A Washington Self-Directed IRA LLC with “Checkbook Control” gives you the ability to use retirement funds to make almost any type of investment. This includes real estate, precious metals and other alternative/non-traditional assets. If you have an investment opportunity in Washington that you want to buy with your retirement funds, the Washington Self Directed IRA LLC is your solution. Along with the many IRA benefits (tax-free gains, tax deductions, asset protection and estate planning), the Washington Self Directed IRA LLC allows you to invest tax-free in investments that you know and understand quickly and without custodian consent.
By using a Washington Self Directed IRA LLC with “checkbook control”, you will gain the following advantages:
You no longer need approval by your account custodian to make an investment. Instead, you will be the manager of the Washington Self-Directed IRA LLC, giving you the power to make investment decisions on your own of your account. When you see an investment you want to make, simply write a check and use the funds straight from your Washington Self Directed IRA LLC bank account.
For example, if you establish a Self-Directed IRA LLC, your Traditional IRA, care of the custodian, is the sole member of the LLC and you will be the manager of the LLC. You can open the Self-Directed IRA LLC bank account at a local bank in Washington. Let’s assume the name of your Self-Directed IRA LLC is ABC LLC and you want to use your IRA funds to purchase a home from Mitt, an unrelated third-party (non-disqualified person). Mitt is anxious to close the transaction as soon as possible. With a “checkbook control” Washington Self-Directed IRA LLC, you can write a check using the funds from the ABC LLC bank account or wire the funds directly from the account to Mitt. You don’t have to wait for custodian consent, which can be a lengthy process, causing you to lose the investment.
With a Washington Self-Directed IRA LLC, you have more investment options than stocks, bonds and other traditional assets. The Self-Directed IRA LLC allows you to diversify your retirement portfolio by investing in Real Estate in the state of Washington (rentals, foreclosures, raw land, tax liens etc.), Private Businesses, Precious Metals, Hard Money & Peer to Peer Lending as well as traditional investments. Your only limit is your imagination. 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 A Washington Self-Directed IRA LLC “Checkbook Control” structure. The Self-Directed IRA LLC with “checkbook control” does not require custodial approval, therefore you do not have to pay excessive custodian fees based on account value and transaction fees. Instead, with a “checkbook control” Self-Directed IRA LLC, an FDIC backed IRS approved passive custodian is used.
The custodian in the “checkbook control” Self Directed IRA LLC structure is referred to as a “passive” custodian largely because the custodian is not required to approve any IRA related investment. The custodian simply serves the role of satisfying IRS regulations. By using a Self Directed IRA LLC with “checkbook control” you can take advantage of all the benefits of self-directing your retirement assets without incurring excessive custodian fees and custodian created delays.
The Passive Custodians that we work with 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 Washington Self Directed IRA LLC bank account. As manager of the LLC, you gain “Checkbook Control” over your funds.
Investments Made Quickly
As manager of the Washington Self-Directed IRA LLC “Checkbook Control” structure, you, as manager of the IRA LLC, will have the power to act quickly on a potential investment opportunity. When you find an investment that you want to make with your IRA funds, simply write a check or wire the funds straight from your Washington Self-Directed IRA LLC bank account to make the investment. The Self-Directed IRA allows you to eliminate the delays associated with an IRA custodian, enabling you to act quickly when the right investment opportunity presents itself.
Tax-Free Income & Gains
With a Washington Self-Directed IRA LLC “Checkbook Control” structure, all income and gains from IRA investments will generally flow back to your IRA LLC tax-free. An 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. As a result, all income and gains of the LLC will flow-through to the IRA tax-free.
Limited Liability Protection
Washington State enacted a statute that provides for the creation and governance of LLCs. In addition, the State of Washington allows an IRA to be a member/owner of an LLC.
When you use a Washington Self-Directed IRA LLC with “Checkbook Control”, your IRA will benefit from the limited liability protection afforded by using a Washington LLC. With the Washington LLC, all of your IRA assets held outside of the LLC are protected from attack. This is important for real estate investment because many state statutes, including Washington, impose an extended statute of limitation for claims arising from defects in the design or construction of improvements to real estate.
Asset & Creditor Protection
By using a Washington 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 Washington shields Traditional and Roth IRAs from creditors attack against the IRA holder outside of bankruptcy . As a result, by using a Washington Self-Directed IRA LLC, a Traditional IRA and Roth IRA will most likely be protected against creditor attack against the IRA holder.