Provident Trust Group IRA Review

Provident Trust Group IRA Review
Provident Trust Group IRA Review - by, April 1, 2011
3.5/ 5stars
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Provident Trust Group IRA Review
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Review Summary :

Provident Trust Group has been providing IRA accounts to customers for 10-plus years. The company offers support for 401(k) plans which is something very few self-directed companies provide. Take a look at the periodic table of investments located in our review to see the different investing options you have with Provident Trust Group.

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Pros:

  • Individual 401(k) available
  • Great periodic table of investments

Cons:

  • Annual fees start high
  • Large number of negative reviews
Quick Facts about Provident Trust Group IRA
Year Founded:2007
Location:Las Vegas, Nevada
Annual Fees:$195-$595
Offers 401(k)?:Yes
Offers Roth IRA?:Yes
Crypto Offered?:No
Reviewed By:Jack Choros
Published On:April 14, 2020
Last Modified:June 2, 2020
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Provident Trust Group is proudly serving customers in 50 states and has been doing so for more than a decade.

While the company has been around long enough to establish a solid reputation and it does have a wide customer base, Provident Trust Group needs to work on things in several areas.

For one, the fee structure is actually quite complicated. It’s hard for customers to know what they’re going to pay out of their account for specific transactions or account setups, because as much as Provident Trust Group has set establishment and annual fees, the transaction fees vary depending on the type of asset and the number of assets being invested in.

Investors will naturally face that with any IRA provider but the way Provident Trust Group does things is just a bit too cumbersome for our liking.

While this review will cover a lot of the benefits and advantages of choosing Provident Trust Group, we urge you to look at competitors before deciding on which IRA provider is right for you.

The Management Team and Board of Directors of Provident Trust Group

Provident Trust Group manages 34,000 clients across 50 states. It’s impressive for a company that’s only been around for 10 years. That said, the company website doesn’t actually list any information about the management team directly. We did however find a few of the company leaders on LinkedIn.

Jeff Irman is the Head of Trust Compliance. He’s been with the company for less than two years. Prior to arriving at Provident Trust Group, Irman served as the Director of Compliance at Charles Schwab Trust Company.

Segei Vasilyev is the VP of Technology. He’s been with the firm for more than six years. Visilyev is a graduate of the University of Nevada.

Jim Heiden is the Head of Sales & Marketing. Heiden’s held that role for nearly four years and held similar roles at two different companies prior to joining Provident Trust Group.

That’s all we really have for the executive team but as you’ll see the customer reviews and offerings are what matter the most to you as an investor.

Investing Account Options at Provident Trust Group

At the end of the day the different account types offered at self-directed IRA companies are all placeholders for investments. The account types however still impact retirement because they may or may not have different tax implications for personal investors or businesses.

Provident Trust Group offers both Traditional and Roth IRAs as well as SEPs, SIMPLE IRAs, Inherited IRAs and individual 401(k) plans.

The Traditional IRA allows investors to get tax write offs during contributing years and pay taxes upon retirement and withdrawals. A Roth doesn’t allow tax breaks during contributing years but also doesn’t include income tax upon retirement.

SEPs and SIMPLE IRAs are for businesses looking to contribute to the retirement plans of their employees. The business can include a self-employed person but also includes companies of less than 100 people. This makes their contributions a business expense and allows the employee to benefit as well.

Bigger corporations of 101 or more people can register 401(k) plans. 401(k) plans come with extensive options where corporations can match their employees contributions up to a certain percentage. The reason most businesses and individuals won’t use this kind of plan is because it involves significant administrative costs.

Investment Options at Provident Trust Group

Very few self-directed IRA companies that we are reviewing actually provide a visual roadmap or representation of the kinds of investing options they want to offer to investors. Generally speaking, it seems we’ve only found two companies that do this and it just so happens that Provident Trust Group is one of them.

While the other IRA company offers what looks to be a subway map, Provident Trust Group shows off its investing options using a periodic table of investments if you will.

Provident Trust Group breaks down investing options into three categories color-coded by four different colors. They essentially outline prohibited, traditional and alternative investments.

It’s really nice to get a visual but at the end of the day they promote the same things that most other IRA providers will offer. Provident Trust Group is not allowed to sell investors on the idea of investing in insurance policies or collectibles as per the IRS.

Besides that investors can choose from a slew of options including traditional stocks, bonds, mutual funds and hedge funds, other types of securities etc.

Alternative assets include tax liens, limited partnerships, deeds, life settlements, land, real estate, precious metals, private equity, certificates of deposit, real estate investing trusts, private stock, gas and oil, and more…

One of the hallmarks of a top-notch self-directed IRA company is the fact that they have to build adjust to what investors want. After all, the whole point of being self-directed is exercising the ability to maintain control over the future of your money. Provident Trust Group understands that as do many other IRA companies.

