Below, you will find the answers to our clients’ account FAQs.
If your question is not answered below, please feel free to reach out to our client services staff. Use the Chat feature in the bottom right corner, or call us at (239) 333-1032. Midland Trust is here to help!
Understanding My Account FAQs
What is a Fair Market Valuation?
A fair market valuation (FMV) estimates the market value of an asset based on what a willing buyer would pay to a seller. Midland requires a Fair Market Valuation (FMV) once per year, per asset. You can update your FMV by using your Midland 360 online portal and can also update the value by submitting a Fair Market Valuation Form. To update the FMV of an LLC, submit the LLC Fair Market Valuation Worksheet.
An RMD is the required amount of withdrawn funds from a pre-tax account once the account owner turns 72. RMDs are also required for inherited accounts. Traditional IRAs and 401(k)s are examples of a pre-tax account.
Unrelated Business Income Tax is a tax for operating businesses that utilize tax-exempt entities such as retirement accounts. UBIT income derives from a trade or business regularly carried out by the tax-exempt organization that is not substantially related to the exempt organization’s exempt function. 401(k) assets are not subject to UBIT. UDFI is capital gains on the profits from the sale of real estate or other IRA assets. You will want to verify with a CPA if your investment may generate UBIT or UDFI.
The tax due for UBIT is reported on IRS Form 990-T, and the rates are based on the current Trust Tax Rates. Trust tax rates accelerate faster than corporate and individual rates. The tax is calculated and paid annually. There is no tax on the first $1,0000 of net income.
What Are the Contribution Limits?
There are different contribution limits depending on your account type and your age. You can view the limits on our IRA contribution limits page.
What Do My Midland Fees Cover?
Midland fees cover the administration of your IRA account(s). The annual fees associated with your account cover items such as tax reporting, account maintenance, custody of the asset on behalf of the IRA, and processing any incoming and outgoing funds. Additional one-time transaction fees may apply. View the Midland Fee Schedule for details.
What is a 5498?
IRS Form 5498 reports contributions and/or rollovers made to the IRA. Fair Market Valuation (FMV) is also reported on Form 5498. Midland files this form annually on or before May 31st. You are not required to file this form with your tax return. However, you can find it under the “Documents” tab of your Midland 360 portal.
What is a 1099-R?
Tax Form 1099 reports various types of income for a given tax year. Midland uses a 1099-R, reporting the distribution of funds from a retirement account. You can find your 1099-R under the "Documents" tab of your Midland 360 portal. This form is also mailed to any client who took a distribution no later than Jan 31st of the following tax year.
Where Can I Find a Breakdown of Fees for My Account?
The email address on file receives an itemized breakdown of fees once a payment has come due or has been processed. Additionally, you can view all Fee Statements produced for your account under the “Billing” section of your Midland 360 portal.
Where Can I Find Statements for My Account?
You can utilize your Midland 360 online portal to create a custom snapshot for your account for a specified time. For a full, detailed account statement, go to your “Documents” tab. Midland uploads account statements quarterly.
Where Can I Find Tax Documents for My Account?
In your Midland 360 online portal under the “Documents” tab, you can see all tax-related documents generated for your IRA. These documents include any historical documents from previous tax years.
Managing My Account
How Do I Utilize Midland’s Online Portal, Midland360?
You can use Midland 360 to update profile/account information, view billing related topics, initiate sending funds from your account for bill pays, distributions, and investment, view account activity, and view/download most account documents.
How Do I Fund or Contribute to My Account?
Fund your account by making a personal contribution or IRA to IRA transfer. If eligible, you may contribute by making a rollover from a 401(k) or other Qualified Plan. You can fund your account by filling out the appropriate form or by logging into Midland 360.
How Do I Initiate a Rollover?
