Frequently Asked Questions
Online Portal Questions
I had a login to my old portal. What happened to it?
How do I change my password in the Online Portal?
How can I reset my password in my Online Portal?
Do all internet browsers support Provident Trust Group’s secure portal?
Self-Directed IRA Questions
General Account Questions
How do I update my contact information?
- Email to email@example.com
- Fax to (702) 253-7565
- Mail to 8880 W Sunset Rd #250, Las Vegas, NV 89148
How do I initiate a cash transfer in to Provident Trust Group using the paper Incoming Transfer Form?
To initiate a transfer of cash into your account at Provident Trust Group, please complete the Incoming Transfer Form and select either Option A) Complete Transfer or Option B) Partial Transfer and select Cash. Please enter the amount of cash you would like to transfer in the line beside the Cash option. If selecting a “Complete Transfer”, please note that Provident Trust Group cannot hold publicly traded stock, bonds, or mutual funds. This means that all assets must be liquidated prior to submitting the request. Incoming Transfer Forms must be sent to Provident Trust Group so that we can execute the document and include a Letter of Acceptance with our submission to your current custodian. Sending this form directly to them without our signature or letter of acceptance will result in the rejection of your transfer request. This form can be sent to Provident Trust Group via fax or email (if the resigning custodian accepts faxed transfer requests) or mail (required if the resigning custodian requires original transfer requests).
How do I initiate a cash transfer in to Provident Trust Group using the electronic Incoming Transfer Form?
To initiate a transfer of cash into your account at Provident Trust Group, log in to the Provident Trust Group Online Portal and click ‘Transfer-In Funds’. From there, the ‘Create New’ button in upper right on the screen will walk you through entering the information needed to complete the Incoming Transfer Form. Once your resigning custodian’s information is entered, select either Option A) Complete Transfer or Option B) Partial Transfer. Please enter the amount of cash you would like to transfer in the line beside the Cash option. If selecting a “Complete Transfer”, please note that Provident Trust Group cannot hold publicly traded stocks, bonds, or mutual funds. This means that all assets must be liquidated prior to submitting the request. If your resigning custodian accepts transfer requests via fax, you can complete the form using the digital signature option and submit to Provident Trust Group. We will review your form and fax it to your current custodian with our Letter of Acceptance. If your resigning custodian requires original signatures on documents, you will need to print the form, sign it and mail it to our offices for processing.
How do I initiate a transfer of an asset in to Provident Trust Group using the paper Incoming Transfer Form?
To initiate a transfer of assets into your account at Provident Trust Group, please complete the Incoming Transfer Form and select either Option A) Complete Transfer or Option B) Partial Transfer and select Asset. In the box beside the Asset line, put a description of the asset you are transferring. Requests to transfer an asset to Provident Trust Group must come with a recent statement from your current custodian. Please review the Incoming Asset One Sheet for additional information about the documents required to transfer assets to your account at Provident Trust Group. Incoming Transfer Forms must be sent to Provident Trust Group so that we can execute the document and include a Letter of Acceptance with our submission to your current custodian. Sending this form directly to them without our signature or Letter of Acceptance will result in the rejection of your transfer request. This form can be sent to Provident Trust Group via fax or email (if the resigning custodian accepts faxed transfer requests) or mail (required if the resigning custodian requires original transfer requests).
How do I initiate a transfer of an asset in to Provident Trust Group using the electronic Incoming Transfer Form?
To initiate a transfer of an asset into your account at Provident Trust Group, log in to The Provident Trust Group Online Portal and click ‘Transfer-In Funds’. From there, the ‘Create New’ button in upper right on the screen will walk you through entering the information needed to complete the Incoming Transfer Form. Once your resigning custodian’s information is entered, select either Option A) Complete Transfer or Option B) Partial Transfer. Please put a description of the asset you are transferring in the asset description box. You will be required to upload a recent statement from your current custodian. If your resigning custodian accepts transfer requests via fax, you can complete the form using the digital signature option and submit to Provident Trust Group. We will review your form and fax it to your current custodian with our Letter of Acceptance. If your resigning custodian requires original signatures on documents, you will need to print the form, sign it and mail it to our offices for processing.
What is a transfer?
A transfer is a movement of funds between two like accounts (i.e., Traditional IRA to Traditional IRA, Roth IRA to Roth IRA, etc.) from one financial institution to another.
How is a transfer different from a rollover?
