed to your account at $75 per hour. |
5. How often are account statements sent out?
Millennium Trust issues quarterly statements, showing all investment activity, interest earned and the quarter-end market
value of your futures IRA investment. Indicated values may be delayed by up to 30 days due to the manual updating process
sometimes required. You should refer to the monthly statements provided by the broker or the FCM for the most up-to-date
information regarding your futures investment.
6. What account fees are charged to the account?
There is a one-time $50 IRA establishment fee charged at the time the account is opened. Each year the account is charged
a $150 annual fee and a $150 annual asset holding fee per futures asset
which are charged to your checking account or which are billed and
deducted from the account quarterly, on the 15th of
the month following quarter-end. Fees are deducted from the $500 balance in the money market portion of the IRA/Solo
401(k). If the money
market balance drops below $250, a $20 low-balance fee will be charged and billed quarterly. Accounts are charged a $50 transaction
fee for the initial investment and subsequently charged a $25 transaction fee for each purchase or
sale of an investment. If there is insufficient cash in your money market account, Millennium Trust may have to liquidate a
portion of your investment(s) to cover an overdraft. Additional transaction fees may apply to this activity. Futures investments
usually are liquidated before other types of investments to fund past-due fees. Other fees may apply to the account; please
refer to the fee schedule included with your Millennium Trust account application and trust agreement.
7. What are the key steps required to expedite the
establishment of an IRA with Futures at Millennium Trust?
Ensuring the most efficient and expedient paperwork processing for a self directed IRA with futures at Millennium Trust requires
you to:
- Read the Millennium Trust IRA Adoption Agreement (IRA-002), and appropriate Disclosure Statement, and follow the
instructions completely;
- Complete, sign and date all forms; *Note: Incomplete and incorrect information can delay the establishment of the
account and the investment of funds.
- Fill out the entire Adoption Agreement, (IRA-002), leaving no blank spaces;
- Complete the IRA-to-IRA Account Transfer Authorization form, (IRA-007), to enable Millennium Trust to initiate
the transfer of funds/investments from your existing custodian to Millennium Trust;
- Instruct your current custodian to liquidate the assets in your current IRA; transferring cash from your current IRA to
your new Millennium Trust self directed IRA will save significant time in the transfer process;
- Check with your current custodian to determine if a ‘Medallion Signature Guarantee Stamp’ is required to
have funds transferred to Millennium Trust;
- Complete the Futures/Forex Investment Direction form (FUT-002), specifying which FCM will handle the
account and the amount or percentage of the initial investment;
- On the Special Investment Authorization Form(FUT-003),
you must indicate the investment type and include a
signature;
- Include a current and valid photo ID. Acceptable identification includes a state ID card, driver’s license or passport; and,
- Include a check made payable to Millennium Trust for $50 to establish the account.
Please be sure all paperwork is complete and properly executed.
If it appears you did not complete the documents, or your instructions to us are unclear, we will contact you directly to
verify the information. Incomplete or missing documents will cause delays in document processing.
For your protection, we must be in receipt of all completed forms, including the FCM and Millennium Trust account
documents, prior to executing any investment on behalf of the client. This would include any subsequent
transfers completed between FCMs. We request that we receive all original documents to review and execute, after which
the original FCM forms will be forwarded to your respective Introducing Broker (IB) or Futures Commission Merchant
(FCM) with their investment. Investment directions with a date older than three months, or FCM investment documents
with a date older than six months, are considered invalid, and we will request new forms be completed and signed under a current date.
8. Where do I call with questions or to request
additional information?
For general questions about your self directed IRA, you should contact us at
(800) 258-7878.
- For questions relating to the establishment of your account, or the status of the transfer of funds or other
assets used to open your Millennium Trust self directed IRA you should call (800) 258-7878 and ask for NEW ACCOUNTS.
- For questions relating to the direct processing of the investments
in your futures IRA, call (800) 932-0053
and ask for the FUTURES DEPARTMENT or email us at
fcmsupport@mtrustcompany.com.
Contact your Futures broker directly with account questions:
- Related to the completion of futures applications; or,
- Regarding broker commissions or performance of your futures investment.
For the privacy and protection of Millennium Trust clients' information pertaining to a Millennium Trust account
is accessible only by the client. Information regarding the sufficiency of cash balances in a client’s account to cover
margin/debit calls will be provided directly to your IB or FCM upon their request.
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