Rollovers are typically done between different types of retirement accounts. (i.e., IRA to 401(k)). Movements between like-kind accounts (i.e., IRA to IRA) are done as transfers. To roll funds over to another retirement account, we will need our distribution form completed and a signed letter of acceptance from the receiving plan/custodian. The difference between rollovers and transfers are the tax forms generated. Rollovers generate a 1099-R and typically a 5498.
How Do I Calculate My Required Minimum Distribution?
Select "Trading Account Withdrawal" from Quick Links on the right-hand side of your home screen.
Enter the appropriate details, then click "Next Page to Confirm."
Review the information for accuracy and click "Submit Request" for processing.
Provided the funds are liquid and ready to transfer, funds are typically returned to Midland within two to five business days.
Once the funds are received, they will be deposited back into your account at Midland and you will receive a confirmation email of the deposit.
How Do I Initiate an IRA to IRA Transfer When My Account Is All Cash?
Transfers are requested when you are moving funds and investments between like-kind retirement accounts. (i.e., Traditional IRA to Traditional IRA). To transfer funds to another IRA custodian, you will need to contact the receiving custodian and complete their required transfer paperwork. You will need to return the transfer paperwork to the custodian for them to sign. They will forward the completed paperwork to us for processing. The receiving custodian may require a recent statement of your Midland account. You can pull this from your Midland 360 portal under the documents tab.
The information they will likely ask for on the transfer form includes:
Current Custodian: Midland IRA
Account Number: Please use your seven digit Midland IRA account number
Overnight Address: 1520 Royal Palm Sq. Blvd., Suite 320, Fort Myers, FL 33919
Mailing Address: PO Box 07520, Fort Myers, FL 33919
Phone Number: (239) 333-1032
Fax Number: (239) 466-5496
You can let the receiving custodian know they can fax the transfer form over to us as we do not need originals and do not require a medallion signature guarantee.
What Is the Flow/Process for Transfers, Rollovers, and Distributions With an Active Trading Account?
For a Transfer or Rollover, contact the receiving custodian for transfer paperwork or letter of acceptance. If it's a Distribution, wait for funds to come in from TAW, and then submit a distribution request in the Midland360 portal.
Once the funds come back to Midland from the trading account withdrawal and we receive the transfer paperwork or a distribution request, then we can send the funds over to the new custodian or you personally.
How Do I Pay a Bill on My Account?
Submitting a bill payment is easy using Midland 360. Click here for instructions to pay your bill online.
How Does a Third Party Send Funds to My IRA Related to My Investment?
You can invite a third party to send funds to your account through Midland 360 by clicking “Invite Payer” for the related holding. This action will send them an email to our Payment Portal site, enabling them to make a one-time payment or establish recurring payments to your IRA. We also offer the Midland Pay app in the Apple and Google Play stores. Your tenants or borrowers can download the app and select your investment. They can set up one-time or recurring payments directly to your account.
How Can I Pay My Midland Fees or Update My Preferred Billing Method?
Once logged into Midland 360, click the “Billing” option at the top of your screen. From here, you can make a payment, update your billing method, and view all Fee Statements generated for your account.
How Do I Generate a Custom Statement for My Account?
Once logged into Midland 360, select “Create Statement” to generate an account snapshot for a specified time.
How Do I Add or Update the Beneficiary on My Account?
To update beneficiary information, complete the Change of Beneficiary form. You can send the form to Midland through our Secure Upload feature.
How Do I Grant Access to My Account to Another Individual?
There are two levels of access you can grant on your account:
Interested Party Designation: This designation allows an appointed individual to call for general information on your account, view your account online, and receive emails related to your account if given permission. To grant this level of access, please complete our Interested Party Designation form. You can send the form to Midland through our Secure Upload feature.
LPOA: Allows an appointed individual the power to conduct all transactions in your account, except those listed on the form. To grant this level of access, please complete our Limited Power of Attorney form. Mail the original, notarized form to our office to update your account.
Making an Investment
Who Are Disqualified Parties?
Disqualified Parties are certain people and/or entities with which your IRA cannot do business. IRC Section 4975 outlines these parties. For a list of Disqualified Parties, please view our Prohibited Transactions Guide.
