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Report Shows “Checkbook Control “ Self-Directed IRA LLC Clients Savings over 40% in IRA Account Fees over a Five-Year Period

Self-Directed IRA LLC structure offers cost effective options for retirement investments, such as real estate versus a custodian controlled IRA account, IRA Financial Group report suggests.

IRA Financial Group, the leading provider of “checkbook control” self-directed IRA LLC announces the result of its internal survey which examined the investments being made by over 500 self-directed IRA clients and found that its “checkbook control” IRA clients saved over 40% in IRA account fees over a five-year period versus establishing an account at a custodian controlled self-directed IRA custodian.

There are essentially two ways to make non-traditional investments, such as real estate 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 self-directed IRA investments.

Under the checkbook IRA format, the IRA is set up as a self-directed account that’s capitalized by funds rolled over from your 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 and you are ready to invest at your discretion. A “checkbook control” Self Directed IRA allows one the ability to eliminate the delays associated with an IRA custodian, enabling the IRA holder to act quickly when the right investment opportunity presents itself.

According to Adam Bergman, a tax partner with the IRA Financial Group, one of the main advantages of using a “checkbook control” IRA LLC is the cost savings. “Because the “checkbook control” IRA LLC is established at a local bank and the individual IRA holder and not the self-directed IRA custodian is involved in the transaction, the fees associated with establishing and maintaining a “checkbook control” IRA LLC is significantly less expensive than a custodian controlled self-directed IRA. “Our internal report showed that over a five-year period our clients, on average, were able to save over 40% in self-directed IRA account fees by using a “checkbook control” IRA LLC structure versus a custodian controlled self-directed IRA over a five-year period,” stated Mr. Bergman.

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 one of our tax experts at 800-472-0646.

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Posted in IRA Financial Group, Self-Directed IRA