FAQ

Getting Started

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What is a self-directed IRA?

A self-directed Individual Retirement Account (SDIRA) only differs from other Individual Retirement Accounts (IRAs) in that the IRA owner has more control and flexibility when it comes to choosing investments. Typically, IRA investments are limited to exchange-traded assets like stocks and bonds. A custodian like Columbia Private Trust offers self-directed IRA owners expanded investment options that include alternative investments.

What is the role of my self-directed IRA custodian?

If you choose to invest in alternative assets with an IRA or other qualified plan, you must have a self-directed IRA custodian. This is required by the IRS.

The self-directed IRA custodian is responsible for holding and administering the assets of your account. There is extensive recordkeeping required by the IRS and the self-directed IRA custodian should help you handle the reporting of all investment activity within the account, including quarterly reports, processing of annual asset valuations and other documentation.

Investors and their advisors — not the IRA custodian — are solely responsible for evaluating the investment’s merits and suitability. As the term "self-directed IRA" implies, you are in control and making all investment decisions.

Learn more about working with a custodian.

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Managing Your Account

Opening an Account

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How do I open a Columbia Private Trust account?

Columbia Private Trust’s easy and secure online application will guide you through opening a traditional, Roth, or SEP (Simplified Employee Pension) IRA.

Learn more about opening another type of retirement account or plan.

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Funding Your Columbia Private Trust Account & Transfers In

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How do I fund my new Columbia Private Trust account?

You can fund your new Columbia Private Trust account by electing to transfer cash and/or assets into the account. A transfer of cash can be requested online by logging into your account, hovering over the dollar bill icon, and choosing Transfer in Cash. A transfer of cash and/or assets can be requested by completing the Traditional Roth Rollover Request form.

Another way to fund your Columbia Private Trust account is to rollover funds from a qualified account at another institution. Please contact your current custodian to find out more information about rolling over funds to a Columbia Private Trust IRA.

How do I transfer/rollover cash and/or investments into my Columbia Private Trust account?

It’s easy to add cash and/or assets to your Columbia Private Trust account. You can do so online, when you first open your account, or you can do so later by filling out a Traditional Roth Rollover Request form. Be sure to have access to your current custodian information (firm, account number, contact number, etc.) when completing the form.

If you are transferring assets in-kind, you will need to provide instructions to Columbia Private Trust on which assets to transfer from your current account. Detailed instructions on how to do this can be found on the Traditional Roth Rollover Request form.

If you are rolling over from another qualified plan, please instruct your current plan to send cash and/or assets to Columbia Private Trust. Please be aware that rollovers are subject to certain IRS rules that limit your ability to roll over funds from an IRA over a 12-month period, as well as rules stating that once assets are distributed to an individual, he or she has 60 days to roll them over into another qualified plan.

How long does it take to transfer/rollover cash and/or investments into my Columbia Private Trust account?

Columbia Private Trust initiates fund transfer requests within two business days of receiving them. Non-cash assets may require additional documentation or time for review. You can call 800.962.4238 to discuss the potential timeline for your specific situation.

Please be aware that some custodians may take much longer to process transfer requests; for example, a 401(k) rollover could take several weeks.

The transfer process varies depending on the type of transfer and if there are assets that are being transferred in-kind. Cash-only transfers typically take a few business days, especially if the current custodian is an ACATS member (which Columbia Private Trust is as well).

Assets being transferred in-kind must go through an administrative review and this review process depends on how quickly Columbia Private Trust receives all the necessary documents from you and/or the investment sponsor.

What is Automated Customer Account Transfer Service (ACATS)?

ACATS — developed by the National Securities Clearing Corporation (NSCC) — is used by leading financial services organizations to transfer assets between a client account and an investment platform (or broker/dealer or bank) and/or custodian such as Columbia Private Trust. Only NSCC-eligible members or Depository Trust Company member banks can use the ACATS system. Columbia Private Trust is one of the few self-directed IRA custodians with this feature.

ACATS makes it possible for participating firms to efficiently and automatically enter, review, and generate instructions to settle the transfer of customer accounts with many different types of assets, including equities and cash. For more information about ACATS, visit Depository Trust Clearing Corporation (DTCC) — one of the world's largest securities depositories since 1973.

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Transfers Out

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How do I transfer/rollover cash out of my Columbia Private Trust account?

