What is a Checkbook Control IRA?
If you are tired of being forced to invest all your hard earned retirement funds in the stock market or want greater control over your retirement funds, then a Self Directed IRA with Checkbook Control may be your answer. With a Self Directed IRA with Checkbook Control also known as a Checkbook Control IRA, you will be able to better diversify and control your retirement funds by gaining the ability to make traditional investments (i.e. stocks) as well as non-traditional investments (i.e. real estate) tax-free and without custodian consent.
As you are probably aware, the majority of financial institutions do not permit one to invest their retirement funds in non-traditional investments, such as real estate, even though the IRS permits it. The reason for this is purely economical; a bank does not make money when you use your retirement funds to buy real estate.
In order to have the opportunity to buy real estate with your retirement funds, an IRA with checkbook control is generally the investment vehicle of choice. With a Checkbook Control IRA, a limited liability company (“LLC”) is established typically in the state where the investment will be made. The IRA, care of the IRA custodian, will own the LLC and the IRA holder (you) or any third-party can serve as the manager of the LLC. Once the retirement funds have been transferred to a new IRA custodian, which allows for real estate investments, the IRA custodian will then transfer the IRA funds directly to the new IRA LLC bank account tax-free. The new IRA LLC bank account can be opened at any local bank or credit union. As manager of the checkbook control IRA LLC, you will have checkbook control over the IRA funds allowing you to make a real estate investment by simply writing a check directly from your IRA LLC bank account. Once the real estate or other investment is made, all income and gains would generally flow back to the Checkbook Control IRA tax-free. Likewise, all investment expenses associated with the Checkbook Control IRA investment must be paid using IRA funds.
Using a Checkbook Control IRA to buy real estate or make other investments has a number of advantages, including tax-deferral, diversification, and protection against a falling U.S. dollar.
Work directly with our in-house retirement tax professionals to set-up an IRS compliant Checkbook Control IRA. Our retirement tax professionals have worked at some of the largest law firms in the United States, including White & Case LLP and Dewey & LeBoeuf LLP.
Call us at 800-472-0646 and learn more about the benefits and tax advantages of establishing a real estate IRA. Take control of your retirement funds now! It’s quick & easy and we can have your “Checkbook Control” IRA structure established in days!