Making an investment through a Self-Directed Roth IRA LLC can be done in a few easy steps:
1. Set up a Self-Directed Roth IRA LLC
With IRA Financial Group, you no longer have to spend $2000 to $5,000 or more to set up your Self-Directed Roth IRA LLC.
We provide the following all for one low price
- Free tax consultation with our in-house retirement tax professionals
- Setup your LLC in the State of your choice
- Prepare and file the Articles of Organization with the State
- Generate a special purpose, IRA Custodian approved Self-Directed Roth IRA LLC Operating Agreement
- Generate a special purpose, IRA Custodian approved Subscription Agreement, as required by the Custodian
- Obtain the EIN from the IRS
- Co-ordinate setup with the Custodian of your Choice
- Free tax and IRA support regarding the Self-Directed Roth IRA LLC Structure
- Expedited Service Guarantee!
- Satisfaction Guaranteed!
2. Transfer of Retirement Funds Tax-Free
Our IRA Experts will assist you in transferring your retirement funds tax-free from your current custodian to a new FDIC backed/IRS approved Passive Custodian that allows for truly Self-Directed IRA investments, such as real estate, tax liens, precious metals, and much, much more.
What is a Passive Custodian?
The IRS approved and FDIC backed custodian in the “checkbook control” Self-Directed IRA LLC structure is referred to as a “passive” custodian largely because the custodian is not required to approve any IRA related investment and simply serves the passive role of satisfying IRS regulations. The passive custodian business model is built around the establishment and maintenance of IRAs, whereas a traditional IRA custodian generates income through the marketing and sale of investment products.
All the passive custodians we work with are FDIC, such as IRA Financial Trust, backed and IRS approved. Once your custodian has transferred your retirement funds to the passive custodian, the passive custodian will immediately transfer your funds to your new IRA LLC where you as manager of the LLC will have “Checkbook Control” over the funds.
With a Self-Directed Roth IRA LLC with “checkbook control” you no longer have to pay excessive custodian fees based on account value and transaction fees. Instead, with a “checkbook control” Self-Directed Roth IRA LLC, an FDIC backed IRS approved passive custodian is used. By using a Self-Directed Roth 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.
Our IRA Experts will assist you in completing all the necessary custodian documents so your retirement funds are transferred to the new passive custodian quickly and without any tax.
3. Open IRA LLC Bank Account
Open a local bank account for the LLC at any bank of your choice. You can open a bank account for your Self-Directed IRA LLC at any bank or credit union.
4. Tax-Free Transfer of Funds to LLC Bank Account
Direct the passive custodian to transfer the IRA funds to your new Self-Directed Roth IRA LLC bank account. The IRA LLC checking account can be opened at any bank or credit union.
5. “Checkbook Control”
As the Manager of the Self-Directed Roth IRA LLC, you will have the freedom to make all investment decisions for your Self-Directed Roth IRA LLC. In other words, you will have “checkbook control” over your IRA funds allowing you to make an IRA investment by simply writing a check or wiring funds directly from the IRA LLC bank account.
6. Tax-Free Investing
Since your IRA will become the owner(s) (member(s) of the newly formed IRA LLC, all income and gains generated by an IRA LLC investment will generally flow back to your IRA tax-free. With a Self-Directed Roth IRA LLC, all income and gains associated with the Roth IRA investment grow tax-free and will not be subject to tax upon withdrawal or distribution. This is because unlike traditional IRAs, you are generally not subject to any tax upon taking Roth IRA distributions once you reach the age of 59 1/2.
Because an LLC is treated as a pass-through entity for federal income tax purposes, all income and gains are taxed at the owner level not at the entity level. However, since an IRA is a tax-exempt party pursuant to Internal Revenue Code Section 408 and, thus, does not pay federal income tax, all IRA investment income and gains will generally flow through to the IRA tax-free!
Once your new Roth account is set up, you have the option of directly contributing to the plan. The only caveat is that you need earned income during the year(s) you wish to contribute. Basically, money earned from services performed, such as a salary from a job, constitutes earned income. Passive income, such as dividends or rental income, do not count.
For 2022, you are allowed to contribute up to $6,000 to your Self-Directed Roth IRA LLC, or your earned income for the year, whichever is less. Plus, if you are at least age 50, you may make an additional $1,000 catch-up contribution. Therefore, you can contribute up to $7,000 for the year.
Work with the Self-Directed Roth IRA Experts
IRA Financial Group will take care of the entire setup of your Self-Directed Roth IRA LLC “Checkbook Control” structure. The whole process can be handled by phone, email, fax, or mail and typically takes between 7-21 days to complete, the timing largely depending on the state of formation and the custodian holding your retirement funds.
Our IRA experts and tax and ERISA professionals are onsite greatly reducing the setup time and cost. Most importantly, each client of the IRA Financial Group is assigned a retirement tax professionals to help with the establishment of the Self-Directed Roth IRA LLC “Checkbook Control” structure. You will find that our fee for this service is significantly less than other companies that perform the same or similar services.