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What is a Checkbook Control IRA?

What is Checkbook Control

Checkbook Control IRA – Checkbook Control Self-Directed IRA

A “Checkbook Control” IRA refers to a Self-Directed IRA LLC. A Self-Directed IRA LLC with “Checkbook Control” is an IRS and tax court approved structure. It allows you to use your IRA funds to make almost any investment. This includes real estate, tax liens, precious metals and much more – tax free!

With a checkbook control IRA, you don’t need custodian consent for investments. And you no longer have to deal with hefty custodian fees. Whereas a Custodian Controlled Self-Directed IRA, you can make alternative asset investments, but custodian consent is required to enter into and execute transactions. This can result in long delays and even high custodial fees. A custodian control Self-Directed IRA is a popular structure among investors whose investments do not involve a high frequency of transactions.

A Checkbook Control IRA enables you to complete transactions through your IRA’s physical checkbook. This makes it easier to pay bill, access funding, and deposit income. In addition to saving money by avoiding custodian fees, Checkbook Control IRA’s increase the speed of your transactions. Checkbook Control IRA’s are perfect for individuals that value speed, privacy, and want to be in control over their IRA.

Benefits of a Checkbook Control IRA

First, you should establish a Checkbook Control IRA for the following reasons:

So, if you fall into any of the above categories, it’s time to start your checkbook self-directed IRA.

First, understand that the IRA owns and operates an LLC, which is also known as a limited liability company. However, the you (IRA holder) manages the LLC. Your funds will then transfer over to a new IRA LLC bank account by a passive custodian. As a result, when you find a good investment, seize the opportunity. Write a check or wire the funds straight from your Self-Directed IRA LLC bank account to make investments. It’s that simple!

As you can see, speed is a benefit with checkbook control. The Self-Directed IRA LLC with “checkbook control” eliminates delays from an IRA custodian.

Learn More About a Checkbook Control IRA

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“Checkbook Control IRA” Offers Investment Alternatives

With a check control IRA, you can invest in almost any type of investment. This includes:

  1. real estate
  2. private business entities
  3. tax liens
  4. foreign currency
  5. commercial paper
  6. cryptocurrency
  7. alpaca farming
  8. hard money loans

This greatly contrasts from a traditional IRA custodian, such as Vanguard or Fidelity. Traditional IRA custodians only allow IRA investments for stock or mutual funds (traditional assets). However, a Self-Directed IRA LLC with “checkbook control” allows you to make non-traditional investments with your IRA funds. Again, this includes commodities such as precious metal or real estate.

These investment opportunities are practically unlimited. And it allows you to diversify your retirement portfolio.

Choosing The Right Self-Directed IRA Depends On What You Want To Own

Below is a partial list of allowable investments:

  • Residential or commercial real estate
  • Raw land
  • Foreclosure property
  • Mortgages
  • Mortgage pools
  • Deeds
  • Private loans
  • Tax liens
  • Private businesses
  • Limited Liability Companies
  • Limited Liability Partnerships
  • Private placements
  • Gold
  • Stocks, bonds, mutual funds
  • Most currencies

How to Open a Checkbook Control IRA

At IRA Financial Group, our team will take care of the entire structure. The process can be complete via phone, fax, email, or mail. This process typically takes between 7-21 days to complete. However, it depends on the state the business resides in, along with the custodian holding your retirement funds.

We have a team of in-house tax and ERISA professionals ready to reduce your set-up time and cost. Most importantly, each client of the IRA Financial Group is has a retirement tax professional they work with directly. This helps with establishing the Self-Directed IRA LLC “Checkbook Control structure.

The Checkbook IRA Process with a Self-Directed IRA

We can complete the process in six easy steps, which we have broken down for your benefit.

Establish a Self-Directed IRA

A Self-Directed IRA account is established with an IRS approved and FDIC backed passive custodian.

Transfer Funds

Next, the retirement the passive custodians transfers your funds. These go to the new Self-Directed IRA account – tax-free!

Form an LLC

A Limited Liability Company (LLC) is formed. This is through the IRA account owner/Manager and the IRA as owner (member) of the LLC.

Fund Your Checkbook IRA

At the direction of the IRA owner, the passive custodian invests the IRA funds into the new IRA LLC. You can use one or more of the IRAs to fund the account. This includes Traditional, Roth, and SEP IRAs.

Direct IRA Funds to New LLC

The Manager of the new IRA LLC (the IRA owner) directs all, or a portion, of the IRA funds in the new LLC bank account for investment.

Make Investments with your Checkbook IRA

The LLC makes an investment using IRA funds and all income and gains generally flow back to the LLC tax-free!

Learn More: What Not to do with a Checkbook IRA

Get in Touch

Do you still have questions regarding checkbook IRA that we didn’t cover in this article? Contact IRA Financial Group at 800-472-0646.

Did you know?

Self-Directed IRA LLCs have been approved by the IRS & Tax Court and that means you can use a Self-Directed IRA to make all traditional investments, as well as purchase real estate, foreign investments, and cryptocurrency. Contact IRA Financial today!


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