What is a Prohibited Transaction?
Some types of self-directed transactions violate your IRA's basic intent. These transactions may subject your account to risks and penalties. Your retirement plan is not to benefit you before you reach retirement age. Actions providing immediate financial gain to the account holder or other disqualified persons/parties are not allowed. Examples include:
Borrowing money from your IRA
Selling, exchanging, or leasing personally owned property to your IRA
Using your IRA as security for a loan
Transferring plan income or assets to disqualified persons
Lending IRA money to disqualified persons
Extending credit on your IRA to disqualified persons
Furnishing goods, services, or facilities to disqualified persons
Allowing fiduciaries to obtain or use the plan’s income or assets for their interest
Self-directed IRAs can invest in alternative investments such as real estate, futures, forex, private lending, crowdfunding, precious metals, private equity, hedge funds, and more. A self-directed IRA cannot invest in life insurance products or collectibles. These assets include works of art, rugs, or antiques.
Does Midland Advise?
Midland does not advise clients. Midland has no responsibility or involvement in selecting or evaluating any investment. Nothing contained on our website shall be construed as investment, legal, tax, or financial advice or as a guarantee, endorsement, or certification of any investments. You will need to contact a CPA of Financial Adviser for any advice related to your IRA.
Who Completes Due Diligence on an Investment?
The client is solely responsible for completing the due diligence on any intended investment for their account. Midland IRA is not a fiduciary. Midland’s role as the administrator of self-directed retirement accounts is non-discretionary and/or administrative in nature. The account holder or his/her authorized representative must direct all investment transactions and choose the account’s investment(s). Midland has no responsibility or involvement in selecting or evaluating any investment. Nothing contained on our website shall be construed as investment, legal, tax, or financial advice or as a guarantee, endorsement, or certification of any investments.
How Do I Let Midland Know When I Am Ready to Move Forward With an Investment?
Make an investment by logging onto Midland 360 and using the online buy feature. This feature allows you to input all relevant information for your specific investment and upload all documents required by Midland to administer the asset.
How Do I Liquidate an Investment?
For Futures and Forex accounts, please submit a Trading Account Withdrawal request through Midland 360.
For all other investments, complete the Sale Authorization form to sell a portion or entire asset in your account. Once complete, you can upload through our Secure Upload feature, at which time a member of our service team will reach out with our Delivery Instructions for the sale proceeds along with any additional steps.
Does Midland Have Options for My Uninvested Cash Balance?
Midland does not offer any investments directly. To discuss your options for uninvested cash, please contact our office at 866-839-0429.
What is the Typical Timeline for Completing an Investment?
The timeline for an investment can vary depending on several factors:
Method of funding the account
Third Parties involved
Please contact a member of our client services team at 239-333-1032 to discuss the estimated timeline details of your investment.
What Fees Does Midland Charge to Make an Investment?
Fees are charged on an annual basis based on the number of assets in your account or based on the total account value in addition to one-time fees related to processing an investment. Please view the Midland Fee Schedule for more details.
Call Us Nationwide (239) 333-1032
Serving Clients Nationwide
1520 Royal Palm Sq. Blvd #300
Fort Myers, FL 33919
MIDLAND TRUST COMPANY, NOR ITS AFFILIATES OR SUBSIDIARIES (COLLECTIVELY REFERRED TO AS "MIDLAND"), IS NOT A FIDUCIARY: Midland’s role as the Custodian and/or Administrator of self-directed retirement accounts is non-discretionary and/or administrative in nature. The account holder or his/her authorized representative must direct all investment transactions and choose the investment(s) for the account, and is responsible for conducting his/her own due diligence. Midland has no responsibility or involvement in selecting or evaluating any investment and does not conduct any due diligence on any investment. Nothing contained herein shall be construed as investment, legal, tax, or financial advice or as a guarantee, endorsement, or certification of any investments.