Similar to incoming transfers, the process is initiated by the receiving custodian. In this case, you must instruct your new custodian to send the cash transfer request to Columbia Private Trust.

Alternatively, you can choose to roll over funds directly from your Columbia Private Trust account to a non-IRA plan by making a cash distribution to yourself using the IRA Distribution Request form. If you choose to take the funds as a distribution to yourself personally, please be aware that those funds may be subject to taxes if they are not deposited into another qualified account within 60 days of distribution. Please consult a tax advisor to discuss your specific tax situation.

How do I transfer or distribute an asset out of my IRA?

Similar to the outgoing cash transfer process, you must instruct your new custodian to send the in-kind asset transfer request to Columbia Private Trust. Once the asset has been accepted by your new custodian, Columbia Private Trust will release it to the new custodian and remove it from your list of holdings.

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Distributions

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How do I take a cash distribution from my account?

Columbia Private Trust offers three convenient ways to take a cash distribution from your account:

1. Log in to your account, hover over the dollar bill symbol, and click Request a Distribution.
2. Submit an IRA Distribution Request form.
3. If you’ve taken a cash distribution from your account before, one of our Client Service Representatives can take your request over the phone. Call us at 800.962.4238.

How do I distribute an asset out of my IRA?

In-kind distributions can be processed using the IRA Distribution Request form. This form gives you the ability to indicate the investment you wish to put in your name and hold outside of the IRA. Additional paperwork may be required for certain assets such as real estate. The last known value of the asset will be reported as a taxable event on IRS form 1099R.

How long does it take to receive my funds when I request a cash distribution?

If sufficient cash is available in the account at the time of your request, the request will generally be processed within one business day.

Depending on the delivery method you choose, you will receive your funds:

• Wire: Same or next day
• ACH (direct deposit): Three business days
• Check sent via U.S. mail: Generally three to five business days, depending on postal service in your area

How do I set up a recurring cash distribution from my Columbia Private Trust account?

Similar to taking a regular distribution, setting up a recurring distribution can be completed by filling out the IRA Distribution Request form.

What is a Required Minimum Distribution (RMD)?

A Required Minimum Distribution, or RMD, is the required amount that traditional, SEP, and SIMPLE IRA owners and qualified plan participants must begin distributing from their retirement accounts by April 1 following the year they reach age 73*. RMD amounts must then be distributed each subsequent year (note: if the first RMD is taken the year following the year the account owner reaches 73, two distributions must be taken that year, one for the first RMD year and one for the second RMD year). Generally, RMDs only apply to traditional, SEP, and SIMPLE IRAs and not Roth IRAs.

Your RMD will be based on your age, your IRA’s previous year account balance, and a “life expectancy factor” that is provided by the IRS. The institution(s) where you hold your account(s) can calculate your RMD. However, institutions cannot see all the IRAs that you may hold in other places, so it is ultimately your responsibility to determine the total RMD amount for all of your accounts.

*SECURE 2.0 Act of 2022 will relieve employer plan participants from having to take RMDs on designated Roth accounts beginning in 2024

How do I satisfy my RMD?

IRA account owners can choose to take their cumulative RMD amount from one IRA, or by taking smaller amounts from all or some of their IRAs. The RMD does not have to be taken from just one or all of your qualified plans. Qualified plan participants who are required to take RMDs must take a withdrawal from each plan in which they are a participant and have a balance.

If you choose to take all or some of your RMD from your Columbia Private Trust account, you have three options to request your distribution:

1. Log in to your account, hover over the dollar bill symbol, and click Request a Distribution.

2. Submit an IRA Distribution Request form.

3. If you’ve taken a distribution from your account before, one of our Customer Service Representatives may be able to take your request for a cash distribution over the phone. Please call us at 800.962.4238 for assistance.

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Service Charges

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What are Columbia Private Trust’s service fees?

Columbia Private Trust's account fee schedule may vary depending on the type of investments you hold and the services you require. Learn more about Columbia Private Trust's service fees or see a Fee Schedule for IRA Services for more information.

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Conversions

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How do I convert my traditional IRA at Columbia Private Trust to a Roth IRA?

To request a conversion, you can complete the IRA Conversion/Recharacterization Request form. Please note that you may be subject to taxes by converting traditional IRA assets into a Roth IRA.

