Frequently Asked Questions

Quick answers to your most immediate questions

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  • What investments can I hold in an account at Millennium?

    You can hold both traditional investments and alternative assets such as hedge funds, private debt/equity, real estate/real assets, futures, and much more.

  • Are there any investments that are prohibited in an IRA?

    Yes, while self-directed IRAs offer individuals flexibility in investment choices, the Internal Revenue Code has a few restrictions on the types of assets which can be held in an IRA. The following types of assets are prohibited:

    • Life insurance
    • Collectibles such as works of art, rugs, antiques, metals (other than gold, silver and palladium), gems, stamps, coins (except certain U.S. minted coins), alcoholic beverages, and other tangible property

    An IRA is also not permitted to be a shareholder of an S-corporation.

  • How do I purchase an investment in my account?

    To process a transaction for an account, we require specific documentation. For more information download the Alternative Asset Transactions - Required Documentation PDF.

  • Does Millennium Trust provide investment advice?

    Millennium Trust Company performs the duties of a directed custodian, and as such does not provide due diligence to third parties on prospective investments, platforms, sponsors or service providers and does not sell investments or provide investment, legal, or tax advice.

  • How does a prohibited transaction in an IRA happen?

    According to IRS Publication 590, a prohibited transaction is any improper use of a traditional IRA by the account owner, its beneficiaries or any disqualified person. The following are examples of prohibited transactions.

    • Borrowing money from your IRA
    • Selling property to your IRA
    • Using your IRA as security for a loan
    • Buying property for personal use (present or future) using your IRA funds
    • Transactions with lineal descendants or spouses
  • What are the consequences of making a prohibited transaction?

    IRS Publication 590 states that if you or your beneficiary engage in a prohibited transaction in connection with your IRA at any time during the year, the account stops being an IRA as of the first day of that year. If your account stops being an IRA because you or your beneficiary engaged in a prohibited transaction, the account is treated as distributing all its assets to you at the fair market value on the first day of the year. Additionally, Section 4975 of the Internal Revenue Code specifies the taxes resulting from a prohibited transaction can equal 15 percent of the amount involved with respect to the prohibited transaction.

  • How do I buy traditional investments in my account?

    You have two options:

    • Direct trades online through Millennium Trust Online
    • Call Millennium Trust to place the trade

    In order to place the trades online, you must have trading authority on your account. To update your selection, submit a web access form.