What is a Checkbook IRA?
A powerful tool for building wealth. Since the early 2000s, 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.
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Self-directed IRAs
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.
How does a Checkbook IRA 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. It is a popular choice for gaining “checkbook control” of an IRA. Here’s how the process goes:
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 and 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 and 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 with your self-directed account
Investments that make sense
It’s your money. It’s your future. Invest your way.
Schedule a complimentary consultationOur expert team is always ready to answer your questions. Call us at (949) 272-8785 or email contact@sensefinancial.com