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General Account Maintenance

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Where can I find my Columbia Private Trust account number?

You can find your account number by logging into your Columbia Private account. 

How do I add or change my banking instructions on file?

You can change your banking instructions at any time by completing the Standing Instructions for Electronic Funds Transfers and returning it to us with a voided check. Return instructions are included on the form.

Who do I contact for questions regarding my account or my statements?

You are always welcome to call our Client Service Team at 800.962.4238 with any questions.

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Online Account Access & Maintenance

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How do I register to access my account online?

Getting registered for access to your Columbia Private Trust account online is quick and easy. Once you complete the short, one-time registration process, you will have immediate access to your accounts. To register, you will need your date of birth, Social Security number, zip code, and account email address. Visit our login page to register.

How do I update my contact information?

Keeping your contact information up-to-date is a quick and easy process. You simply log in to your account and select My Profile. From there, select Contact Information to update your contact information (including your email address).

How do I change my security questions and answers?

You simply log in to your account and select My Profile, followed by Security Information.

How do I change my credit or debit card information?

At Columbia Private Trust, we require all clients have up-to-date credit or debit card information on file. To change your information, log in to your account, select My Profile, then Payment Preferences, followed by Change, which is located above your card number.

How can I give my spouse or other interested party view-only access to my account online?

To give your spouse or another individual read-only access to your account online, complete and submit the Affiliated Party Authorization Update form. Once we receive the request, a contact ID will be assigned to the individual. Your designated interested party can then register online and select "Affiliated to an Account," then enter your account number and their contact ID. Note that interested parties cannot request transactions on your behalf.

I have access to my account online but still don’t see my transactions. How do I view them?

Once you log in to your account, click on your account number to view your detailed account information. From there, you can select the Transactions tab to see transactions from the past 30 days. To view older transactions, simply change the date in the "Settle Date-From" field. If you want to change the number of rows displayed, select My Profile and change the row count under Display Options.

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Closing Your Columbia Private Trust Account

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How do I close my Columbia Private Trust account?

A common way to close your Columbia Private Trust account is to complete the IRA Distribution Request form and complete the sections for a total distribution.  

Another common way to close your Columbia Private Trust account is to request a full transfer to another institution. Those types of transfers are initiated at the new, receiving custodian. When making the request to Columbia Private Trust, the receiving custodian can indicate that you wish to make a full transfer and close your current Columbia Private Trust account.

What are the service fees associated with closing my Columbia Private Trust account?

There is generally a one-time account closure service charge as well as separate re-registration fees for assets being transferred/distributed in-kind. Please review your fee schedule or call Columbia Private Trust’s Client Service Team at 800.962.4238 for a complete breakdown of fees.

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Alternative Investing

Key Factors to Consider When Making a Self-Directed IRA Investment

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What types of alternative assets are permitted in a self-directed IRA?

You can hold numerous types of alternative assets in your self-directed IRA, including, but not limited to:

• Real estate
• Private equity
• Promissory notes
• Offshore funds
• Precious metals

For more information on permissible alternative assets, check out our Investing Options page.

What types of investments or transactions are prohibited in a self-directed IRA?

A self-directed IRA gives you many more investment options and more flexibility than other retirement accounts. However, the IRS does prohibit certain investment types and transactions, and also restricts the ways you can use your investments.

You can find examples of these rules on our prohibited transaction page.

How do I identify a fraudulent investment?

As alternative investing has grown, so too has the prevalence of investment fraud. We encourage clients to be aware of investment fraud warning signs. The following are some red flags that may signal a fraudulent investment:

• Promise of excessive rates of returns
• Assurance that investment is “safe and secure”
• Pressure to “act fast”
• Any tone of desperation (e.g., “I need to make payroll”)
• Missing pages or incomplete documentation
• Unprofessional or hard-sell marketing presentations
• The promoter’s professional background is inconsistent with the investment idea
• Any mention of insider information

More information about investment fraud can be found at the North American Securities Administrators Association (NASAA).

When do I need to be concerned about UBTI or UDFI?

Columbia Private Trust provides an overview of the circumstances that could trigger UBTI (Unrelated Business Taxable Income) or UDFI (Unrelated Debt-Financed Income). However, before making any investment decisions, it’s important that you consult with a tax professional or financial professional to help with your unique situation.

