The Entrust Group Review: Self-Directed IRAs, 401(k)s, And More

The Entrust Group is a self-directed IRA and Solo 401(k) provider allowing you to invest for retirement in anything the IRS allows. Entrust is also one of the few providers that allow for self-directed HSA and Coverdell education savings accounts.

Self-directed accounts from Entrust can hold real estate, precious metals, direct business investments, cryptocurrency, and much more.

While several companies offer self-directed retirement plans, Entrust has been around longer than most competitors and offers several unique investment tools. Here’s a closer look at how self-directed IRAs and Solo 401(k) plans offered by Entrust work so you can better judge if it’s a good fit for your investment goals.

What Is The Entrust Group?

The Entrust Group is a dedicated provider of self-directed retirement accounts. Their main service is self-directed IRA administration, though they also offer self-directed Individual 401(k) accounts, Health Savings Accounts (HSA), and Coverdell Education Savings Accounts (ESA).

Self-employed small business owners and investors who want to invest outside of equities are in the best position to take advantage of The Entrust Group’s offerings. As mandated by the IRS, they are a passive custodian, meaning they don’t offer investment advice. Instead, they provide accounts to manage non-traditional investment assets beyond the stock market, bonds, and traditional investment funds.

The company is based in California and serves over 22,000 clients with over $4 billion under administration. It’s a 42-year-old company, making it one of the oldest self-directed IRA custodians in the industry.

What Does Entrust Offer?

The Entrust Group offers several types of self-directed investment accounts. While the self-directed IRA is the flagship product, other accounts may also be attractive to some investors.

Self-Directed IRA

The main product from The Entrust Group is a self-directed IRA. It comes in several variations, such as:

• Traditional IRA
• Roth IRA
• SEP IRA
• SIMPLE IRA

Traditional and Roth IRAs are most common, as anyone can have them. If you have an existing traditional or Roth IRA or have an old employer-sponsored 401(k) you want to roll over, a self-directed traditional IRA or self-directed Roth IRA could be a good choice.

SEP and SIMPLE IRAs are best for business owners. Each has nuanced contribution limits and rules. But with a self-directed plan, you can invest in alternative assets like real estate and more, along with stocks.

Individual 401(k) Plan

A self-directed Individual 401(k) account is offered for business owners and spouses employed by the business. With higher limits than SEP and SIMPLE IRAs, solo 401(k) accounts are an attractive option for owners of successful small businesses looking to put more away for retirement. Like other accounts from Entrust, you can invest in nearly anything you want, as long as it’s allowed by the IRS in retirement accounts.

Health Savings Account (HSA)

Arguably the best tax-advantaged account, an HSA allows pre-tax investments and tax-free distributions when funds are used for eligible healthcare expenses. But there’s no rule that you must reimburse yourself immediately, allowing you to effectively use the HSA as an ultra-tax-friendly retirement plan. If you want to buy real estate, cryptocurrency, or other eligible assets, a self-directed HSA could be a solid choice.

Education Savings Account 

Also known as a Coverdell account, an Education Savings Account allows saving for a child’s education with tax-free capital gains. Many investors are better off with a 529 plan, but high-net-worth households could consider a self-directed ESA.

What Assets Can You Invest In?

Entrust is really geared towards investors who would like to hold private companies and real estate in their accounts, but those are not the only assets you can hold in your self-directed account. In fact, you can hold almost anything in your account except collectibles, life insurance contracts, and ownership shares of an S-corporation.

Here’s what most people are looking for:

• Stocks, Bonds, ETFs, and Mutual Funds
• Real Estate
• Private Equity
• Private lending
• Precious Metals
• Cryptocurrency 

Note: Entrust is changing brokerage providers, so stocks, bonds, ETFs, and mutual fund trading may be limited. 

Online Client Portal

What really sets Entrust apart from other self-directed account providers is their online portal. Their online portal makes it really easy to manage your investments - especially private investments like real estate.

In fact, we believe that Entrust is one of the better SDIRA providers for real estate investing. They have features in the portal like “Pending Investment Requests” that allow you to monitor your new deal flow. They also have a great online bill payment setup that allows you to both pay your vendors, setup automatic payments, and it all flows back into the record-keeping system.

Their portal also allows you to track purchase price, market value, and more.

Third-Party Access

If you have an investment advisor or CPA that needs to have access, Entrust’s online portal makes setting up and managing third-party access very easy. They allow you to give and revoke access as needed, but this setup can make tax prep and investment management easier. 

Are There Any Fees?

Yes, like all SDIRA providers, there are fees. The fees you pay depend on your account value, asset type, and more. Entrust, overall, is in the middle of the pack for fees.

Fees start at $199 annually and are limited to a maximum of $2,299 for record-keeping. Investment-related transaction fees are not limited - the more you transact the more fees you could have - which is similar to most other SDIRA providers.

Here’s a glance at the fees you can expect from Entrust.

To start a new account, there’s an account establishment fee of $50. Then, you pay fees when buying and selling, plus annual recordkeeping fees.

