When it comes to self-directed IRA accounts, there is a lot more flexibility and freedom compared to a standard 401(k) or traditional IRA. For investors who like to keep control over their finances, having an IRA checkbook is important and will open more options and opportunities. In the ideal scenario, you will write a check for real estate or other investments using your self-directed IRA LLC. You can also buy precious metals and store them locally a checkbook gold IRA.
With IRA checkbook control you can invest in whatever you like as long as it doesn’t violate a short list of prohibited transactions. In many investment scenario’s time is of the essence. With a checkbook IRA, you invest in assets by writing a check instead of waiting for a custodians’ approval.
Is Your retirement account is stale?
If you have a stale 401(k) or employee sponsored retirement account with a balance that rarely goes up or down, you will likely feel frustrated. It’s easy to take money you already have and roll over the funds into an IRA checkbook account. Another option is to set up a new self-directed IRA with an annual retirement contribution.
Once you have checkbook control over your IRA investing is as simple as 123.
1. Find your investment
2. Fund the investment via check, check card, wire, etc…
3. Receive payments under your IRA LLC and repeat.
Follow Ze Rules!
If you believe in understanding the rules and using them to your advantage and not breaking them, you will appreciate how a self-directed IRA works. With a self-directed IRA LLC, you are not restricted to any “in-house” rules imposed by your custodian or plan administrator. Instead, the only restrictions that apply are those imposed by IRA Law. A checkbook IRA must be setup very carefully – but if done properly, will give you most authority and keep you off the IRS radar.
The following are examples of possible prohibited transactions with an IRA.
– Borrowing money from it
– Selling property to it
– Using it as security for a loan
– Buying property for personal use (present or future) with IRA funds
Have you lost faith in the stock market?
If you are like most Wall Street investors you either don’t like the rate of return you are getting or don’t like the risks your IRA is taking. When the stock market experiences another correction, it could delay your retirement deadlines a bit longer. With a checkbook IRA, you get the chance to invest in safe alternative investments that you can see and understand.
If your goal is a double-digit return without huge risks, explore alternative investments you can own in a self-directed IRA. Investing close to home has its own sense of security and it won’t matter what positions China is dumping.
The Cash Buyer Advantage
Whether you want to invest in tax liens/deeds, foreclosure properties, estate sales or ugly homes that need easy cosmetic work… You maintain greater control with a checkbook IRA. In some cases, investors need to bring money to the auction to place a competitive bid on a distressed property. When urgency is a factor, rely on a checkbook IRA.
You want tax advantages
Whether you pick a self-directed Roth IRA or a traditional IRA, you receive several tax advantages. Your decision will depend on whether you want to lower your taxable income with a traditional IRA contribution or receive tax-free income when you retire. With a self-directed IRA, you not only get the tax advantages of a retirement account. You also get the flexibility and freedom to invest in asset types not allowed in a traditional account. For example, you can invest in accounts receivables, businesses, private equity investments and real estate lending.
Other names for an IRA checkbook account include “checkbook control” accounts, checkbook LLC or checkbook IRAs. The main purpose is to allow you to make quick investment decisions based on your own sound research and instincts. Even though you may make quick investment decisions, many people continue to invest for the long-term with their self-directed IRA accounts. A self-directed account can either cater to people with a conservative or aggressive style of investing.
At New Standard IRA, we help our clients fund their retirement dreams with a checkbook self-directed IRA according. We know novice and longtime investors want to jump on real estate deals and other alternative investment opportunities without limitations and time delays. A truly self-directed IRA is one that provides checkbook control. For more information about the LLC structure for self-directed IRA’s and checkbook control in Austin, TX, please contact us.