Stage 1 – Open and Fund Your New IRA
Open an IRA at Midland
You should fill out our three page application, one page fee schedule and either our 1 page rollover certification form OR 1 page transfer form (see step #2 for help on if deciding if you should fill out the transfer or rollover form)
Fund your new IRA
Three ways to fund an IRA account:
Moving over money from an existing IRA?
- Fill out our transfer form and fax or email back to us.
- If your IRA assets are not sitting in cash, please contact the current administrator that holds your retirement funds to put in liquidation order. You may liquidate the whole IRA account or just the portion you are interested in bringing over to your new Midland IRA. Our transfer form can move cash from your old IRA to your new IRA here at Midland, but cannot liquidate any of your non-cash holdings in your old IRA account.
Moving over money from an old 401k, pension plan, 403(b), etc.?
- Fill out our rollover certification form to alert us that you are rolling money into your new IRA account. Fax or email the form back to us.
- Contact the current administrator that holds your retirement funds and request a copy of their “direct rollover” paperwork. Fill out the forms they provide to initiate a direct rollover of cash to your new Midland IRA.
Making a contribution?
- Verify with your CPA or tax advisor that you are eligible to make an IRA contribution
- If you wish to mail a contribution check please have the payable to line read “Midland Trust Company As Custodian FBO (your name)”. In memo line please write “IRA Contribution for (Tax Year)”. Mail the check to our office address: Midland IRA, 1520 Royal Palm Sq. Blvd #320, Fort Myers, FL 33919. If you wish to electronically send your contribution in, please contact us and we will provide you with our wire or ACH instructions so your bank may send the funds to your new IRA electronically.
Stage 2 – Invest Your IRA Funds
Make an offer to purchase real estate
- Please have any purchase contracts to make an offer list your IRA as the buyer using the following title: “Midland Trust Company As Custodian FBO (your legal name) IRA # (your new IRA account number)”. It is CRITICAL that the title of buyer is listed as your IRA and not you or your personal LLC. Title to the property MUST be taken in the name of your IRA.
- We will sign the contract on behalf of your IRA as buyer. Please initial each page of the contract to show you have read and approved the terms. Fax or email the initialed contract pages to us. We will sign the contract on behalf of your IRA as the buyer and return the signed contract back to you via email.
Notify Midland if one of your offers to purchase real estate is accepted.
- If the offer is accepted by the seller, please notify us when your IRA will be closing on the purchase and if any earnest money deposit is due.
- The earnest money deposit must be issued out of your IRA account. You will need to fill out our Real Estate Purchase Authorization form and fax or email it back to us along with a copy of the accepted contract at least 1 business day prior to needing the deposit to be sent out of your IRA account. Be sure to supply us with either wiring or check instructions on where we need to have the deposit sent.
- Notify us of the contact person at the title company or attorney’s office that will be preparing the closing documents so we may issue instructions to them.
Close on the property purchase using your IRA money
- The title company or attorney should email us copies of the settlement statement, deed, title commitment, wiring instructions and any other documents that require signature on behalf of your IRA as the buyer.
- We will review the closing documents to ensure your IRA is listed appropriately as the buyer.
- We will contact you to request your initials on each and every page of the closing documents to show you have read and approved the real estate purchase. We are able to send the documents to you via DocuSign if you wish to initial electronically using your email. You are also welcome to print out the documents, initial each page and fax or email the initialed pages back to us.
- Upon receipt of all your initialed pages, we will then sign all closing documents on behalf of your IRA for the purchase of the property and send the necessary money out of your IRA to the title company or attorney for closing. You do not need to attend closing as we will sign all documents on behalf of your IRA.
- After closing, the title company or attorney will mail the original recorded deed and owner’s title policy (if purchased) to you. We will hold electronic copies for our files.
Property is owned within your IRA account. The IRA must collect all income/pay all bills.
- Have all income generated by the property returned directly to your IRA account.
- If the property is being rented, all rental income should be returned to your IRA account via check, wire or ACH (you or your tenants may contact us for the necessary instructions). Only exception is if your property manager is collecting the rent on behalf of your IRA (please note the property manager must not be a disqualified party to your IRA).
- Rental income returns to your IRA tax free. Please be sure if a property manager is involved, they are reporting the income using the name of your IRA as the property owner and the IRA’s tax ID number (NOT your social security number)
- All expenses must be paid directly out of your IRA account.
- You may initiate any bill pay requests under $1,000 online using your online access log on information. Contact us to request online access if you do not have it on file.
- If the bill pay request is over $1,000 please fax or email in a copy of the invoice as well as one of our payment authorization forms.
- Only exception is if your property manager is paying the bills on behalf of your IRA (please note the property manager must not be a disqualified party to your IRA).
- You may NOT pay any expenses associated with the property out of your personal pocket. This includes but is not limited to: property taxes, property insurance, renovation expenses, utilities, etc.
Sell the property
- When you are ready to sell the property, please notify us and fill out our Sale Authorization form. The sale process is very similar to steps 3, 4 and 5 above as outlined for the purchase, but your IRA would simply be the seller.
- After we sign all closing documents on behalf of your IRA as the seller, the sale proceeds will return tax free to your IRA here. When the cash arrives in your IRA account, you may notify us if you will be making another investment, moving the money to another IRA account, etc.