With a self directed IRA LLC, the individual has the ability to control how the IRA funds will be invested. When setting up a Roth IRA, the IRS code requires a written agreement that contains mandatory provisions. Your custodial firm will normally complete the necessary agreement and provisions of the process. With an IRA, you can contribute up to a certain dollar amount, or the contribution can come by rollover from an approved plan.
With a self directed Roth IRA, the account owner will be making all investment decisions, requiring due diligence of the owner. Although self directed IRA’s are more complicated, it is perfect for the individual who has a preference for, and experience with, certain types of investment vehicles. Self directing the funds empowers account holders to exercise maximum control and creativity with their investments. When a market trend or opportunity begins to form, they can take maximum advantage of it. This is great for those with knowledge, or for those who are willing to educate themselves. This allows their retirement funds to grow significantly faster than the typically small returns of managed programs.