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General Alternative Investment Questions

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How do I make an investment in an alternative asset with funds from my Columbia Private Trust account?

The investment process will vary depending on the type of asset you plan to purchase. Columbia Private Trust has developed checklists to get you started. Simply click on your asset type below:

• Real estate (PDF)
• Private equity (PDF)
• Unsecured note (PDF)
• Secured note (PDF)
• Convertible note (PDF)

How should the name of the investor be titled on documents related to my investment?

For all investments made using funds from an IRA at Columbia Private Trust, the name of the investor on all investment documentation should be titled "Columbia Private Trust Custodian FBO (Your Name) (Type of Account)."

How long does it take for my investment transaction to be completed?

At Columbia Private Trust, we do everything possible to keep the investment process moving along smoothly and quickly. Please keep in mind the process will vary based on the type of asset being acquired and any outside paperwork that needs to be completed.

Once Columbia Private Trust receives all of your required documents, the asset review process will take between two and three business days. Documents required from third parties will be reviewed within one to two business days of receipt. It typically takes anywhere from five to 10 business days for Columbia Private Trust to receive third-party documents.

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Real Estate Investment Questions

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Can I buy real property with funds from my Columbia Private Trust account? How?

Yes. For many years, Columbia Private Trust account holders have seen the benefits of investing in real property using their self-directed IRAs. We have blogged extensively about the subject as real estate is one of the most popular investment types that clients hold in their accounts at Columbia Private Trust.

To make a direct real estate investment, the Real Estate Investment Authorization form outlines all of the documents that will you need to assemble to purchase property with your self-directed IRA funds. Just fill out the appropriate forms and submit them with the other required documentation to get started.

You can also call our Client Service Team at 800.962.4238 for more information and assistance.

How can I purchase a piece of property with my Columbia Private Trust account if I only have enough cash available to cover a portion of the purchase price?

Self-directed IRA investors may be able to use a non-recourse loan to help finance a real estate investment. 

Keep in mind that the IRA must make all loan payments on non-recourse loans (the IRA owner may not make payments personally). Additionally, any income produced by a debt-financed property held in an IRA may result in UDFI tax liability.

Can I invest in a Real Estate Investment Trust (REIT) with funds from my Columbia Private Trust account? How?

Yes. The process will depend on whether you are purchasing a public or private REIT. To purchase a publicly traded REIT, you will need to fill out a Standard Investment Authorization form. Private REITs can be purchased by filling out a Private Equity Investment Authorization form. If you are purchasing a private REIT, it may be necessary for the investment sponsor to complete this Private Equity Investment Notification form and submit it to Columbia Private Trust.

If you have questions, you can reach our Client Service Team directly by calling 800.962.4238.

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Note Investment Questions

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Can I buy or invest in Deeds of Trust, mortgage-backed notes, or secured notes using funds in my Columbia Private Trust account? How?

Yes. Investing in notes secured by deeds of trust or other secured notes has been a common strategy for investors looking to diversify their portfolios. Many investors also look to these types of investments for their generally steady stream of income via principal and interest payments which flow back into their Columbia Private Trust accounts, as well as the security that comes with an investment backed by real property or other collateral.

To start the investment process, please fill out the Note Investment Authorization and return it to Columbia Private Trust.

If you have any questions, you can speak with our Client Service Team by calling 800.962.4238.

Can I make an unsecured loan to an individual or company with funds from my Columbia Private Trust account? How?

Yes. Many investors have found that note investments can be a viable way to help grow your retirement account. You can make an unsecured loan with funds in your Columbia Private Trust account by filling out this Note Investment Authorization and returning the completed form to Columbia Private Trust.

If you have any questions, you can speak with our Client Service Team by calling 800.962.4238.

Can I make a convertible note investment with funds from my Columbia Private Trust account? How?

Yes. Companies, especially start-ups, have issued convertible debt as part of their financing strategy and that strategy is still one of the most common ways for early-stage start-ups to raise capital in today's ever-changing financial landscape.

To invest in a convertible note, simply fill out the Convertible Note Investment Authorization form and return it to Columbia Private Trust. In addition, the investment sponsor will need to complete the Private Equity Investment Notification form and submit it to Columbia Private Trust.

If you have questions, you can call our Client Service Team directly at 800.962.4238.

