Self-Directed IRA LLC with Checkbook Control
It's possible to move your IRA account into a self-directed IRA LLC with checkbook control. This will allow you to buy alternative investments. There are a very limited number of Self Directed IRA custodians in the US which allow investing in real estate, real estate options, contracts, notes, mortgages and trust deeds. Listed below are the steps to setting up the account:
Identify a Self Directed IRA custodian that will allow you to invest your IRA into a Limited Liability Company. Then you will open an IRA account and transfer or rollover your funds to this new IRA Account. (Link to informational website containing a list of Self Directed IRA Companies, reviews and estimated cost spreadsheet) also Sunwest Trust
Set up the IRA LLC. The participating company will write the operating agreement with some verbage relating to the fact the LLC is set up for your IRA. (Link to a suggested company who provides LLC creation Blue Diamond Documents).
Request your IRA custodian write a check out of your IRA payable to the LLC. Providing you the check as the manager, you will go and open a checking account in the name of the LLC and deposit that into your LLC checking account. You will then have checkbook control of your retirement funds.
There are some rules involved with this self-directed IRA. Internal revenue code 408 excludes buying Collectibles or Life Insurance. Internal Revenue code 4975 prohibits a transaction with anyone or anything related to the retirement account. This will include yourself, your spouse, children, grandchildren, grandparents and all their spouses.
This is just a quick summary of using your IRA to buy various types of investments. Learn all you can to see if this sounds like something that would work best for you. www.youtube.com with keywords "self-directed IRA LLC checkbook control" offers more detail information videos.
Return to http://phxincomeproperties.com
Donna Irby, ABR, Sales Agent
Homesmart
(602)301-2444
Arizona Investment Property