What Are Oil, Gas & Mineral Rights in a Self-Directed IRA?

A self-directed IRA may hold certain oil, gas, and mineral rights, including royalty interests and other qualifying energy-related assets. Income attributable to IRA-owned interests must be returned directly to the IRA. Certain ownership structures and activities may result in unrelated business income tax (UBIT).

Understanding Oil, Gas & Mineral Rights in a Self-Directed IRA

Mineral Rights: Ownership interests in minerals beneath a property's surface, subject to applicable agreements and restrictions.
Royalty Interests: Rights to receive payments associated with mineral production, as provided under the applicable agreement.
Working Interests: Interests that may involve responsibility for exploration, development, or operating expenses.
Tax Considerations: Certain activities and ownership structures may generate unrelated business taxable income (UBTI), potentially resulting in UBIT. Consult a qualified tax professional.

How Oil, Gas & Mineral Rights Are Purchased With Your Self-Directed IRA

Mountain West IRA provides administrative and recordkeeping services and does not select, recommend, research, evaluate, or perform due diligence on assets.
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Select Your Asset: Research the proposed oil, gas, or mineral rights interest, including its ownership structure, applicable agreements, expenses, prohibited transaction restrictions, and potential risks.
Complete & Submit Purchase Instructions: Complete and sign the applicable Mountain West IRA Purchase Kit (Direction of Investment). Review supporting transaction documents and mark applicable documents "Read and Approved" with your signature and date before submitting them to Mountain West IRA. Do not sign where the IRA purchaser's signature is required, as an authorized Mountain West IRA signer executes applicable documents on behalf of the IRA.
‍Transactions Department
Phone: 208-510-0859
Email: transactions@mwira.com‍
Administrative Review: Mountain West IRA reviews the submitted documentation for administrative requirements and coordinates any necessary corrections or additional information. Once requirements are satisfied, an authorized signer executes applicable documents on behalf of the IRA.
Fund the Purchase: Submit all required, complete, and correct documentation at least three business days before the requested funding date. Once administrative requirements are satisfied and sufficient IRA funds are available, Mountain West IRA processes the authorized transaction at the account owner's direction.
Maintain Your Asset: Income and other proceeds attributable to IRA-owned interests must be deposited directly into the IRA, and eligible asset-related expenses must be paid from IRA funds. Subsequent purchases and sales must be processed through Mountain West IRA using the applicable transaction documents and supporting information.

Getting Started With Your self-directed IRA

Follow the steps below to establish and fund your self-directed IRA, submit asset purchase instructions, and understand ongoing account requirements.

Complete Your Starter Kit. Select the appropriate account application below. To request electronic signature documents, email accounts@mwira.com or call 208-314-2580.

Traditional IRA Starter Kit

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Roth IRA Starter Kit

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SEP Starter Kit

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Individual 401(k) Plan Starter Kit

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SIMPLE IRA Starter Kit

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Health Savings Account (HSA) Starter Kit

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Traditional IRA Starter Kit

PDF Download

Roth IRA Starter Kit

PDF Download

SEP Starter Kit

PDF Download

SIMPLE IRA Starter Kit

PDF Download

Precious Metals Foreign Currency Starter Kit

PDF Download

Individual 401(k) Plan Starter Kit

PDF Download

Health Savings Account (HSA) Starter Kit

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Fund Your Account. Fund your account through an eligible transfer, rollover, or contribution, depending on the account type and your circumstances.

Submit Your Purchase Instructions. Complete the appropriate transaction forms and provide any required supporting documentation to Mountain West IRA for administrative review.

Maintain Your Asset. Any income or proceeds generated by IRA-owned assets must be deposited into the IRA, and eligible asset-related expenses must be paid from IRA funds. Mountain West IRA provides ongoing administrative and recordkeeping services and processes authorized transactions at the direction of the account owner.

Oil, Gas & Mineral Rights Self-Directed IRA Requirements

Tax Considerations: Certain ownership interests and activities may generate unrelated business taxable income (UBTI), potentially resulting in unrelated business income tax (UBIT).
Ownership & Documentation: Ownership interests must be properly documented and maintained for the benefit of the IRA.
Prohibited Transactions: Account owners and other disqualified persons generally cannot personally benefit from IRA-owned oil, gas, or mineral rights or engage in prohibited transactions involving those assets.
Purchases & Sales: Transactions must be processed through Mountain West IRA using the applicable purchase or sale documents and required supporting information.

Why Choose Mountain West IRA?

Experience Since 2006: Providing self-directed retirement account administration and recordkeeping services since 2006.

Client-Directed Administration: You choose the assets held within your account. We process transactions at your direction and maintain account records.

Alternative Asset Experience: Our team has experience administering accounts that hold a wide range of allowable alternative assets.

Educational Resources: Access guides, videos, webinars, and other resources to better understand self-directed retirement accounts.

Personalized Support: Get responsive assistance with account establishment, administration, and transaction processing.

Frequently Asked Questions

Can My Self-Directed IRA Hold Oil, Gas & Mineral Rights?

Yes. A self-directed IRA may hold certain qualifying oil, gas, and mineral rights, including royalty and working interests, subject to applicable IRS requirements. Income attributable to IRA-owned interests must be returned directly to the IRA.

Can Oil, Gas & Mineral Rights Generate Taxes Within My Self-Directed IRA?

Yes. Certain oil, gas, and mineral rights interests may generate unrelated business taxable income (UBTI), potentially resulting in unrelated business income tax (UBIT). Additional tax reporting requirements may also apply. Consult a qualified tax professional regarding your specific circumstances.