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Private Equity Investment Questions

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Can I invest in a Limited Liability Company (LLC) with funds from my Columbia Private Trust account? How?

Yes. LLCs are a common way for investors to make equity investments within their IRAs at Columbia Private Trust. LLCs can be structured in many ways, ranging from single-member or "checkbook" LLCs to the more common multi-member LLC structure. Because of the wide variety of structures and the costs associated with creating and setting up LLCs, please consult with a tax or legal professional before making any investment decisions.

In order to invest in an LLC with your Columbia Private Trust account, the Private Equity Investment Authorization form will outline the steps you will need to follow to invest in an LLC. In addition, the investment sponsor will need to complete the Private Equity Investment Notification form and submit it to Columbia Private Trust.

If you have questions, you can reach our Client Service Team directly at 800.962.4238.

Can I invest in a Limited Partnership (LP) with funds from my Columbia Private Trust account? How?

Yes. Limited Partnerships are another common way for Columbia Private Trust account holders to make equity investments. For more information, check out our blog, which details the difference among various equity investment types. Please be aware that LP structures and rules can vary so we recommend that you consult a tax or legal professional before investing.

To invest in a Limited Partnership, please complete the Private Equity Investment Authorization form. In addition, the investment sponsor will need to fill out this Private Equity Investment Notification form and submit it to Columbia Private Trust.

If you have questions, you can reach our Client Service Team directly at 800.962.4238.

Can I invest in Offshore Funds with funds from my Columbia Private Trust account? How?

Yes. Investing in Offshore Funds is another way for investors to diversify their portfolios.

To get started, please fill out the Private Equity Investment Authorization form and return it to Columbia Private Trust along with the other required documentation. In addition, the investment sponsor will also need to fill out the Private Equity Notification form and submit it to Columbia Private Trust.

If you have questions, you can reach our Client Service Team directly at 800.962.4238 .

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Standard/Market Traded Investment Questions

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Can I buy mutual funds with my Columbia Private Trust account?

Yes. Rather than simply holding excess cash in your account, you can invest that cash in mutual funds at no additional cost to you. Columbia Private Trust provides the option to invest in more than 20,000 mutual funds with our online trading tool. This allows you to invest your extra cash until you need it for an unexpected IRA-related expense, or until you uncover your next alternative investment opportunity.

To get started, log in to your account, hover over the double arrows symbol, click Place Buy Order, and follow the outlined steps. Alternatively, you can complete the Standard Investment Authorization form or call our Client Service Team at 800.962.4238 to place an order over the phone.

Can I purchase an annuity with funds from my Columbia Private Trust account?

Yes. You can use a self-directed IRA to invest in annuities just as you would with most other types of qualified accounts. Since many situations are unique, please call our Client Service Team at 800.962.4238 for information about purchasing annuities.

Can I buy and sell publicly traded equities (stocks) with funds from my Columbia Private Trust account?

Yes. You can use a self-directed IRA to invest in publicly traded equities just as you would with most other types of qualified accounts. This gives you the ability to invest the cash in your Columbia Private Trust account into more liquid investments until your next alternative investment opportunity comes along.

Since many situations are unique, please call our Client Service Team at 800.962.4238 for more information about purchasing publicly traded securities.

Can I buy and sell fixed income securities with funds from my Columbia Private Trust account?

Yes. You can use a self-directed IRA to invest in fixed income securities just as you would with most other types of qualified accounts. Since many situations are unique, please call our Client Service Team at 800.962.4238 for information about purchasing fixed income securities.

Can I set up a Brokerage or Managed Account within my Columbia Private Trust account?

Yes, you can set up a brokerage or managed account within your Columbia Private Trust account. Since many situations are unique, please call our Client Service Team at 800.962.4238 for information about setting up a brokerage or managed account.

Can I purchase a Certificate of Deposit (CD) from a third-party bank with my Columbia Private Trust account?

Yes, you can purchase a CD from a third-party bank with your Columbia Private Trust account. Since many situations are unique, please call our Client Service Team at 800.962.4238 for information about purchasing CDs.

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Investment Maintenance

General Investment Maintenance

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How do I sell an alternative investment that I hold in my Columbia Private Trust account?

The requirements for selling an alternative investment vary significantly by asset type and investment structure. Please be aware that certain alternative investments are not liquid and may not be able to be sold.

