A Self-Directed IRA LLC with “Checkbook Control” plan is an IRS and tax court approved structure. So it allows you to use your IRA funds to make almost any investment. This includes real estate, tax liens, precious metals and much more – tax free!
With a “checkbook control” Self Directed IRA LLC, you don’t need custodian consent for investments. Also, you no longer have to deal with hefty custodian fees.
Let’s discover how one establishes a Self-Directed IRA LLC “Checkbook Control” structure.
First, you should establish a Checkbook IRA LLC for the following reasons:
- Investing in alternative assets, such as real estate investing, precious metal, private business and tax liens.
- You want to manage and gain full control over your IRA investments – this means more responsibility
- Establish a Checkbook IRA to remove custodian control and reduce high IRA custodian fees
- Make faster investments with your Checkbook IRA
So, if you fall into any of the above categories, it’s time to start your checkbook self-directed IRA.
First, understand that the IRA owns and operates an LLC, which is also known as a limited liability company. However, the LLC is managed by the account owner – you. Your funds will then transfer over to a new IRA LLC bank account by a passive custodian. As a result, when you find a good investment, seize the opportunity. Write a check or wire the funds straight from your Self Directed IRA LLC bank account to make the investment. It’s as simple as that!
As you can see, speed is a benefit with checkbook control. The Self Directed IRA LLC with “checkbook control” eliminates delays the delays with an IRA custodian.
A Self-Directed IRA LLC with “Checkbook Control” Offers Investment Alternatives
With a Self-Directed IRA LLC with “checkbook control,” you can invest in almost any type of investment. This includes:
- real estate
- private business entities
- tax liens
- foreign currency
- commercial paper
Also, you can make these investments tax-free! To clarify, this greatly contrasts a traditional IRA custodian, such as Vanguard or Fidelity. Traditional IRA custodians only allow IRA investments into stock or mutual funds. However, a Self-Directed IRA LLC with “checkbook control” allows you to make non-traditional investments with your IRA funds. Again, this includes commodoties such as precious metal or real estate.
These investment opportunities are practically unlimited. And it allows you to diversify your retirement portfolio.
Below is a partial list of allowable investments:
- Residential or commercial real estate
- Raw land
- Foreclosure property
- Mortgage pools
- Private loans
- Tax liens
- Private businesses
- Limited Liability Companies
- Limited Liability Partnerships
- Private placements
- stocks, bonds, mutual funds
- Most currencies
Gaining “Checkbook Control” is Quick & Easy
At IRA Financial Group, our team will take care of the entire structure. The process can be complete via phone, fax, email, or mail. This process typically takes between 7-21 days to complete. This depends on the state the business is in, along with the custodian holding your retirement funds. We have a team of in-house tax and ERISA professionals ready to reduce your set-up time and cost. Most importantly, each client of the IRA Financial Group is assigned a retirement tax professional. This helps with establishing the Self-Directed IRA LLC “Checkbook Control structure.
The Self-Directed IRA LLC “Checkbook Control” Process
The process is done in six easy steps process, which we have broken down for your benefit.
So the first step is when a Self-Directed IRA account is established. This occurs with an IRS approved and FDIC backed passive custodian.
Next, the retirement funds get transferred. These go to the new Self-Directed IRA account – tax-free!
Then, in the third step, a Limited Liability Company (LLC) is formed. This is through the IRA account owner/Manager and the IRA as owner (member) of the LLC.
At the direction of the IRA owner, the passive custodian invests the IRA funds into the newly formed IRA LLC. You can use one or more of the IRAs to fund the IRA. This includes Traditional, Roth, and SEP IRAs.
The Manager of the new IRA LLC (the IRA owner) directs all, or a portion, of the IRA funds held in the new LLC bank account for investment.
Sixth (and final) Step
The LLC makes an investment using IRA funds and all income and gains generally flow back to the LLC tax-free!
Did you know?
A “Checkbook Control” Self-Directed IRA LLC will let you make investments much quicker than with a custodian controlled IRA.