Last Updated on February 7, 2020
What is the Pocket IRA?
The Pocket IRA is essentially the Self-Directed IRA with checkbook control. As a result, Pocket IRA investments include real estate, foreign currencies, tax liens and any alternative investment approved by the IRS.
Most investors believe they must use retirement funds in bank CDs, the stock market, or mutual funds. This is because financial institutions generally do not publicize the advantages of non-traditional investments. Banks and financial institutions would rather your retirement funds be used to purchase investments they offer. As a result, there is truly no incentive for them to disclose the advantages of the Self-Directed IRA.
The main advantage of the Self-Directed IRA is that you gain tremendous latitude and freedom to invest your plan assets and grow them in the way that suits your needs, interests, and personal expertise. For example, investors who do not feel comfortable investing in the stock market can invest they better understand.
The Pocket IRA Difference
How does the Pocket IRA transcend the way you invest? With the Pocket IRA, you can utilize the new IRA Financial app to establish your account, perform basic maintenance, and make investments directly from your mobile device. Additionally, our partnership with Capital One Bank allows our clients to establish a checkbook control IRA LLC or 401(k) plan account without leaving the comforts of their home. IRA Financial is the only self-directed provider that can open the Self-Directed IRA/Solo 401(k) LLC bank account for its clients and complete all necessary bank documentation. You never have to step foot in a bank to establish your LLC bank account.
The Future of Self-Directing Starts Here
Join IRA Financial and experience the future of self-directing. Establishing a Pocket IRA is simple and straightforward. Furthermore, your assigned IRA Financial specialist will assist you along the way.
How to Get Started:
- Establish your Self-Directed retirement plan with IRA Financial Trust & Capital One online through the IRA Financial App.
- Notify your current custodian to rollover your IRA assets to the IRA Financial Trust tax-free with the app.
- The assets will be transferred to the new Self-Directed IRA checking account and your assigned specialist will assist in opening the plan account with Capital One.
- As manager of the LLC, you can open the LLC bank account at any local bank. IRA Financial will draft an LLC Operating Agreement identifying you as manager of the LLC and the IRA as the sole member.
- Gain the freedom of checkbook control and make alternative asset investments how you want, when you want.
Discover the extraordinary benefits of using the Pocket IRA:
- Perform all Self-Directed IRA tasks digitally – whenever, wherever.
- Establish and Maintain Your Plan quicker and more securely than ever before.
- You never deal with a bank – your specialist will open the plan bank account and complete all bank documentation on your behalf.
- On one digital platform, you can fund your account, perform basic maintenance and make investments tax-free.
Pocket IRA Investments
Pocket IRA investments are the same as investing with any self-directed retirement plan. Therefore, you must be aware that the Internal Revenue Code (IRC) does not describe what a Self-Directed IRA LLC (Pocket IRA) can invest in, only the investments it cannot make.
Additionally, Internal Revenue Code Sections 408 & 4975 prohibit Disqualified Persons from engaging in certain type of transactions. These rules are designed to encourage the use of IRAs for the accumulation of retirement savings and to prohibit those in control of IRAs from taking advantage of the tax benefits for their personal account.
As you may know, self-directed retirement plans provide retirement account holders the ability to better diversify their retirement portfolio, invest in what they know and understand, buy hard assets as a hedge against inflation, and generate tax-deferred or tax-free gains, in the case of a Roth IRA.
Aside from collectibles, life insurance, and certain transactions with disqualified persons, you are generally able to make any investment with a Pocket IRA.
Below is a handful of the most popular Pocket IRA investment types in 2019 that you can purchase with retirement funds. If your IRA custodian allows it (or in the case of a “checkbook control” IRA LLC, the investment does not violate the IRS prohibited transaction rules under IRC 4975 or is not a collectible pursuant to IRC 408(m)), you can enjoy the benefits of tax-deferred income and gains. Or, in the case of a Roth IRA, your income and gains are tax-free.
- Real Estate
- Investment Funds
- Private Businesses/Private placements
- Tax liens/tax deeds
Get in Touch
IRA Financial will help you invest your retirement funds in assets you know and understand in a tax efficient and cost-effective manner. We have helped over 14,000 clients from all 50 states invest over $4 billion in alternative asset investments. Take control of your retirement funds and invest in your future with IRA Financial’s self-directed IRA solutions.
To learn how you can get started, contact IRA Financial directly at 800-472-0646 to learn more about the Pocket IRA.