Self Directed IRA LLC Structure for Private Lending
Investors today see the need to boost their retirement savings. One way to do this is through peer-to-peer or private lending. With Sense Financial Service’s Self-directed IRA LLC structure, it is now possible to conduct private lending using your IRA funds.
The Self-directed IRA LLC structure enables private lending to qualified parties. Use your retirement funds for private lending transactions, without taking a personal distribution from the IRA.
How is the the Self-directed IRA LLC structured?
Sense Financial first establishes a special-purpose, single member LLC. We also assist you in establishing a self-directed IRA with a passive custodian. You will work with the custodian to move funds into the new IRA. And in the final step, the passive custodian invests the IRA into the LLC. The LLC is then owned by the IRA, and you, as manager of the LLC, direct the assets of the LLC.
Your IRA LLC is ready to invest and participate in private lending. Use your Self-directed IRA LLC to lend to various qualified parties. And since you are lending from the LLC, your transactions through the LLC do not require custodian approval.
Who you can and cannot lend to
It’s important to know who you can and cannot lend your IRA funds to. While the IRS allows private lending ventures, you are responsible for knowing and following IRS guidelines for prohibited transactions. Prohibited transactions include using retirement funds with disqualified persons. You cannot lend to the following, for example:
- Yourself
- Your spouse
- Your child/children
- Your parents
- Your grandparents
- Your daughter-in-law or son-in-law
- Any entity or company directly controlled by disqualified persons
Sense Financial Services establishes the Self-directed IRA LLC structure for many of their clients. We are the trusted facilitator of self-directed retirement accounts with checkbook control. Contact us today to discuss the Self-directed IRA LLC solution.