How does First Trust Retirement keep our Custodian Fees Low?

FTR keeps its costs low by utilizing the product sponsor's existing DST Systems, Inc. transfer agency structure. This allows us to embed our services into the media, mailings and reporting that is already in place for the product sponsors that partner with us. This keeps the fees low, and the services efficient.

	First Trust Retirement	Other IRA Custodians
Annual Fee*	Preferred Private/Publicly Traded Product Sponsors — $35 Non-Preferred Public Traded Product Sponsors — $45	$95
Setup Fee	$0	$50+
Transaction Fee	$0	$40
Statement Fee	$0	$10
Purchases, Sales, Corporate Actions**	$20	$35
Cash Disbursements by Check	$0	$5+
Re-Registration Charges Per Investment	$0	$75
Closing Fees	$0	$150

*Preferred Private/Publicly Traded Product Sponsor fees vary by client.  Please review the First Trust Retirement Financial Disclosure for more information.

**A $20 fee is incurred during share sales on exchange listed products to cover the cost of selling your shares on the market.

Custodian Fees

First Trust Retirement, as Custodian, may charge reasonable fees or compensation for its services and may deduct all reasonable expenses incurred by it in the administration of your IRA account, including any legal, accounting, distribution, transfer, termination or other designated fees.

The fee for existing account holders will be due to be prepaid and/or collected in the first quarter of every year. If a new account that is applicable to our Custodian fee is opened after the first quarter of the year, that account's fee will be collected in the last quarter for that year only. The following year it will be treated as an existing account and will be collected in the first quarter. For details please refer to the FTR Financial Disclosures below.

-Preferred Private/Publicly Traded Product Sponsor $35

-Non-Preferred Publicly Traded Product Sponsor $45

Undirected Cash

The Custodian will have the additional options of holding Undirected Cash (defined as cash in an account that lacks specific accountholder investment instruction) in an account or product of an FDIC or other United States government insured financial institution, United States Government security, or security that is insured or guaranteed by the United States government and to retain a portion of the income attributable to Undirected Cash (if any) as a custodial fee.

Paying Custodian Admin Fee

Starting in 2018, the annual Custodian Admin Fee will be automatically deducted from the Undirected Cash in your account upon due date.  If your Undirected Cash is insufficient to cover the fee, the fee will be automatically deducted from the investment’s income distributions until satisfied. 

 

If you wish to opt out of the automatic Custodian Admin Fee deduction, please complete the First Trust Retirement Annual Custodian Admin Fee Opt In/Opt Out Request Form.  The Opt Out form may be obtained by clicking here

 

Opting out of the automatic Custodian Admin Fee deduction will trigger FTR to mail to your address of record an invoice indicating the due date of the Annual Custodian Admin Fee.  If you fail to pay the amount due by check prior to the due date, the fee will be taken via automatic Custodian Admin Fee deduction.