Strata Trust Company Review

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Strata Trust Company was founded in Austin, Texas in the year 2008 as an extension organization of its owners, Horizon Bank, SSB, with its original name being Self Directed IRA Services, Inc. After rebranding and becoming the company we now know as Strata Trust Company, the organization aims to provide clientele with top-notch IRA, or Individual Retirement Account, options and services.

With over 350 years worth of combined experience in the self-directed IRA industry, Strata prides itself on its premium alternative investment services. In 2015, assets under custody exceeded $1 billion and continued to rise in the following years. By 2019, assets under custody had exceeded $2 billion.

Strata Trust Company’s bedrock core values are:

  • Service First & Client-Centric: Strata Trust aims to deliver the best customer service and give clients the best possible experience.
  • Stability: Strata Trust aims to strengthen relationships, products, services, and community.
  • Integrity: Strata Trust is grounded in trust and honesty for its clients.
  • Innovation: Strata Trust aims to use creative and innovative ways of thinking to set them apart from their competition.
  • Teamwork: Strata Trust aims to fulfill its every goal through collaboration and teamwork in order to continue to see growth as a company.

Like any investment business or company, Strata provides potential clientele with more than one way of investing. Strata Trust allows customers to open an investment account in:

Important to mention before we go more in depth with this review!

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Table of Contents
Precious Metals IRAs
Traditional IRAs
Roth IRAs
SEP IRAs
SIMPLE IRAs
Pros and Cons Of Strata Trust Company
Is Strata Trust A Scam?

Precious Metals IRAs

Strata Trust Company Review

Strata Trust allows you to invest in tangible goods like precious metals (i.e. gold, silver, platinum, etc.) in bullion or coins for your prospective individual retirement account. In order to start a Precious Metals IRA through Strata Trust Company, you would need to:

  • Open a self-directed IRA account and fill out the related forms.
  • Fund your IRA with a transfer, rollover, or annual contribution.
  • Find the dealer you want to work with for your precious metals purchase and provide the items outlined in the Precious Metals Investment Checklist.

Strata Trust also properly equips investors with a list of everything you should know before purchasing precious metals for IRAs:

  • Strata has no affiliation with any dealers or their sales representatives – As a wholly-owned subsidiary of Horizon Bank in Austin, Texas, Strata Trust works to help customers take heed of the fact that they only work within the company.
  • Complete your own due diligence when choosing a precious metal dealer – When looking for a precious metals dealer for your IRA, Strata stresses the importance of investors and clients being as judicious as possible in the selection process. Many dealers will raise sales prices, try to pass as more accredited than they truly are, and partake in fraudulent investment activities in general. This doesn’t seem to be what Strata Trust is about, so they want to make sure that clients proceed with caution.
  • The price you pay when purchasing precious metals through a dealer is important – Strata really wants to make sure that investors assuredly understand the purchase price upon signing transaction agreements. The dealer of your choosing obtains a percentage of your profits in your Precious Metals IRA with Strata Trust. The “spread”, which is the difference between a precious metals dealer’s cost and the price in which you pay, can vary, which is why it is, again, extremely imperative to choose a dealer wisely when opening an account.
  • The value that will be reflected on your Strata account will be based on spot price – Spot value, which is the current spot price multiplied by the ounces of fine metal contained in the coin or bar, is significant within an investor's account statements and online account access and can be used to report the fair market value of your account to the IRS.

Traditional IRAs

Strata Trust Company Review

A Traditional IRA gives individuals the opportunity to direct pretax income towards investments that can grow tax-deferred. Strata Trust informs investors what they would need to know upon opening a Traditional IRA account with them.

Traditional IRA features:

  • Income level will determine the annual tax-deductible contributions.
  • By the age of 59 1/2, withdrawals can be made and must be made by the age of 72. If a customer has turned 70 1/2 before the year 2020, withdrawals must be made by age 70 1/2.
  • Following the year 2020, the SECURE Act authorizes contributions.
  • If a withdraw is made before the age of 59 1/2, a 10% penalty is charged (unless they are pardoned).
  • Following the withdrawal of funds from a traditional IRA, taxes are paid on the earnings.
  • No matter the income limits, Traditional IRAs are able to be converted to Roth IRAs after income taxes have been paid.

Roth IRAs