Self Directed IRA LLC
Self directed IRAs are growing in popularity because they make it possible for people to control their investments the way that they want to.Â Taking another step further in control is the self directed IRA LLC, and IRA set up with a Limited Liability Company structure. In this form, the account holder can instruct his custodian to invest in the LLC that he manages himself. The LLC is a business enterprise using elements of partnership businesses and corporate structure.Â The self directed IRA LLC minimizes custodial fees since the involvement of the account custodian or trustee is limited. The start-up charges for the account will be higher because of the additional paperwork , and it is a good idea to speak with an incorporation specialist or attorney before beginning . The profits from the LLC with the IRA receive tax deductible status. A landmark case in 1996 gave investors the right to pass profits they receive through the LLC directly into the IRA and retain the same favorable tax treatment. The account holder of the self directed IRA LLC is usually the only one with authority for the LLC and all associated financial accounts. The same regulations apply for use of the retirement funds as with any IRA, and the investment choices are similar to other types of self directed plans . The owner may select traditional investments including stocks, bonds and mutual funds, or go for less traditional investment vehicles including tax liens and real estate notes. In the self directed IRA LLC the custodian is normally not directed to make the transaction, and does not have the authority to limit the owner to certain types of investments. The owner has checkbook control over the plan and the ability to make investment decisions quickly , even by simply writing a check. For those people who are confident about their investment philosophy, the self directed IRA LLC offers ultimate control over their retirement money.