Reasons for the IRA LLC
- Selection of the proper self-directed IRA custodian – this alone can save you thousands of dollars a year.
- Creation of the LLC for the IRA – not creating the LLC properly can cause the IRA to be fully distributed.
- Specialized Operating Agreement – creating the LLC is just the beginning. You have to know the proper rules to operate the LLC.
- Ongoing advice – LLCs are inexpensive entities, what you are really paying for is access to professionals who understand the ins and outs of the tax code in regard to IRAs. This is important as one fine or penalty can be 200K in fines alone.
- Checkbook control. Ever lost a deal because you couldn’t gain access to your money fast enough? That’s not going to happen again with your IRA LLC.
- Access to investment providers – A major part of our job is seeking out and finding alternative investment concepts that no one from wall street is going to share with you. Working with us means that you are in the “loop”.
- Asset Protection – What is the purpose of building up a large nest egg if the viper down the street can just slither in and take it all away from you in one frivolous lawsuit? With the LLC you have an additional layer of asset protection.
- Updated information – the tax codes are constantly changing. In the last year there have been a number of fines and penalties, to the tune of hundreds of thousands of dollars, added to the code to penalize those who are unaware. Our role is to make sure you are educated.
Can’t I get all this with just a self directed IRA?
- Do you really want a custodian to constantly be looking over your shoulder?
- You will need to fill out paperwork, and pay fees to gain access to your money.
- If you have a rental property that need repairs immediately. . . good luck getting the money from your custodian within the week.
- When you want to make a deal, who are you going to check with to make sure it’s allowable. As we said earlier, a number of new penalty provisions can cost you $100,000 + , even if your IRA is only $5.
- Once you have self directed control of your IRA. . . now what? Where are you going to invest that money? How are you going to do you due diligence on all the promoters trying to get your money?
- Without an LLC inside your IRA, how much protection does your nest egg have? Are you really ready to take on that much risk?
Can I move my 401(k) into a Self-Directed IRA?
Yes, you can use a rollover to transfer money from a 401(k) from an old workplace to a self-directed IRA. Your account can also be funded through transfers and cash contributions. The IRS announces IRA contribution limits each year, which must be adhered to when making contributions.
Can you invest in real estate with a Self-Directed IRA?
Yes, the most common investment among the clients is real estate, sometimes known as a real estate IRA. Customers have the choice to invest in a wide range of assets, including residential and commercial real estate, vacant land, mortgage notes, and lots more.