HOW THE SELF-DIRECTED IRA LLC STRUCTURE WORKS
Working with our IRA Experts, establishing a Self-Directed IRA LLC is quick and easy. Our IRA Experts will take care of everything for you. The whole process can be handled by phone, email, fax, or mail. Our expert tax and ERISA professionals are on site greatly reducing the set-up time and cost.
1. Tax-Free Transfer of Funds.
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. With a Self Directed 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 IRA LLC, an FDIC backed IRS approved passive custodian is used. The 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. By using a Self Directed 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.
What Type of retirement Funds May be Transferred Tax-Free?
- Traditional IRA
- Roth IRA
- Plans for Self-Employed (Keoghs)
- Money Purchase Pensions Plans
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.
All the Passive Custodians we work with are FDIC 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 those funds.
2. Creation of the Self-Directed IRA LLC:
Our in-house tax professionals will form your customized Self-Directed IRA LLC in the state of your choosing. Typically the LLC is formed where the initial IRA investment will be made. Because your IRA and not you will be the member of the LLC, your state residence is not relevant in determining the state in which your LLC will be formed. In addition, a specially drafted Self-Directed IRA LLC Operating Agreement, which is required, will be drafted by our tax professionals as well a Tax ID# will be acquired as part of the LLC formation process.
Our IRA Experts will consult with you on the formation of the new Self-Directed IRA LLC to assure that the LLC is formed in the appropriate state.
3. Open a local bank account for the LLC
Our tax professionals will provide you with the appropriate LLC documents so you can open your IRA LLC checking account at any bank or credit union of your choice.
4. Transfer of IRA Funds to New LLC Bank Account
You, as IRA owner, will direct the Passive Custodian to transfer the IRA funds to your new Self-Directed IRA LLC bank account. The IRA would then become a member of the Self-Directed IRA LLC.
5. Appointment of Manager of LLC
As the Manager of the Self Directed IRA LLC with "Checkbook Control", you will have the freedom to make all investment decisions for your Self Directed IRA LLC quickly and without custodian consent. As Manager of the Self Directed IRA LLC, you will be able to write a check or wire money from the LLC bank account to make an Investment.
6. Self-Directed IRA Investment is Made
As manager of the LLC, you will have the authority to make investment on behalf of your IRA LLC. The Investment must be made in the name of your Self Directed IRA LLC. All income and gains generated by your IRA LLC will generally flow back to the IRA tax-free!
For additional information on the advantages of using a Self-Directed IRA LLC with "checkbook control" to make investments, please contact one of our IRA Experts at 800-472-0646.
Self Directd IRA LLC Structure
To view a diagram of the Self Directed IRA LLC structure, please select the image below.