The Self-Directed Roth IRA LLC
Use your retirement funds to invest in real estate, precious metals, private businesses and much more tax-free!
The Self-Directed Roth IRA Structure has been in use for some 35 years. The Tax Court and the IRS have firmly established that the funding of a new entity by an IRA for self-directing assets was a permitted transaction and not prohibited pursuant to Code Section 4975. In fact, the IRS, in an advisory memorandum to audit agents, confirmed that a newly established entity owned by an IRA and managed by the IRA owner may make investments using IRA funds without violating the prohibited transaction rules under Internal Revenue Code Section 4975.
The Roth IRA
In 1997, Congress, under the Taxpayer Relief Act, introduced the Roth IRA to be like a traditional IRA, but with a few attractive modifications. The big advantage of a Roth IRA is that if you qualify to make contributions, all distributions from the Roth IRA are tax-free – even the investment returns – as long as the distributions meet certain requirements. In addition, unlike traditional IRAs, you may contribute to a Roth IRA for as long as you continue to have earned income (in the case of a traditional IRA, you can’t make contributions after you reach age 70 and 1/2). The rules for the Roth IRA are found in the Internal Revenue Code under Section 408A.
What is a Roth IRA?
A Roth IRA is an IRA that the owner designates as a Roth IRA. A Roth IRA is generally subject to the rules for Traditional IRAs. For example, traditional and Roth IRAs and their owners are identically affected by the rules treating an IRA as distributing its assets if the IRA engages in a prohibited transaction or the owner borrows against it. The reporting requirements for IRAs also apply to Roth IRAs. However, several rules, described below, apply uniquely to Roth IRAs.
The most attractive feature of the Roth IRA is that even though contributions are not deductible, all distributions, including the earnings and appreciation on all Roth contributions, are tax-free if certain conditions are met.
Roth IRA Characteristics
The following is an overview of the tax characteristics of the Roth IRA
- Contributions are not Tax-Deductible: Unlike a Traditional IRA, an individual is not permitted to take an income tax deduction for their Roth IRA contributions. All Roth IRA contributions are made with after-tax dollars. What this means is that the amount of the contribution is treated as basis in the IRA.
- Earnings are Tax-Deferred: Earnings and gains from a Roth IRA are tax-deferred and may be tax-exempt if certain conditions are met. What this means is that all income and gains generated by a Roth IRA investment are not subject to income tax.
- Tax-Free Earnings: The attraction to the Roth IRA is based on the fact that qualified distributions of Roth earnings are tax-free. As long as certain conditions are met and the distribution is a qualified distribution (the Roth IRA has been established for greater than five years and the Roth IRA owner is over the age of 59 and 1/2), the Roth IRA owner will never pay tax on any Roth distributions received.
The Self-Directed Roth IRA LLC structure has become a popular choice for gaining total investment control (“checkbook control”) over IRA funds and making investments tax-free. In each case, a limited liability company (“LLC”) is established that is owned by the IRA account and managed by the IRA account holder. The IRA Holder’s IRA funds are then transferred by the Custodian to the LLC’s bank account providing the IRA holder with “checkbook control” over his or her IRA funds.
The IRA Financial Group was founded by a group of top law firm tax and ERISA professionals who have worked at some of the largest law firms in the United States, including White & Case LLP and Dewey & LeBoeuf LLP. We have helped thousands of clients take back control over their retirement funds while gaining the ability to invest in almost any type of investments.
With IRA Financial Group’s Self-Directed Roth IRA LLC Structure – you now can:
- Use your retirement funds to invest in real estate and much more tax-free!
- Take advantage of great investment opportunities in real estate, tax liens, precious metals, private businesses, and much more!
- Gain control of your retirement funds!
- Pay no tax on distributions
- Purchase a home and move in tax-free at 59 and 1/2
- Diversify your retirement portfolio!
- Access your retirement funds to make the investments you want when you want!
- Help grow your retirement funds tax-free!
- Make investments quickly without delay!
- Make investment decisions without requiring custodian consent!
- Save on high annual custodian fees
- Enjoy tax benefits generated by using a Self-Directed Roth IRA LLC
- Work directly with our retirement tax professionals to establish an IRS compliant structure that works best for you and your investment goals
Our Self-Directed Roth IRA LLC Establishment Service Includes
- Free tax consultation with our IRA Specialists
- Setup your LLC in the State of your choice
- Prepare and file the Articles of Organization with the State
- Generate a special purpose, attorney-reviewed Self-Directed Roth IRA LLC Operating Agreement
- Generate a special purpose, attorney-reviewed Subscription Agreement
- Obtain the EIN from the IRS
- Co-ordinate setup with the Custodian of your Choice
- Free tax and IRA support
- Direct access to our on-site retirement tax professionals
- No annual fees
- Satisfaction Guaranteed!
The IRA Financial Group will take care of the entire setup of your Self-Directed Roth IRA LLC “Checkbook Control” structure. The whole process can be handled by phone, email, fax, or mail and typically takes between 7-21 days to complete, the timing largely depending on the state of formation and the custodian holding your retirement funds. Our IRA retirement tax experts are onsite greatly reducing the setup time and cost. Most importantly, each client of the IRA Financial Group is assigned a retirement tax professional to help with the establishment of the Self-Directed Roth IRA LLC “Checkbook Control structure. You will find that our fee for this service is significantly less than other companies that perform the same or similar services.
Please contact one of our IRA Experts at 800-472-0646 for more information.
Did you know? IRA Financial Group has in-house CPAs specializing in the tax treatment of Self-Directed IRAs.