What is a Checkbook IRA?

Checkbook IRA: A Powerful Tool for Building Wealth

Since the early 2,000s, the number of self-directed IRAs has more than doubled! These plans give individuals the ability to invest in assets that they understand and can control, such as real estate. Investors who have knowledge and expertise in a particular investment asset can purchase them in a tax-free or tax-deferred environment.

Self-directed IRAs are qualified retirement plans in which the account holder is the sole investment decision maker. According to IRS regulations, a qualified custodian (bank or trust company) holds the assets of an IRA on behalf of the account holder. The IRA custodian maintains the assets and all transaction records of the account, issues periodic statements, files required IRS reports, and performs other administrative duties on behalf of the account holder.

The Checkbook IRA: How does it help you?

A Checkbook IRA (also known as an IRA-owned LLC or IRA LLC) is a cost-effective and time-efficient investment vehicle available to self-directed IRA investors. This investment vehicle is a popular choice for gaining “checkbook control” of an IRA. Here’s how the process goes:

Open a self-directed account with an IRS-approved custodian.

Roll over funds from your existing IRA or 401k plan.

A special purpose LLC is created, which is owned by the IRA. You will act as the manager of this LLC.

You direct the custodian to purchase 100% of the LLC units.  The LLC is then funded and ready for investments.

As a result, you get a legal structure allowing you (the account holder) to make transactions using your IRA funds at the LLC level without custodial involvement. The Checkbook IRA method is used to eliminate the “red tape” and transaction delays associated with a custodian, which gives you “checkbook control” over your retirement account. It also eliminates all the transaction and asset-based fees that would be charged by the custodian.

Our establishment service includes:

  • A dedicated account manager
  • Access to our client portal with detailed flowcharts and instructions for each step
  • Assistance with the establishment of a self-directed IRA with an IRS-approved custodian
  • Establishment of (1) one Special Purpose LLC
  • All state, legal and filing fees are included in the establishment fee
  • Preparation & filing of Articles of Organization
  • Preliminary name search
  • Preparation of EIN filing and acquisition of an EIN number
  • Obtaining a Certificate of Organization from the Secretary of State
  • Filing of a Notice for Publication (if required) and paying applicable fees
  • Assistance in the establishment of an IRA LLC business bank account
  • A customized & IRS-compliant Operating Agreement
  • Assistance in the completion of documents to transfer funds to the LLC
  • Registered agent service for the first year

Alternate investment options you get with a Self Directed Solo 401k:

Real Estate

Precious Metals

Private Business

Stock & Funds

Private Lending

Tax Deeds/Liens

Financial Concepts that Make Sense!

Greater Flexibility. Investment Freedom. Hassle-Free Management.

Our expert team is always ready to answer you! Give us a call at (949) 228-9394. You can email us at contact@sensefinancial.com

Live Q&A Session: Wednesday April 12th 11:00 PST