Investment in Swiss annuity through self-directed IRA
The self-directed IRA becomes the owner and beneficiary of the annuity, and you are the insured. The annuity is administered through a custodian for your IRA. The Swiss insurance company will communicate with the custodian through its Swiss agent and will expect the documents it needs to come from the custodian. You should not request or accept funds directly, as this would seriously damage the legal and tax standing of your IRA. You cannot borrow against the annuity.
Please note that the custodian does not provide tax, legal or investment advice. You will make all investment decisions and provide instructions to the custodian. You are responsible for thoroughly reviewing any proposed investment for soundness, advisability, permissibility under IRS regulations, and appropriateness to your tax situation. You may also direct investments of other types in the same IRA. Please contact us with any questions.
Information and Policies About Investment in Swiss Annuity Contracts through Self-Directed IRA
By directing investment in a Swiss annuity contract, the IRA account holder acknowledges and agrees to the following:
Owner & Insured
The owner will be the, IRA Custodian For (account holder’s name) IRA (account number). Applications and agreements should show the custodian as owner, annuity payee, and death beneficiary.Premiums, Annuity Payments and Distributions
No annuity premiums or payments should be made directly between the Swiss insurance company and the individual IRA account holder. The custodian will pay premiums to the insurance company from the IRA assets. The insurance company will pay annuity payments and benefits into the IRA through the IRA Custodian. The account holder may request distributions from the assets of the IRA as desired.Limited Role of Custodian
Your Custodian will perform the following:
Accept written investment directions accompanied by applications and agreements to be used.
Execute and forward necessary documents according to your written instructions.
Remit premiums to the agent, foreign exchange provider, or insurance company.
Receive and post annuity returns of investment as they arrive.
Provide periodic statements of your IRA and its holdings to you.
Receive, record, and report fair market value information to you and the Internal Revenue Service.
Mail a printed confirmation of receipt of payments to you.
Your custodian will not perform the following functions:
Review compliance of the investment with requirements for a self-directed IRA, including any matters related to Prohibited Transactions or Disqualified Parties.
Review the investment or any document for accuracy, sufficiency, compliance with applicable law, enforceability, or any other legal aspect.
Review or verify any information about the insured.
Monitor amounts due or past due, or initiate any collection action.
Monitor financial strength, continuity, or soundness of the insurance company or any other party.
Any other function not specifically required of an IRA custodian by law or regulation.
Fair Market Value Requirement
The custodian requires a Fair Market Value for each investment as of December 31 of each year to comply with reporting requirements of the U. S. Internal Revenue Code. The insurance company or agent designated for the investment must be willing to provide the information for this valuation.- Administrative Fees
In addition to standard administrative fees listed in the IRA Fee Schedule, there is an administrative charge for each investment transaction involving a Swiss Annuity Contract. Transactions include initial purchase, supplemental purchase, partial or full surrender, lump sum redemption, modification of terms, IRA to IRA transfer, death benefit administration, and similar matters.