IRA LLCs are a powerful tool in the self-directed retirement world. An IRA LLC is a special type of self-directed IRA where you have “checkbook control” over your retirement funds. This means that instead of asking a custodian for permission to complete an investment, you are able to execute investments directly because you have the checkbook that holds your retirement funds.
The IRA LLC structure has been in existence since the late 1980’s and is a favorite among self-directed investors who want to be able to quickly and easily invest their funds without having to go through a custodian.
The process to set up a self-directed IRA LLC with Nabers Group is simple:
- Complete a short application so we can prepare your IRA and LLC documents
- We’ll help you open a new Self-Directed (traditional or Roth) IRA
- Our team will form a new Special Purpose LLC specifically for you to invest your IRA funds
- Rollover funds into your new SDIRA
- Invest those IRA funds into the LLC you control
On a practical level, this will entail your LLC having a brand new bank account to receive your IRA funds. You’re the sole signor on that bank account, and you’ll have a checkbook for the LLC bank account as well. This is what gives you checkbook control of your IRA funds.
If you’re thinking of establishing an IRA LLC, you might be wondering about best practices in having checkbook control of your retirement funds.
After all, there are different moving parts from your IRA and your LLC, and with you having direct control of your IRA funds, you want to do things the right way.
To help our IRA LLC clients, we made a helpful checklist of do’s and don’ts for your IRA LLC:
The IRA LLC is an excellent option if you have retirement funds in a Roth IRA, or if you don’t qualify for a Solo 401k.
Our Self-directed investing specialists are standing by ready to help answer your questions and help you find the retirement account that’s perfectly suited for you. Call us at (877) 765-6401 today and we’ll be happy to see how we might be able to help!
