Put simply, the custodian keeps ownership of your assets on behalf of your IRA and is responsible for reporting by the IRS, while the administrator simply carries out your investments according to your instructions. An administrator is an intermediary between the IRA owner and a partner custodian bank that holds the IRA assets. An administrator does the job that a custodian bank would do if it were allowed to hold private investments. These custodians are usually trust companies that are not banks and are licensed by specific countries.
The IRA custodian is responsible for buying and selling investments on behalf of the IRA investor and ensuring that the IRA complies with IRS rules. The custodian bank oversees the IRA account and must perform various functions, such as buying and selling investments, sending out account statements, and ensuring that the IRA meets existing regulatory requirements. If you choose an insurance company as your IRA custodian, you can invest your IRA savings in premium annuities. An IRA custodian is a financial institution that is authorized by the IRS to provide custodial services and store assets on behalf of IRA owners.
Regardless of the type of IRA you have, however, the IRS requires that you have an IRA custodian that manages your IRA investments and provides custodial services for your IRA assets. If you want to invest your IRA money in FDIC-insured securities or money market funds, you can use a bank as an IRA custodian. These fraudsters claim to review and approve the underlying investments, but as the SEC notes, IRA custodians do not assess the quality of investments in the self-directed IRA. An IRA custodian is the financial institution that manages your IRA funds and ensures that your IRA investments are approved by the IRS.