Take Control with the Self Directed IRA LLC

Self directed IRAs are popular because they allow people to control their investments the way that they want to.  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 the custodian to invest in the LLC that he manages himself. The LLC is a business enterprise using elements of partnership businesses and corporate structure.  The self directed IRA LLC minimizes custodial fees because the involvement of the account custodian or trustee is restricted. The start-up charges for the account will be higher due to the complexity , and it is a good idea to consult 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   authorized investors the right to pass profits they receive through the LLC directly into the IRA and keep 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 monetized accounts. The same rules apply for use of the retirement funds as with any IRA, and the investment options are similar to other kinds of self directed plans . The holder could decide on traditional investments including stocks, bonds and mutual funds, or go for less traditional investment vehicles such as tax liens and real estate notes. In the self directed IRA LLC the custodian is usually not directed to make the transaction, and does not have the ability to limit the owner to certain kinds of investments. The account holder has checkbook control over the plan and the ability to make investment decisions immediately , even by just writing a check. For those individuals who are confident about their investment philosophy, the self directed IRA LLC offers the most control over their retirement money.