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Take checkbook control of your retirement funds.

Name yourself a manager to oversee investment activities.

Boost your exposure to alternative IRA investments.

Checkbook IRA Benefits

"Checkbook IRA" is a descriptive term for a self-directed retirement account in which the holder establishes a private entity—typically an LLC—as the IRA-owned asset. Responsible account holders can enjoy a higher degree of flexibility under this model.

Once established, you may fund the LLC with your retirement funds and name yourself as manager. You may then assume checkbook control and allocate funds in any legal manner, allowing you to explore a broad range of IRA-eligible alternative investment options without having to follow the specific procedures of a self-directed IRA custodian (though all IRS rules still apply).

Special Considerations for Checkbook IRAs

  • You must oversee the generation of entity documents and ensure they comply with applicable state laws.
  • With direct custody of your retirement assets, you, not your IRA custodian, must perform all recordkeeping activities. You effectively run a business on behalf of your retirement plan, so your management practices must reflect this.
  • To this same effect, you must acquire a fair market valuation of assets owned by the LLC and file taxes accordingly.
  • To verify the legality of your proposed Checkbook IRA structure, we require an Attorney Opinion Letter.
  • Once your account is established, you're responsible for afirming the ongoing legality of your chosen investment approach. Always remember that assets or transactions prohibited in an IRA are equally prohibited in an IRA-owned LLC.
  • You may not take direct distribution from the LLC. Cash and/or holdings must flow back to the IRA before any withdrawals may occur.

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