A rollover can be a movement between like accounts (i.e. Traditional IRA to Traditional IRA) or movement between different accounts (i.e. 401(k) to Traditional IRA) from one financial institution to another. Please note that as of 2015, the IRS has issued limitations on the number of Rollovers that can be done between like accounts. Rollovers between like accounts can only be done once per rolling year. This means that if you roll funds over on August 20, 2017, you will not be able to complete another like to like rollover until August 21, 2018. Please see IRA One Rollover Per Year Rule for additional information regarding this change.
What is the difference between an indirect rollover and a direct rollover?
A direct rollover is when one financial institution sends funds directly to another. An indirect rollover is when one financial institution distributes funds to an individual and the individual must send the funds to their new financial institution. When doing an indirect rollover, it is important to be aware of a couple of key points.
- The amount sent to the new financial institution must be the same amount distributed from the old financial institution. This means that if funds were withheld for taxes, the amount withheld must be made up for by the client.
- Funds must be sent to the new financial institution within 60 days of constructive receipt of the funds from the old financial institution.
Do you require a medallion signature guarantee on transfer out requests?
Provident Trust Group only requires a medallion signature guarantee on transfer-out requests that are faxed to us. If the originals are sent by mail, we do not require a medallion signature guarantee.
Where can I locate account management forms on the Provident Trust Group website?
All forms needed by Provident Trust Group to take action on your account are located at: https://trustprovident.com/forms/. If you need assistance selecting a form or completing it, please contact our VIP Services Team or see the FAQ section on ‘What do I need to know to complete …’ and select the form you are looking to complete.
Where can I locate tax documents from previous years filed by Provident Trust Group?
Tax forms filed with the IRS and annual statements back to 2014 can be accessed via our Online Portal. Starting in May of 2017 with the Form 5498, forms were uploaded annually as soon as they were mailed. If you need a copy of an annual statement or tax form filed with the IRS prior to 2014, please contact our VIP Services Team.
What are the benefits of a Roth IRA?
Although a Roth IRA does not provide a deduction for contributions, it does provide some benefits that Traditional IRAs (pre-tax) do not.
- All earnings are tax-free when you or your beneficiary withdraw them (based on eligibility) for income
- There is no distribution penalty on certain withdrawals
- There is no annual Required Minimum Distribution after age 70½
Some important questions to consider before opening a Roth IRA are:
- How long will it be before you need to take a distribution from your IRA?
- What will your tax bracket be when you take a distribution?
- What type of earnings will you receive on your IRA until that time?
By contributing more, earlier, your Roth IRA will add greater tax leverage to your retirement savings, since it holds after-tax dollars. And since it’s a Roth IRA, you’re not subject to take minimum distributions when you reach 70½ which will allow your earnings to grow tax-free, longer.
What’s special about the Solo 401(k)?
There are several unique advantages offered by the Solo 401(k). They include:
- Significant tax-deductible contributions. Depending on your income, the Solo 401(k) may allow twice as much (or more) tax-deductible contributions, when compared to other self-employed retirement plans.
- The most generous “catch up” contributions for those 50 or older. An extra $5000 per year can be contributed for a Solo 401(k) vs $0-$2500 for other retirement plan types.
- Flexible funding requirements. Once established, no contribution is required in any year if it is not financially feasible. There is a maximum annual Solo 401(k) contribution, but no minimum required contribution. The contribution flexibility of a Solo 401(k) eliminates potential funding worries if there is a less-profitable year of business.
- Personal loans are permitted. 50% of the assets of the Solo 401(k) (or up to $50,000) may be borrowed using a Solo 401(k) loan. Money is available when needed tax-free and penalty-free, so the Solo 401(k) enables immediate tax savings and builds a source of funds that can be tapped in an emergency. This loan still requires a schedule payback over a period of 5 years or less.
- Simplicity – both to set up and maintain. Administration is minimal because complex discrimination tests are not required as with corporate 401(k) plans. IRS Form 5500 does not need to be filed unless the plan’s assets exceed $250,000 in value, although many CPAs and advisors suggest filing the 5500 annually in the first year that the plan is established.
How can I pay my annual fee?
- Pay online: Visit https://trustprovident.com/make-a-payment/. You will need to enter the account holder’s account number and the invoice number from the invoice you received.
- Pay by check: Mail check and the bottom portion of your invoice to: Provident Trust Group, LLC ATTN: Lockbox Department P.O. Box 3640 Ontario, CA 91761-0964
- Pay by phone: Call (888) 855-9856 and provide your credit card information over the phone.
- Pay from cash in account: You can call in to request that the invoice be paid from the cash in your account or send in your invoice with the box marked to pay from the cash in your account. Funds will sweep from your account automatically 45 days after the date on the invoice if the invoice has not been paid in another fashion.
