For ultimate flexibility when planning for your retirement future, why not consider a self directed IRA LLC? You can make all the decisions associated with your investments and retirement plan yourself when thinking about this form of individual retirement account, commonly known as the IRA. Many people look at this as an exciting and potentially very beneficial way to control their own retirement accounts. These highly flexible options can be used for a wide range of potential investments, including real estate purchases (domestic or international), private equity, partnerships, franchises, mortgages, small businesses, tax liens and so on. In truth, there is an almost unlimited array of options available to you with a self-directed IRA.
Any qualified retirement account can be rolled into a self-directed IRA, including a traditional IRA, Roth IRA, 401(k), 403(b) and so on. The funding from these introduced accounts is injected into the new plan and then shares are purchased in a custom made limited liability company, LLC. This is a legal and established process that allows you to assume control over your retirement account investments, with no early distribution taxes, transaction fees or other restrictions.
If you engage in this type of creative formatting, the potentially punitive asset-based and transactional fees that are associated with self directed IRA custodians can be avoided, and this can add up to hundreds or thousands of dollars in a given year. You will also be in the great position of being able to take advantage of any potential investment opportunities, foreclosures for example, that might be sensitive from a time perspective. With a self-directed IRA LLC, you don’t have to deal with the complex and time-consuming restrictions associated with gaining custodial approval.
Normally, a custodian must be appointed to oversee all IRA matters. If a rental property is involved, as an example, rent checks must be forwarded to the IRA custodian on a monthly basis. From time to time, repairs would be necessary, but the custodian must issue approval before you can move forward. Each time the custodian gets involved, you can be sure that you will be paying transaction fees. Now, in the case of a self-directed IRA, when using an LLC structure all the custodian does is to invest funds into the LLC at the outset. The day by day operation of the account is then the responsibility of the LLC manager, which in this case is you. You can collect and deposit the rent checks, arrange for repairs to the property, and write a check for related expenses on-the-spot. You are not hostage to others and are in complete control when you set up a self directed IRA LLC.
We already determined that there are a potentially unlimited number of investment options available when you consider a self directed IRA LLC. While that is true, there are a couple things you cannot invest in. The Internal Revenue Service (IRS), only points out two things that you cannot invest in with these self-directed IRA accounts, and they are life insurance contracts and collectibles. Normally, collectibles refer to works of art or jewelry. But this category can also extend to silver or gold coins, in certain instances. The coins that are not allowed have a value which is more derived from their collectible status, than the actual gold or silver content — thus making them a collectible.
For individuals seeking investment options with more security, and looking for life outside of the stock market, there is no better structure than a self-directed IRA LLC. It’s a great feeling when you have every day, hands-on control over your investments and the chance to build a really diversified portfolio, when using self-directed IRA programs.
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