Checkbook Control IRA LLC

Blue Diamond Documents

Did you know?

  • You can have a checking account that is linked to your retirement funds that you control.
  • Your retirement account is not limited to just stock market based investments.
  • You can invest your retirement funds into something you know and understand.
  • You can control all the assets in your retirement account.


Getting Checkbook Control of your IRA Funds:

1. Open a truly Self-Directed IRA with a Custodian that will allow you to invest your IRA money into a Limited Liability Company. You will also begin the process of moving your IRA funds to your new Custodian via a transfer or a rollover. This will not create a taxable event.

2. Determine in which state you want to file your LLC and fill out our simple one-page form.

3. We will take your information and draft the documents needed to file your LLC with the secretary of state.

4. Upon approval of the LLC, we will send your new operating agreement, the company tax ID number and your approval documents. You will need to provide these documents to your Self-Directed IRA Custodian.

5. Using one of your Custodian’s forms, you will notify your IRA Custodian that you want to invest your Self-Directed IRA into this newly formed LLC. Your Custodian will then send a check made payable to the newly formed LLC. You then take that check along and all of your LLC documents to a bank of your choice and open a business checking account.

6. Deposit the check your Custodian gave you into your LLC checking account.

    Expand & Control Your Investment Options with a Checkbook Control IRA LLC:

    Residential and commercial real estate | Private company investing | Lending | Gold bullion | Precious metals | Other alternative assets

    FAQ for Checkbook Control IRA LLC

    Here is a sample of some of the questions we get when talking about checkbook control. Hope you find this helpful.

    Why have I not heard of a Checkbook Control IRA LLC, or investing in alternative assets before?

    Even though we have always been allowed to invest in alternative investments and the Stock Market since the beginning of the IRA, stock market brokers have done a good job of convincing us that our only choices in our retirement account is Stocks, Mutual Funds CDs or Bonds. In actuality, the IRS never tells what we can invest in, only what we cannot. This list is very short.

    What are considered prohibited assets in an IRA?

    IRS Section 408 tells us that we should NOT invest in Life Insurance and Collectibles. These are the only two asset classes that the IRS has identified as prohibited. So, what is allowed, along with stocks, mutual funds, CD’s and bonds is real estate, promissory notes, private placements, gold bullion and silver bullion and the list goes on.

    Who is considered a prohibited person?

    The internal revenue code has identified who and what is considered a prohibited person, or prohibited entity. The list is as follows: You and your spouse, your children and your grandchildren, your parents and your grandparents and all their spouses. It also includes any business that any of those prohibited people own 50% or more of. So, what does this mean? It means that our IRA cannot buy, sell, exchange or lease with any of these people. Your IRA can buy real estate, but you cannot live in that property because you are considered a prohibited person.

    Why would I want to have checkbook control of my IRA funds?

    Most people feel like their retirement accounts are out of control. For me, the number one reason to get checkbook control of my retirement funds is to have total control of the assets myself. Secondly, when you have checkbook control of your retirement funds you save money in fees imposed by your IRA Custodian. Most Custodians charge your IRA for every asset you have. When you have checkbook control of your IRA funds, your Custodian only sees one asset, an LLC. Therefore, your Custodian only charges your IRA for that one asset. However, the LLC can own multiple assets, but the Custodian only sees one asset. Your Custodian will also charge you transaction fees every time you buy or sell an asset. When you have checkbook control of your retirement funds, your Custodian does not make the transactions for you, so therefore you do not incur those fees.

    What is a truly Self-Directed IRA?

    The only difference between a Self-Directed IRA and an IRA at your local Broker is who is in control of the account. If you have a truly Self-Directed IRA, then you are in control of the assets and the direction your IRA funds are invested.

    What are your fees to get checkbook control?

    Our fees vary based on each state filing fees. The average cost ranges from $400.00 to $900.00. This is a one-time fee to Blue Diamond Documents.

    What states do you provide this service in?

    We file LLCs in all 50 states.

    Is Blue Diamond Documents a Custodian?

    We are not a Custodian; however, we work with several Custodians. Call us for our list of Custodians that will allow you to have checkbook control of your IRA.

    When I have checkbook control how do I title the investments I choose?

    You always want to title your LLC investments in the name of the LLC. Never in your own name. You are the manager of LLC not the owner of the LLC, the IRA owns the LLC.

    Do I have to send all the income from the LLC back to the Custodian?

    No, you can let your LLC checking account build up from your LLC income and then you can reinvest it however you see fit. The only time you would need to send money back to the Custodian is if you need a distribution or you are dissolving the LLC.