A Utah Self Directed IRA LLC with “Checkbook Control” allows you to use your retirement funds to make almost any type of investment. You can make an investment without requiring the consent of your account custodian. With more investment options, such as precious metals and tax liens, and control of your IRA, if there is a Utah investment you wish to make, you can do so on the spot. The Utah Self-Directed IRA LLC with “checkbook control” provides you with the following advantages:
With the Utah Self-Directed IRA LLC, you gain checkbook control over your retirement account. You become manager of the plan’s LLC, and simply have to write a check or wire funds from the Utah Self-Directed IRA LLC bank account to make an investment.
Let’s assume you have established a Self-Directed IRA LLC. Your Traditional IRA, care of the custodian, is the sole member while you are the manager of the LLC. You can open up the retirement plan’s bank account at any bank in Utah. The name of your Self-Directed IRA LLC is ABC LLC. You see real estate property that you wish to buy from Tom, a non-disqualified person. Tom wants to close the transaction as quickly as possible. With a checkbook control Utah Self-Directed IRA, you don’t have to wait for custodian approval, which would likely take too much time. In the case of a custodian controlled Self-Directed IRA, you would need approval.
A Utah Self-Directed IRA LLC allows you to invest in almost any type of investment opportunity that you discover, including:
- Real Estate in or outside the State of Utah (rentals, foreclosures, raw land, tax liens etc.)
- Private Businesses
- Precious Metals
- Hard Money & Peer to Peer Lending
- Traditional assets, like stock, mutual funds, etc.
The income and gains from these investments will flow back into your IRA tax-free.
Low Custodian Fees
You will save significantly on custodian fees with the Utah Self-Directed IRA LLC checkbook control structure. In the case of a custodian controlled Self-Directed IRA, you would have to pay high custodian fees based on account value and transaction fees. With a checkbook control Self-Directed IRA, a passive custodian is used. The custodian is referred to as “passive” primarily because it serves the role of satisfying IRS regulations. The passive custodian does not approve investments or provide investment advice.
IRA Financial Group works with passive custodians that are FDIC backed and IRS approved. Once your custodian has transferred your retirement funds to the Passive Custodian, the Passive Custodian will immediately transfer your funds to your new Utah Self Directed IRA LLC bank account where you as manager of the LLC will have “Checkbook Control” over those funds.
Investments Made Quickly
With a Utah Self-Directed IRA LLC “Checkbook Control” structure, you will be manager of the IRA LLC, and will have the power to act quickly on a potential investment opportunity. All you need to do is write a check or wire the funds straight from your Utah Self Directed IRA LLC bank account to make the investment.
Tax-Free Income & Gains
With a Utah Self Directed IRA LLC “Checkbook Control” structure, all income and gains from IRA investments will generally flow back to your IRA LLC tax-free. The LLC is treated as a pass-through entity for federal income tax purposes and the IRA, as the member of the LLC, is a tax-exempt party pursuant to Internal Revenue Code Section 408. Therefore, all income and gains of the LLC will flow-through to the IRA tax-free.
Limited Liability Protection
The state of Utah affords limited liability protection to LLCs. With a Utah LLC, your assets held outside of the LLC will be shielded from attack. This is particularly important regarding real estate investments made with your IRA. Many state statutes, including Utah, impose an extended statute of limitation for claims arising from defects in the design or construction of improvements to real estate property.
Asset & Creditor Protection
By using a Utah Self-Directed IRA LLC with “Checkbook Control”, the IRA holder’s IRA will be protected for up to $1 million in the case of personal bankruptcy. In addition, the State of Utah shields Traditional and Roth IRAs from creditors attack against the IRA holder outside of bankruptcy . Therefore, by using a Utah Self-Directed IRA LLC, a Traditional IRA and Roth IRA will be generally protected against creditor attack against the IRA holder.