The Fee Schedule at Provident Trust Group

Provident Trust Group’s fee schedule comes in a beautiful color PDF format. They charge the following fee types:

  • One-time fees
  • Annual fees
  • Mailing & processing fees
  • 401(k) fees
  • transaction fees
  • miscellaneous fees

Provident Trust Group’s fees a start at $195 per year. The structure of the rest of the fees though is pretty complex, which is to say that they vary a lot. This is not actually common practice among other IRA providers. An inherited IRA comes with a $395 annual fee. I’ll savings account costs $135 a year plus an establishment fee.

Your own personal fees really depend on your own personal needs. That said adding up the annual fees with the one-time administrative charges yields fees of anywhere from $195 all the way to $500. It’s not totally unreasonable but the pin exactly what your fees would be is difficult to say.

The company also does charge you a $95 fee for your first asset purchase and $25 for each additional asset after that. Where other IRA providers make things more straightforward, Provident Trust Group charges you based on every individual needs you might have, so be prepared to see money leaving your account.

This is definitely one of the things we don’t like about Provident Trust Group. It’s just too much to digest all at one time.

Here’s a chart of the basic fees:

Account FeesOne-Time Establishment FeesAnnual Custodial Fees
Traditional and Roth IRA$50$395
SEP and SIMPLE IRA$150$445
Individual 401(k) plan$150$495
Health Savings Account$150$135
Coverdell Education Savings Account$50$395
Inherited IRA$50$395
Custodial Accounts$50$395

Customer Support at Provident Trust Group

Provident Trust Group can be reached by phone at (702)434-0023 or through a toll free number, 1-888-9865. They can also be reached by email at info@trustprovident.com. The company’s offices are open from 6 AM to 4 PM Pacific Standard Time Monday to Friday. They do not offer live support and as you’re about to see, the customer reviews aren’t the greatest.

Provident Trust Group Company Customer Reviews

Provident Trust Group has 37 reviews on its Google business profile and those reviews only add up to a 2.7 out of five star rating. That’s by far one of the lowest ratings of all of the IRA providers we are reviewing here at Sophisticated Investor. That’s not a good sign but it doesn’t mean they won’t give you the basics of your requests. Our guess is this negative customer feedback probably has a lot to do with fees because the fees represent quite a matrix of different kinds of transactions that the average customer probably doesn’t want to think about every time they make a move.

This IRA’s reviews look even worse on Yelp. Provident Trust Group only ranks a 2.5 out of five stars there. Clearly the company has some work to do when it comes to making their customers happy.

We would like to be able to say that the company’s Better Business Bureau profile is it saving grace, but that’s not true either. Though BBB lists an A+ rating for Provident Trust Group, five customer reviews give the company a one out of five star rating, by far the worst rating we have seen in all of our reviews.

Anybody willing to take a chance on Provident Trust Group, better take a look at some of the other IRA providers out there.

Frequently Asked Questions: Provident Trust Group Company

Here’s a list of frequently asked questions about Provident Trust Group Company.

Yes, it is possible to set up an LLC. The advantage is an LLC allows investors to draw checks on their account and generally facilitate more transactions with fewer consequences. Most self-directed IRA companies offer this but you should know the IRS frowns upon it.

Cashing the check from Provident Trust Group is just like catching a check from anywhere else. You can take it and go to a major bank, a credit union, or a cash advance company. If you use a cash advance company, they will charge you commission fees. Keep in mind that Provident Trust Group also charges for issuing a check, so it is going to cost you.

The IRS does not allow individual investors to use their retirement funds for business. Anything that resembles business transactions or constant deposits or withdrawals for tax avoidance purposes is illegal. That’s why buying things like life insurance policies or arts and other collectibles are not allowed inside of an IRA. You also can’t set up an S-Corporation.

Should You Choose Provident Trust Group for your Self-Directed IRA?

This is one of the few IRA reviews here at Sophisticated Investor where we have to actually answer no. We would not rate Provident Trust Group as a company that the average investor should spend their time working with. We can research the features, advantages and benefits of working with Provident Trust Group, but ultimately our view comes down to what customers think.

It’s loud and clear that customers think working with Provident Trust Group is by and large a negative experience. Yes, they offer many different account types and investing options, but so do their IRA competitors.

While we would never say that a properly registered business with 10 years in existence shouldn’t have the opportunity to earn new business and prove themselves again, we strongly recommend taking a look at IRA providers with stronger customer feedback before choosing Provident Trust Group as your number one option. To read our comparison of the best options on the market, check out our list of the Best IRA Providers.

 

Provident Trust Group IRA Review
Provident Trust Group IRA Review - by, April 1, 2011
3.5/ 5stars
on
Provident Trust Group IRA Review
  • Editor Rating
  • Good
  • 0/5 Avg. User Rating
  • 0 No reviews yet!
Review Summary :

Provident Trust Group has been providing IRA accounts to customers for 10-plus years. The company offers support for 401(k) plans which is something very few self-directed companies provide. Take a look at the periodic table of investments located in our review to see the different investing options you have with Provident Trust Group.

Have you purchased products from Provident Trust Group IRA Review? Leave a review!

Leave your rating

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