Last Updated on February 7, 2020
The 2018 Self-Directed IRA maximum contribution limits will remain the same as 2017. Are you under 50? The maximum Self-Directed IRA contribution for 2018 is $5,500. This is the same as 2017. Or, are you over 50? the maximum Self-Directed IRA contribution for 2018 will be $6,500, just as 2017.
IRA Financial Group’s Self-Directed IRA LLC
A Self-Directed IRA LLC gives you the ability to make both traditional and non-traditional investments. Traditional in the sense of stocks and mutual funds; non-traditional as in real estate, precious metals, etc. These investments are tax-free and don’t require custodian consent.
With IRA Financial Group’s Self-Directed IRA LLC, a special purpose limited liability company (“LLC”) is created which, as you may know, the IRA owns. However, you or a third party manages the LLC. The benefit of an LLC for investments is that LLC’s are seen as a passthrough entity for tax purposes. In other words, the owner of the LLC is subject to the tax, not the LLC itself.
Notably, IRAs are exempt from tax, as per the Internal Revenue Code Section 408. As a result, in most cases, all income and gains the IRA LLC generates flows back to the IRA tax-free. In addition, the LLC investment gives the IRA owner more control of his or her retirement funds. How so? By keeping the IRA funds at a LLC bank account and not with a far away custodian. This offers “checkbook control” and greater flexibility to make investments.
Unlimited Investment Opportunities
With a Self-Directed IRA LLC, you can invest in almost any type of investment opportunity that you discover, including:
- domestic or foreign real estate (rentals, foreclosures, raw land, tax liens etc.)
- private businesses
- precious metals (i.e. gold or silver)
- hard money
- peer to peer lending
- stock and mutual funds
Another great feature is, these investments flow back into your IRA tax-free. This is very similar to the 2017 Self-Directed Roth IRA Contribution limits.
No Transaction Fees – Easy IRA Investing
With a Self-Directed IRA structure, you have the power to act quickly on a potential investment opportunity. Investments opportunities are yours simply by writing a check or wiring the funds straight from your Self-Directed IRA LLC bank account.
A Self-Directed IRA LLC structure will help you save a significant amount of money on custodian fees. With a Self-Directed IRA LLC you no longer have to pay excessive custodian fees from account value and transaction fees. Instead, your IRA funds transfer tax-free via a passive custodian to a new LLC bank account where you, as manager of the LLC, can make investments, such as real estate, tax-free and without custodian consent.
Did you know?
More than one person can serve as manager(s) of a Self-Directed IRA LLC.