I want to have an investment custodian that is not Schwab, Etrade, Vanguard or Fidelity. Is this possible?

Our plans work with virtually all custodians. When you set up a plan with us, you receive a trust document. This is a tax-exempt retirement trust.

You must ensure that whatever custodian or investment advisor you use, they set the plan up using the retirement trust document. If the investment account is not set up correctly, you could receive a 1099 at the end of the year for interest, dividends and capital gains in the account. This would be incorrect because these plans are only taxable when you take the money out of the plan.

In addition, if the contribution is not made to a tax-exempt retirement trust, the IRS could deem the contribution invalid and assess tax on the entire contribution. So, you want to make sure you set it up correctly upfront.

At Emparion, we are plan administrators and not financial advisors. During our onboarding process, we will discuss your investment custodian application(s) and account set-up process. We supply you with tips, articles, phone numbers, and any information we have to help you set up your investment account. But at the end of the day, it is your responsibility to get the investment account set up correctly.

When you complete your plan set up checklist, you have the option to have us set up the custodial investment account for an additional $400 fee. Also, it might make sense for you to have an investment advisor who can set up the account for you.