Why do you charge fees?
When are fees due?
How does your fee structure differ from other custodians who custody traditional and alternative assets?
What supporting documents do I need to purchase an investment in my Provident Trust Group account?
The supporting documents needed to purchase an investment vary based on the investment being purchased. Documents needed for each investment type can be found on Section 3 of our Direction of Investment form.
In what types of accounts can I put alternative assets?
Alternative assets can be held in a variety of qualified accounts including Traditional IRAs, Roth IRAs, SIMPLE IRAs, SEP IRAs, HSAs, ESAs, and 401(k)s including Solo 401(k)s.
Can I purchase real estate that I or my corporation already owns with my account at Provident Trust Group?
No. This is potentially considered a prohibited transaction, per Internal Revenue Code 4975. You may not purchase a property or an interest in a property that is currently owned by any disqualified party. Per IRS Publication 590: disqualified parties include your fiduciary and members of your family (spouse, ancestor, lineal descendant, and any spouse of a lineal descendant), and more.
Can I invest funds in real estate from my account with Provident Trust Group using an LLC?
Yes, you may use a special purpose LLC to purchase and hold title to invest in real estate. This involves the forming of an LLC with the self-directed retirement account as an owner and/or member of the LLC. It is important to structure the ownership of your LLC to ensure that your investments do not constitute a prohibited transaction. Always consult a qualified tax attorney or CPA to properly structure your LLC to ensure it outlines the additional precautions to consider when investing with a qualified account.
Can I obtain a mortgage to invest in a property with my account at Provident Trust Group?
Yes, you may, but only with a non-recourse loan. Typically, you must put down 30 percent or more to obtain the loan and not all banks or lenders provide non-recourse loans.
What do I do if I determine that I need to pay UBIT or UDFI?
UBIT and UDFI need to be paid from your account’s cash balance at Provident Trust Group and we, as a passive custodian, need your authorization to make that payment. If you determine that UBIT or UDFI is owed, please send us an Authorization to Take Action Form with the ‘Pay 990-T’ box marked in Section 3. With the Authorization to Take Action Form, you will also need to complete the Form 990-T. We will then execute the Form 990-T and remit it to the IRS along with your UBIT or UDFI payment.
Where can I find more information on calculating UBIT or UDFI?
More information can be found on IRS.gov, particularly their page on Unrelated Business Income Tax. Additionally, many tax advisors and CPAs will be able to assist in the determination and calculation of UBIT and UDFI owed on your retirement account’s investments.
What is the process to send additional funds to an LLC that is already owned by my account with Provident Trust Group?
Because the LLC is owned by the qualified account, funds need to first come to your account at Provident Trust Group (by contribution, rollover or transfer). The funds can then be sent to the LLC using a Direction of Investment Form. This allows Provident Trust Group to record the contribution, rollover or transfer into your qualified account and the purchase of additional shares of the LLC.
What is a non-recourse loan?
Non-recourse loans are the only types of loans that are permitted to be utilized within a qualified account. Traditional mortgages use personal assets and accreditation as security for the loan. Since personal assets cannot stand as security for loan within a qualified account, the only recourse the bank has is to go after the property itself. Therefore, they typically will require a higher percentage of the cost of the property to be used as the down payment. Please consult your tax adviser about any Unrelated Debt Financed Income Tax (UDFI) that could arise due to obtaining a non-recourse loan.
Can my account invest with other partners, including myself?
Yes, your IRA can invest with other partners and yourself individually. However, it is important to consult legal counsel in these situations to observe formalities and rules that may be associated with that investment.
Can Provident Trust Group provide tax or legal advice regarding your investment?
No. If you should need tax or legal advice regarding your investment, you may engage a specialized tax law firm to provide the needed advice. Attorney-client privilege would then exist between you and the firm of your choice.
How should an investment made in my account at Provident Trust Group be titled?
Investments made from accounts at Provident Trust Group must be titled ‘Provident Trust Group, LLC FBO YOUR NAME ACCOUNT TYPE’ (example: Provident Trust Group, LLC, FBO John Smith Roth IRA).
Why is Provident Trust Group listed as the owner of my asset?
As custodian, Provident Trust Group owns the assets in each account for the benefit of (FBO) your individual account. This means that Provident Trust Group executes all investment documents and all documents related to the sale of the asset. This titling also ensures that the IRS recognizes that you are not personally benefiting from the assets held in your account before retirement. This allows you to recognize any potential tax benefits for which you might be eligible.