The annual recordkeeping fee for accounts with one asset is $199 per year if valued at less than $50,000 or $199 + 0.15% of asset value for assets over $50,000. For accounts with two or more assets, the fee is $299 per year when assets are worth less than $50,000 or $299 + 0.15% of the asset value over $50,000.

It’s also important to note that the recordkeeping fee cap is per account, not account holder. So, if you have two accounts (SDIRA and Solo 401k), they can each be no more than $2,299 for recordkeeping. This is the same as every other provider since the recordkeeping is based on the account, not the account holder.

Purchase and sale fees include:

• Purchase, sale, exchange, or additional funding (per asset): $95
• Purchase, sale, or exchange of real estate assets: $175
• Purchase, sale, or exchange of real estate with a non-recourse loan: $250
• Purchase, sale, or exchange of precious metals: $0
• Purchase, sale, or exchange of crowdfunding with eligible companies: $0

You may encounter additional fees for less-common needs, such as wire transfers and rush transactions. Closing an account requires a $250 fee.

While everything else looks pretty good, you need to assess the fee schedule for your specific needs. Having an easy platform to manage your self-directed account is a huge win - from record-keeping to bill pay - but it does come at a cost.

How Does The Entrust Group Compare?

The Entrust Group has several major competitors in the self-directed retirement plan space. Those include Rocket Dollar and Equity Trust.

Rocket Dollar has slimmer offerings, with only self-directed IRA and Solo 401(k) accounts. But it’s much cheaper than Entrust. The Silver level account has a $360 setup fee, then costs $20 per month. Customers with more extensive support needs and Solo 401(k) accounts can level up to the Gold account, which costs $600 to set up and then $30 per month.

The ongoing cost for the Gold account is $360 per year, which is lower than many Entrust customers would pay. However, with Rocket Dollar you’ll have setup fees and other fees which could take 3 years or more to break even compared to The Entrust Group.

Equity Trust is another highly rated self-directed retirement account provider with the same lineup of IRA, 401(k), HSA, and ESA accounts you find at Entrust. Equity Trust also charges online fees based on the size of the account. New account fees are $50 when applying online or $75 when you send in a paper form. Ongoing costs start at $225 per year for accounts up to $14,999 and go up to $2,250 for accounts with $2 million or more.

How Do I Open An Account?

Opening an account is easy if your personal information and asset details are readily available.

1. Gather personal information: Start by preparing your information, such as your contact details, Social Security number, and information about your funding accounts, such as existing IRAs you want to roll over.
2. Setup online profile: Head to the Entrust website, set up your online profile with your personal details, and create your account login.
3. Open Entrust account: Pick the type of account you want and follow the simple steps to open. Pay close attention here, as different accounts have different tax treatment by the IRS.
4. Fund account: Roll over your existing retirement account (or accounts) or set up your funding source. Remember that retirement accounts have annual contribution limits set by the IRS.
5. Invest: With cash in your account, you can invest in real estate, precious metals, and almost anything else. Due to IRS restrictions, collectibles and a few other asset types are not supported.

The great thing about Entrust is that you can open and do almost everything online. The only thing that still requires a paper form is investing in precious metals.

Is It Safe And Secure?

The Entrust Group is generally safe and secure for your retirement account needs. 

As with any online financial account, it’s imperative that you use a unique password and follow other cybersecurity best practices, such as keeping your computer and smartphone updated to the latest versions.

The most likely way someone will break into your account is from reused passwords or a phishing scheme. Stay aware of cybersecurity threats to keep all accounts secure.

How Do I Contact Entrust?

Contacting Entrust  is easy via phone or email. The phone number is 800-392-9653. You can reach the company by email at TEG@theentrustgroup.com. It also lists a mailing address in Oakland, California for traditional mail inquiries.

Entrust Customer Service

We couldn’t find many past customer reviews online, though the company is accredited with an A+ rating by the BBB.

Of the reviews we could find, positive reviews focused on access to a wide range of assets, easy transfers, and a generally easy account opening process with good customer support. Negative reviews and complaints focused on high fees, difficulty transferring assets away from Entrust, slow customer response times, and a challenging process investing in precious metals.

In our research, we’ve found The Entrust Group has a team that is highly engaged in customer support and education.

Is It Worth It?

Overall, The Entrust Group has a solid self-directed account offering. However, you need to understand the fee schedule and make sure the offering meets your needs before jumping in. This company really gears its offerings to real estate investors and private equity investors who want to use their SDIRA or Solo 401k for these alternative investments.

While they do handle all investment types inside the accounts (equities, debt, precious metals, etc.), their features are really conducive to real estate investors due to features like online BillPay. 

The Entrust Group, available account types, investment options, and good customer support could be a good reason to choose Entrust for your self-directed IRA, Solo 401(k), HSA, or ESA needs.

To get started on your SDIRA journey, download their SDIRA Basics Guide.

Check out The Entrust Group here >>