There are approximately 2.5 million Self Directed IRA accounts in the United States. In the last several years, the number of Self Directed IRA accounts has grown drastically. The Self-Directed IRA LLC "Checkbook Control" structure is tax court and IRS approved.

The Self Directed IRA LLC "Checkbook Control" Structure has been in use for over 30 years. The notion of using an entity owned by an IRA to make an investment was first reviewed by the Tax Court in Swanson V. Commissioner 106 T.C. 76 (1996). In Swanson, the Tax Court, in holding against the IRS, ruled that the capitalization of a new entity by an IRA for making IRA related investments was a permitted transaction and not prohibited pursuant to Code Section 4975. The Swanson Case was later affirmed by the IRS in Field Service Advice Memorandum (FSA) 200128011.

In FSA 200128011, the IRS, in providing guidance to IRS agents for purposes of conducting audits, confirmed the Tax Court's holding in Swanson and held that a newly established entity owned by an IRA and managed by the IRA owner is permitted to make investments using IRA funds without violating the prohibited transaction rules under Internal Revenue Code Section 4975.

A Self Directed IRA LLC "Checkbook Control" structure offers one the ability to use his or her retirement funds to make almost any type of investment on their own without requiring the consent of any custodian. Tired of being forced to invest in stocks or mutual funds? Have an investment opportunity, such as real estate or a business investment that you would love to make with your IRA funds? Then the Self Directed IRA LLC is your solution. In addition to the tremendous IRA benefits (tax-free gains, tax deductions, asset protection and estate planning), the Self Directed IRA LLC allows you to invest tax-free in investments that you know and understand quickly and without custodian consent. Aside from life insurance, collectibles and certain "prohibited transaction" investments outlined in Internal Revenue Code Section 4975, a Self-Directed IRAs can invest in most commonly made investments, including real estate, private business entities, public stocks, private stocks, and commercial paper.

To learn more about the Self Directed IRA LLC structure, contact one of our IRA Professionals at 800-IRA-0646 today!