What is a Real Estate IRA?
A real estate IRA also known as a Self Directed IRA or a checkbook control IRA is a retirement investment structure that allow ones to use their retirement funds to make real estate as well as any IRS approved investment tax-free and without custodian consent.
A real estate IRA is a tax court and IRS approved structure that offers one the ability to take more control over their retirement funds and make real estate and other investments tax-free! A real estate IRA with checkbook control that offers one the ability to purchase real estate and much more on their own without requiring the consent of the custodian.
With a real estate IRA, a limited liability company (“LLC”) is established typically in the state where the real estate investment will be made. For example, if the individual IRA holder will be buying real estate in Texas, a Texas real estate IRA LLC should be formed. The real estate 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 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 investment is made, all income and gains would generally flow back to the Self Directed IRA LLC tax-free.
With a real estate IRA, you will be able to take control of your retirement funds plus diversify your retirement portfolio by making real estate and other non-traditional investments tax-free. By using your IRA or 401(k) funds to make a real estate investment, all income and gains generated by the real estate investment would flow back to your IRA tax-free. Whereas, if you made the real estate investment personally, all income and gains generated by the real estate investment would be subject to tax. Hence, using a real estate IRA will allow you to diversify your retirement portfolio while allowing you to invest in real estate tax-free. Using a real estate IRA is easy to work with and can be set-up in a matter of days. As manager of the IRA LLC, you will simply have to write a check or wire funds straight from the real estate IRA LLC account to make the real estate investment. No custodian consent is required and all income and gains will generally flow back to your self directed IRA LLC tax-free. Plus, with a real estate IRA LLC, you will be able to make real estate as well as other non-traditional investments, such a precious metals, tax liens, private businesses, and much more tax-free!
Work directly with our in-house retirement tax professionals to set-up an IRS compliant Self-Directed IRA LLC with “checkbook control”. 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. Each client has direct access to our in-house retirement tax professionals to ensure that the real estate IRA LLC structure is customized to satisfy the client’s retirement and investment objectives.
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 real estate IRA LLC structure established in days!