Since most situations are unique, please call our Client Service Team at 800.962.4238 for information about selling an alternative investment held in your Columbia Private Trust account.

I have a question about one of my investments. Who do I contact for help?

Many questions about your investment can be answered by your investment sponsor, loan servicer, loan originator, mortgage broker, etc. However, if your question is related to how your investment is reflected in your Columbia Private Trust account, you can call our Client Service Team at 800.962.4238 or email [email protected].

The IRS requires that my custodian report the value of my IRA to the IRS on an annual basis. How do I provide valuation information that I may have to Columbia Private Trust?

For real estate investments, you will receive a notice 12 months after the last valuation date asking you to provide Columbia Private Trust with a comparative market analysis for the property. It is your responsibility to obtain this information, and you can submit it to [email protected] for processing.

For private equity investments, a letter and notice will be sent to your Investment Sponsor requesting that they provide Columbia Private Trust with a year-end value for your investments. It is always a good idea to check with your Investment Sponsor to ensure they have submitted the information to Columbia Private Trust.

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Real Estate Investment Maintenance

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I own a piece of property in my Columbia Private Trust account and I rent it to a tenant. How should my rent checks be titled and where should they be sent for deposit?

How do I direct Columbia Private Trust to pay my investment property expenses from my IRA?

No action is required to pay mandatory bills, such as property taxes, HOA dues, insurance, loan payments, utility bills, etc. unless you have a designated property manager who handles your investment property-related expenses (if you are using a property manager, please see the answer to the next question.).

Columbia Private Trust processes mandatory bill payment upon receipt, as long as the funds are available in your IRA. For example, tax bills of $5,000 or less that are received by Columbia Private Trust will be paid in full by the first installment date, as long as you have the cash available in your Columbia Private Trust account.

Columbia Private Trust does, however, require your authorization to pay optional bills such as property management advances, maintenance bills, attorney fees, and home improvement contractor invoices. In these instances, you may submit your expense request by logging in to your Columbia Private Trust account online.

Interested parties affiliated to your account may not authorize expense requests. If you would like to allow someone other than yourself to submit an expense request, please complete the Limited Power of Attorney form and submit it to Columbia Private Trust.

Property managers affiliated to your investment are able to authorize expenses under $5,000 (excluding property management advances), provided the Expense Payment form is submitted to Columbia Private Trust along with supporting documentation such as bills, invoices, or estimates.

If you have any questions regarding investment property expenses and how they are handled, please call our Client Service Team at 800.962.4238.

How do expenses get paid if my real estate investment expenses are handled by a designated property manager?

Your investment property manager is required to set up a property management account with a financial institution. This account should be funded with either income from the real estate investment (such as rental income) and/or funds transferred from your Columbia Private Trust account. The funds can then be used to pay for expenses related to the property held in your Columbia Private Trust account. Be sure to have the property manager notify the billing parties of this arrangement to ensure bills are sent directly to the property manager's address to avoid delays in payment.

If you’d like to have funds transferred from your Columbia Private Trust account to your property manager's designated account, you can log in to your Columbia Private Trust account to submit a request.

Property managers affiliated to your investment are also able to authorize expenses under $5,000 (excluding property management advances), provided the Expense Payment form is submitted to Columbia Private Trust along with supporting documentation such as bills, invoices, or estimates.

Please call our Client Service Team at 800.962.4238 if you have additional questions.

How much money can I transfer from my IRA into my designated property manager’s account?

The property manager’s account should include adequate funds to cover anticipated expenses related to the investment property. For instance, the account could include one quarter’s or one year's worth of expected expenses. The balance should not significantly exceed these projections.

What kind of real estate expenses can the investment property manager pay?

The investment property manager should pay all mandatory real estate expenses, such as property taxes, HOA dues, insurance, utility bills, and mortgage payments. The property manager can also pay optional real estate expenses such as cleaning, construction, and termite inspections.

Property managers affiliated to your investment are also able to authorize expenses under $5,000 (excluding property management advances), provided the Expense Payment form is submitted to Columbia Private Trust along with supporting documentation such as bills, invoices, or estimates.

Is there any type of expense the investment property manager should not be paying?

The investment property manager should not pay any type of expense that does not relate to the specific investment property held in your Columbia Private Trust account.

