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“Checkbook Control” Self-Directed IRA LLC Can Help Protect IRA Assets from IRA Custodian Malfeasance

Self-Directed IRA LLC structure offers the IRA holder the ability to hold IRA assets at a local bank and far away from any potential IRA custodian misbehavior.

IRA Financial Group, the leading provider of “checkbook control” self-directed IRA LLC announces the result of its client survey which examined the financial risks involved in using a full service IRA custodian to make self-directed IRA investments versus a “checkbook control” IRA LLC. In the case of a full service IRA custodian, the IRA holder is required to keep all IRA assets with the IRA custodian and is required to go through the IRA custodian to make all investments. Accordingly, any misconduct associated with the IRA custodian can potentially put an individual’s IRA assets held with the IRA custodian in financial risk. Whereas, in the case of a “checkbook control” self-directed IRA LLC, all the IRA funds are held at a local bank in the name of the LLC and not with an IRA custodian. “Our clients have found that having their IRA funds at a local bank they know and trust has given them the comfort of knowing their IRA assets are better protected against any potential Self-Directed IRA custodian malfeasance, “ stated Jacky Ospina, a retirement tax specialist.

There are essentially two ways to make non-traditional investments, such as buying real estate or precious metals with a self-directed IRA: (1) An IRA custodian controlled self-directed IRA, which typically involves a special financial institution or IRA administrator will serve as the custodian of the IRA. With a custodian controlled Self-Directed IRA, the IRA funds are generally held with the IRA custodian and the IRA custodian, at the IRA holder’s direction, will then invest those IRA funds accordingly. The IRA custodian is involved in every facet of the self-directed IRA transaction from signing checks to documentation and the account fees are typically asset and transaction based. (2) A “checkbook control” self-directed IRA LLC that offers the IRA holder with more control and cost efficiency when making IRA investments.

Under the self-directed IRA LLC “checkbook control” structure, the IRA is set up as a self-directed account that’s capitalized by funds rolled over from a current retirement account. Then, a LLC is created in which your new IRA purchases all the membership units/interests. At that point, the IRA funds are held in an LLC bank account and are ready to invest at your discretion. A “checkbook control” Self Directed IRA allows one the ability to eliminate any risks associated of having their IRA funds placed at risk due to the financial failure of any IRA custodian. “Because most of the Self-Directed IRA custodians are smaller trust companies than a major bank or financial institution, there is some potential risk that ones IRA assets can be in jeopardy in the case of any IRA custodian misconduct,” stated Ms. Ospina.

The IRA Financial Group was founded by a group of top law firm tax and ERISA lawyers who have worked at some of the largest law firms in the United States, such as White & Case LLP, Dewey & LeBoeuf LLP, and Thelen LLP.

IRA Financial Group is the market’s leading “checkbook control” Self Directed IRA Facilitator. IRA Financial Group has helped thousands of clients take back control over their retirement funds while gaining the ability to invest in almost any type of investment, including real estate without custodian consent.

To learn more about the IRA Financial Group please contact us at 800-472-0646.

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Posted in Self-Directed IRA