- Financial institutions that serve in role of Custodians must meet certain requirements and perform certain duties for the retirement accounts, including the following:
- Nonbank Custodians must prove their ability to serve as Custodians. This includes proving that they meet certain capital and financial requirements, have the required personnel expertise, have the necessary systems to perform Custodial duties such as tax and other reporting and accounting, be able to process distributions; to maintain records of contributions, withdrawals/distributions and earnings.
- Generally, Upper case C-Custodians usually get paid to serve in that capacity. This is in addition to whatever they would get paid for serving as lower case c-custodians, which would usually be trading-related fees, fees for holding special products such as private placements, and fees for holding precious metals.