If you are not sure whether an expense is allowed, please call our Client Service Team at 800.962.4238.

Can the IRA owner be an authorized signer/person on the property management checking account that is established for the individual property?

No. The IRA owner cannot be an authorized signer/person on the property management checking account.

Can the investment property manager authorize Columbia Private Trust to transfer funds from my Columbia Private Trust account to the property management account?

No. Your property manager is not authorized to transfer funds. We will need a letter of instruction executed by you, the account owner, to complete the transfer.

Can the property management account pay the bills related to the investment property with funds that do not come from the IRA?

No. All funds used to pay the IRA's allocable portion of investment property-related bills must be paid with IRA funds.

If my IRA only owns a percentage of the real estate investment property held in my Columbia Private Trust account, does the IRA need to pay only its percentage of the expenses associated with such property?

Yes. Your IRA must pay its percentage of the expenses based on the percentage of the account's ownership. For example, if your IRA owns 60% of a property and property taxes are due, your IRA should pay only 60% of the total bill.

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Note Investment Maintenance

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I invested in an unsecured note, convertible note or Deed of Trust with funds from my Columbia Private Trust account. Where should my monthly principal or interest payments be directed?

All payments should be mailed to:

Columbia Private Trust
Processing Center
P.O. Box 981012
Boston, MA 02298

Please make sure the payee on all funds for your account is listed as “Columbia Private Trust Custodian FBO (Your Name) (Type of Account)."

I invested in an unsecured note with funds from my Columbia Private Trust account, but the borrower is unable or has refused to pay me back. What are my options?

While we cannot provide advice, you typically have three options:

1. Pursue collection from the borrower via the collections process.
2. Modify the terms of the note.
3. In certain circumstances, you may be able to write off the investment as bad debt.

Because each situation is unique, please contact our Client Service Team at 800.962.4238 to review your options and keep Columbia Private Trust updated about the status of your investment. Consult with your advisor or attorney to determine the best way to address your situation.

I invested in a note secured by a Deed of Trust (or other secured note) with funds from my Columbia Private Trust account, but the borrower is unable or has refused to pay me back. What are my options?

While we cannot provide advice, you typically have four options:

1. Pursue collection from the borrower via the collections process.
2. Modify the terms of the note.
3. In certain circumstances, you may be able to write off the investment as bad debt.
4. In some states — and depending on the type of collateral instrument — you have recourse for a delinquent note that is backed by real property. That means you could foreclose on the property and take the property in lieu of the note. In this case, you would obtain the property and that would become the asset in your Columbia Private Trust account, replacing the former note.

Because each situation is unique, please contact our Client Service Team at 800.962.4238 to review your options and keep Columbia Private Trust updated about the status of your investment. Consult with your advisor or attorney to determine the best way to address your situation.

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Private Equity Investment Maintenance

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I own a percentage interest in a private equity investment in my Columbia Private Trust account. Where should dividend and return of capital payments be directed?

Please direct all payments to:

Columbia Private Trust
Processing Center
P.O. Box 981012
Boston, MA 02298

Make sure the payee on all funds for your account is listed as “Columbia Private Trust Custodian FBO (Your Name) (Type of Account)." The private equity investment sponsor or issuer can also send payments electronically to Columbia Private Trust for your benefit (please make sure that the Account Owner’s name and/or account number is referenced in the wire information).

I own a percentage interest in a private equity investment in my Columbia Private Trust account. Who provides Columbia Private Trust with a value for my portion of that investment?

Your investment sponsor is responsible for providing the value of the investment to Columbia Private Trust.

IRS rules stipulate that Columbia Private Trust report the value of your entire account to the IRS annually. To obtain this valuation, Columbia Private Trust’s Operations Team sends letters 12 months after the last valuation date to investment sponsors requesting an updated value for each of their IRA investors.

Investment sponsors can provide this valuation by sending in a year-end statement with valuations to Columbia Private Trust. It is a good idea for investors to check with their investment sponsor to see if they have completed the required information and sent a valuation to Columbia Private Trust.

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Financial Professionals and Institutions

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I am a capital raiser. How can Columbia Private Trust help me and my investors who want to use IRA funds to invest?

