A Wisconsin Self Directed IRA LLC with “Checkbook Control” offers you the ability to use your retirement funds to make almost any type of investment, including real estate, on your own without custodian consent. If you want to make an alternative asset investment in the state of Wisconsin, such as real estate or precious metals, the Wisconsin Self Directed IRA LLC is your solution. Along with the tremendous IRA benefits (tax-free gains, tax deductions, asset protection and estate planning), the Wisconsin 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 Wisconsin Self Directed IRA LLC with “checkbook control”, you will gain the following advantages:
1. “Checkbook Control”
You will no longer have to get each investment approved by the custodian of your account. Instead, as manager of the Wisconsin Self Directed IRA LLC, all decisions are truly yours. To make an investment, simply write a check and use the funds straight from your Wisconsin Self Directed IRA LLC bank account.
Let’s assume that you establish a Self-Directed IRA LLC. Your traditional IRA, care of the custodian, is the sole member of the LLC and you will act as manager of the LLC. You decide to open your Self-Directed IRA LLC bank account at a local bank in Wisconsin. The name of your Self-Directed IRA LLC is ABC LLC. You want to use your IRA funds to purchase a home from Jack, an unrelated third-party, therefore a non-disqualified person.
With a checkbook control Wisconsin Self-Directed IRA LLC, as manager, you simply need to write a check using the funds, or wire the funds from your ABC LLC bank account to Jack, which is advantageous, because Jack wants to close the transaction soon. As you can see, with the Self-Directed IRA LLC with checkbook control, you no longer need custodian consent to make a purchase, which would likely take too long.
2. Investment Opportunities
With a Wisconsin Self-Directed IRA LLC, you will be able to invest in almost any type of investment opportunity that you discover, including Real Estate in or outside the State of Wisconsin (rentals, foreclosures, raw land, tax liens etc.), private businesses, as well as stock and mutual funds. As long as you don’t make a prohibited investment, which are very few, you make almost any type of investment possible. All income and gains from these investments will flow back into your IRA tax-free.
3. Low Custodian Fees
A Wisconsin Self-Directed IRA LLC “Checkbook Control” structure will help you save a significant amount of money on custodian fees. Because you no longer need custodian consent with the Self-Directed IRA LLC, you don’t need to pay excessive custodian fees based on account value and transaction fees as with the custodian controlled Self Directed IRA. Instead, a “checkbook control” operates with a FDIC backed IRS approved passive custodian, such as IRA Financial Trust.
The “checkbook control” Self Directed IRA LLC custodian 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. When you use 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 we work with are FDIC backed and IRS approved. As soon as your custodian transfers your retirement funds to the Passive Custodian, the Passive Custodian will immediately transfer your funds to your new Wisconsin Self-Directed IRA LLC bank account where you as manager of the LLC will have “Checkbook Control” over those funds.
4. Investments Made Quickly
With a Wisconsin Self-Directed IRA LLC “Checkbook Control” structure, you are manager of the IRA LLC, so you have power to act fast on a potential investment opportunity. When you find an investment that you want to make with your IRA funds, you can write a check or wire the funds straight from your Wisconsin Self Directed IRA LLC bank account. The investment is yours. The Self Directed IRA eliminates delays associated with an IRA custodian, so you can move quickly on timely investments.
5. Tax-Free Income & Gains
With a Wisconsin Self-Directed IRA LLC “Checkbook Control” structure, all income and gains from IRA investments will generally flow back to your IRA LLC tax-free. Because 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, all income and gains of the LLC will flow-through to the IRA tax-free!
6. Limited Liability Protection
The State of Wisconsin has enacted a statute that provides for the creation and governance of LLCs. In addition, the State of Wisconsin allows an IRA to be a member/owner of an LLC.
With a Wisconsin Self-Directed IRA LLC, your assets held outside of the LLC will be protected from attack. This is especially important in the case of IRA real estate investments where many state statutes, including Wisconsin impose an extended statute of limitation for claims arising from defects in the design or construction of improvements to real estate.
7. Asset & Creditor Protection
By using a Wisconsin 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 Wisconsin shields Traditional and Roth IRAs from creditors attack against the IRA holder outside of bankruptcy . Therefore, by using a Wisconsin Self-Directed IRA LLC, a Traditional IRA and Roth IRA will be generally protected against creditor attack against the IRA holder.
