Last Updated on February 7, 2020
The 2018 Self-Directed Roth IRA maximum contribution limits will remain the same as the contribution limits of 2017. Under the age of 50? The maximum Self-Directed Roth IRA contribution for 2018 will be $5,500. This amount is the same as 2017. Or, are you over the age of 50? The maximum Self-Directed Roth IRA contribution for 2018 will be $6,500. Again, the maximum contribution limits remain the same as 2017.
The Self-Directed Roth IRA LLC Solution
With a Self-Directed Roth IRA LLC, you can make traditional investments, such as stocks and mutual funds. You can also make non-traditional investments, like real estate and precious metals. All of this is tax-free and without custodian consent. With IRA Financial Group’s Self-Directed Roth IRA LLC, a special purpose limited liability company (“LLC”) is created. The Roth IRA owns this completely. However, you or a third-party person manages the LLC.
One advantage of using an LLC to make investments is that an LLC receives the same treatment as a passthrough entity for tax purposes. In essence, the owner of the LLC is subject to the tax – not the LLC itself. However, according to the Internal Revenue Code 408, IRAs are exempt from tax.
As a result, all incomes and gains a Roth IRA LLC generates generally flows right back to the Roth IRA – tax free. Additionally, the LLC investment vehicle lets the IRA owner take even more control of his or her retirement funds. This is because the owner can keep the funds at an LLC bank account instead of a custodian. This creates “checkbook control”, which means greater flexibility to make investments quickly.
Unlimited Investment Opportunities
You can invest in almost any type of investment opportunity with a Self-Directed Roth IRA LLC. This includes:
- 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
All income and gains from these investments will flow back into your IRA tax-free.
No Transaction Fees – Simple IRA Investing
With a Self-Directed Roth IRA structure, you 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, as manager of the LLC, simply write a check or wire the funds straight from your Self-Directed Roth IRA LLC bank account to make the investment.
A Self-Directed Roth IRA LLC structure will help you save a significant amount of money on custodian fees. With a Self-Directed Roth IRA LLC, you no longer have to pay excessive custodian fees based on account value and transaction fees. Instead, your Roth IRA funds will be transferred 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?
Additional contributions can be made to a Self-Directed Roth IRA LLC via the custodian.