Columbia Private Trust can help your capital raising efforts by streamlining the process for IRA investments in your particular fund or entity. With Columbia Private Trust’s technology, you can electronically submit documents for review and invite prospective investors to open Columbia Private Trust IRAs electronically to invest in your offering.

For more information about what Columbia Private Trust can offer, call 855.453.4960 to speak with a Sales Representative.

Can Columbia Private Trust’s platform integrate with my Portfolio Management System?

Currently, Columbia Private Trust has integration capabilities with a variety of online Portfolio Management Systems, including Advent, Addepar, DBCams and Schwab PortfolioCenter. To obtain a full list of our integration capabilities, please call us at 855.453.4960 to speak with one of our Sales Representatives.

Can Columbia Private Trust advertise my fund to their clients?

Unfortunately, Columbia Private Trust’s role in this process is solely as a directed custodian. Columbia Private Trust does not solicit or endorse investments that are held by any of our account owners.

What documents does Columbia Private Trust need to review an investment opportunity?

The following checklists outline the documentation needed for some of the most popular types of investments that are held by Columbia Private Trust’s self-directed IRA clients:

• Real estate (PDF)
• Private equity (PDF)
• Unsecured note (PDF)
• Secured note (PDF)
• Convertible note (PDF)

Don’t see your investment type or have additional questions? Give us a call at 855.453.4960.

When I use Columbia Private Trust’s Pro Portal to invite prospective investors to invest in my fund, how do they open an account with Columbia Private Trust and invest in my fund?

Once you send an invite, your prospective investor will receive an email from Columbia Private Trust that contains a personalized hyperlink. They can click on the link to be directed to Columbia Private Trust’s website, where they can open an IRA. Our online account opening process makes setting up an IRA easy and efficient.

If your investors have any problems accessing the new account opening tool or have any questions about the information that Columbia Private Trust requires, they are welcome to call our IRA Specialists at 855.453.4960.

As a capital raiser, do I need to provide valuations to Columbia Private Trust for all my IRA investors who hold my investment with Columbia Private Trust?

Yes. The IRS requires that IRA custodians report the value of IRAs to account owners and to the IRS on an annual basis. Given this rule, we require that issuers and asset sponsors provide Columbia Private Trust with a valuation for each Columbia Private Trust IRA investor at least once per year.

Columbia Private Trust is also happy to update the value of any client’s investment if you provide us with a statement. Issuers and investment sponsors can send statements to [email protected] for processing.

What is Automated Customer Account Transfer Service (ACATS)?

ACATS — developed by the National Securities Clearing Corporation (NSCC) — is used by leading financial services organizations to transfer assets between a customer account and an investment platform (or broker/dealer or bank) and/or custodian such as Columbia Private Trust. Only NSCC-eligible members or Depository Trust Company member banks can use the ACATS system. Columbia Private Trust is one of the few self-directed IRA custodians with this feature.

ACATS makes it possible for participating firms to efficiently and automatically enter, review, and generate instructions to settle the transfer of customer accounts with many different types of assets, including equities and cash. For more information about ACATS, visit Depository Trust Clearing Corporation (DTCC) — one of the world's largest securities depositories since 1973.

Is Premier API a type of software?

Premier API is not software. It is a set of APIs that an investment platform uses to communicate with Columbia Private Trust’s platform. It is not a dedicated technology platform and not a “single sign-on” solution. Premier API is designed to provide investment platforms with an efficient and streamlined way to provide clients with the option to invest in your platform’s offerings with an IRA.

What are the technical specifications of Premier API?

Columbia Private Trust provides REST API services to third party institutions as approved by Columbia Private Trust to perform various actions programmatically. The API was created to improve communications between third party partners and Columbia Private Trust.

Columbia Private Trust APIs are restricted by the third party's IP address. In addition, all API calls require an API Token that is registered specifically to the institution.

Will investment platform clients get communications from Columbia Private Trust?

Clients will receive a confirmation email and a customized Welcome Kit from Columbia Private Trust, which will reference the investment platform and can be customized to include platform branding. Clients will also receive quarterly IRA account statements and have the option to access their account via Columbia Private Trust’s online client center.

Columbia Private Trust also sends transactional emails to confirm client actions, such as changes to the client profile, additions or updates of beneficiaries, completed contributions and distributions, additional investments, and more.

There are customization options depending on the level of client ownership and the overall client experience which can be discussed.

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