Retirement Planning Services

Summit Trust Company is a Nevada chartered trust company and custodian of retirement plans with offices in many states throughout the country. Summit Trust Company focuses its IRA Administration services on the administration and custody of self-directed IRAs including those invested in non-traded assets.

All IRA transactions performed by Summit Trust Company are at the direction of the account holder and/or their agent.

Summit Trust Company's custodial services are designed to support the individual, who (with or without a broker/advisor) wants the flexibility to direct and diversify his/her holdings beyond publicly available investment choices. Summit Trust Company supports the following types of IRAs at the present time:

  • Contributory IRA (Traditional IRA)
  • Rollover IRA
  • SEP IRA
  • Spousal IRA
  • Stretch IRA
  • Conduit IRA
  • Roth IRA
  • Charitable IRA
  • Unlimited IRA

Summit Trust Company Investments for IRA's

Summit Trust Company functions primarily as a "passive" IRA custodian. Summit Trust Company does not provide investment advice, nor do we sell to our clients. Rather, Summit Trust Company clients self-direct their accounts by choosing their own investments, and are, therefore, responsible for their decisions. However, Summit Trust Company does provide clients with tremendous flexibility in choosing different types of investments and any number of investments, within their IRA. It is hoped that Summit Trust Company clients will take full advantage of this flexibility to diversify their accounts and maximize their long-term gains.

If a client wants a fully "Passively Managed" program using mutual funds, we recommend that you review our program for the Summit Trust Asset Management Program (STAMP) - Mutual Funds, which utilizes mathematically designed portfolios based on Modern Portfolio Theory.

Also, clients may take advantage of Summit's STAMP Program - Exchange Traded Funds (ETFs). ETFs are an excellent investment vehicle that allow for diversification and flexibility in a IRA account. Click here for more information on the STAMP - ETF Program.

Investment Opportunities

Summit Trust Company permits clients to invest in all IRS permitted investment types. Because the law governing the types of investments permitted within IRAs is exclusive rather than inclusive, there is a specific list of investments that are prohibited (See IRS Publication 590 for complete details). These are:

  • Collectibles (e.g. art, antiques, jewelry etc.)
  • Life insurance
  • Coins (other than U.S. gold coins)
  • "Party-in-Interest" transactions (These are transactions involving "disqualified" parties such as ascendants, descendants, fiduciaries etc. See Internal Revenue Code 4975 for details).

With these exclusions, the range of permitted investments is quite broad, including mutual funds, stocks, bonds, certificates of deposit, private placements, notes, mortgages, real estate, partnerships etc.

Click here to read more about IRA Prohibition Laws.

Mutual funds

Summit Trust Company clients are free to choose any of the 8,000+ mutual funds available today. Clients simply contact the fund(s) of their choice, obtain and complete the IRA investment application(s) and mail them to us. We will invest the necessary funds from your account and forward the application to the selected fund.

Certificates of Deposit

Summit Trust Company clients can select any federal or state chartered bank or credit union and invest in one or more certificates of deposits. Clients are expected to perform their own due diligence on the banks they choose and be aware that deposits under the FDIC are insured up to $100,000.

Stocks and Bonds

Any stock traded on any of the public exchanges (e.g. New York, American, Nasdaq, Pacific, Philadelphia, Chicago) is permitted by Summit Trust Company, as well as any non-traded or private stock. Procedures for private stock investments are slightly more involved. Summit Trust Company can arrange to open an account with your broker of choice.

Private Placements and Limited Partnerships

Private placements are simply limited private stock offerings that are generally conducted by start up companies to raise funds for their businesses. Private Partnerships are another way to raise funds for specific purposes. Rather than owning stock in the corporation, limited partners own units of the total partnership which can be independent from the company offering the partnership investment. Summit Trust Company does not offer, inform, direct, or evaluate these investments for clients, except to ensure that the company offering such investments is registered as a corporation. Clients are advised to perform their own due diligence for these private investments and to seek the counsel of professional investment advisers.

Charitable Bonds

Some charities raise funds by issuing Bonds or Notes. Summit Trust permits the purchase of these bonds in our "Unlimited" IRA Accounts.

Real Estate, Mortgages and Private Notes

Individuals can purchase real estate, mortgages and private notes within their IRA accounts. Under IRC 4975 (see Investment Opportunities above), an individual cannot make such investments for their own use or that of a direct lineal ascendant or descendant (e.g. father or daughter) or any other disqualified individual or entity. However, such investments can be made to disinterested third parties, or, in the case of real estate, when they are treated strictly as investments and not otherwise used for personal gain (such as occupying an office building owned by your IRA). Clients are advised to seek the advice of a tax accountant or attorney before engaging in such transactions to ensure that they do not violate rule 4975.

Other

There are many other types of investments that can be made within IRAs. Some of these include unit trusts and secured contracts, to name a few. If you have a question regarding the acceptance of a specific investment you have in mind, please contact us. We'll do our best to answer your questions. Remember, however, we cannot advise you on the type or specific investment.

If you have a question regarding your IRA or a specific investment, please call us. We'll be glad to help you!

If you would like us to send you more information about Summit Trust Company or IRAs, please contact us.