What is the maximum loan that can be taken from a Solo 401(k) account?
A loan can be taken from a 401(k) account for no more than $50,000 or 50% the value of the account (whichever is less). Please see Retirement Plans FAQs Regarding Loans at IRS.gov for more information.
Escrow Account Questions
General Account Questions
What is escrow?
What is Escrow Administration?
Why do I need an Escrow Administrator?
- As the escrow administrator, Provident Trust Group can manage all or a portion of the financial record keeping requirements. Services are fully customizable based on the complexity of your agreement.
- An escrow administrator will provide a complete and competent shareholder reporting on an annual or semi-annual basis, in formats that are clear and comprehensive in nature.
- An escrow administrator provides transparency to all parties with real-time online access to balances, along with email and text notifications of account activity.
What would I need to do to open an escrow account at Provident Trust Group?
- We will need to review a summary of the scope of duties included in the Escrow Agreement you wish to put in place.
- The review process can take up to 7 – 10 business days.
- Once the review has been completed, we will need a completed Escrow Application.
What is an Escrow Agreement?
Can Provident Trust Group provide tax or legal advice?
Can I see my account online?
Does Provident Trust Group send out statements?
Where can I obtain an escrow fee schedule?
Trust Account Questions
General Account Questions
What is a Trust?
A trust is a legal entity that holds assets, such as cash or property, that is intended to provide benefit to an individual, group or organization. A trust generally involves a grantor, beneficiary, and trustee.
What is a Trust Agreement?
A trust agreement is a document that spells out the rules the trustee wants followed for assets held in trust for the trust’s beneficiaries.
What are common objectives for trusts?
To reduce the estate tax liability, to protect assets in your estate and to avoid probate.
What is probate?
It is a legal process that takes place after someone dies. It includes:
- Proving in court that a deceased person’s will is valid;
- Identifying and accounting for the deceased person’s assets;
- Appraising any of the deceased person’s property;
- Paying outstanding debts; and
- Distributing the remaining assets per the instructions of the will. If there is no will, distributing the assets per state law of the deceased person’s residency.
What is a trustee?
The person in charge of the trust who makes sure everything in the trust stays in working order per the trust instructions.
What is a directed trustee?
It is a trustee that is directed by several other trust participants in implementing the trust’s execution.
What is a trust protector?
It is a person appointed under the trust instrument that can direct or restrain the trustees and make sure the best interests of the trust are followed. Usually it is a third-party that acts as a spokesperson between the beneficiaries and the trustees.
What is a beneficiary?
It is the person or institution that stands to receive some or all the assets that were placed into the trust. If an original owner of an account dies, the person or entity designated as the “beneficiary” is the entitled party to receive the assets with in the deceased person’s account.
What is the name of the person that sets up the trust?
The person is commonly known as either the trustor, settlor or grantor.
What is a revocable trust?
It is when you place assets in the trust and at some point, in the future, undo the transfer by removing the assets and terminating the trust.
What is an irrevocable trust?
It is when you place assets into the trust, however, you can’t retrieve the assets. For all intents and purposes, the assets now belong to the trust and not to you personally.
What is an asset-protection trust?
A trust that holds funds on a discretionary basis. This type of trust is set up in an attempt to avoid or mitigate taxes, divorce and bankruptcy on the beneficiaries.
Who should consider establishing an asset protection trust?
Typically established by individuals in high risk occupations (i.e., attorneys, doctors, dentists, etc.) and very wealthy individuals that realize they are targets for creditors due to their net worth. Asset protection trusts can also be used in lieu of prenuptial agreement.
Are there any tax reasons to establish an asset protection trust?
In certain situations, an asset protection trust can be used to eliminate or reduce the imposition of state income taxes. An asset protection trust may also be used to remove assets from a grantor’s estate while still allowing the grantor to potentially benefit from the trust assets.
What would I need to do to open up a trust account at Provident Trust Group?
We require that you send us a copy of your trust documents and a summary of the scope of duties for review. The review process can take up to 7 – 10 business days.
Can Provident Trust Group provide tax or legal advice?
No. If you should need tax or legal advice regarding your trust, we advise you speak with your tax professional or attorney. Mostly likely it is the attorney or estate planning attorney that drafted your trust instrument.
Can I see my account online?
Yes, upon account establishment, you will be able to register on our online portal and get access to your account at www.portal.trustprovident.com
Does Provident Trust Group send out statements?
Yes, Provident Trust Group sends out annual statements in January each year. However, if you should need a statement any other time, please contact Provident Trust Group.