February 2, 2023

Self Directed IRA Plans Put You in Control of Your Retirement Plans

Self Directed IRA facilitatorA self-directed individual retirement account is a way for people to control their own investments for their retirement portfolio and to diversify into non-traditional assets. A Self-Directed Plan offers investors the opportunity to invest in real estate, precious metals, and businesses and even provide private money loans to businesses or individuals. The real advantage being that all the returns on the investments grow tax-deferred, or in the case of Roth, tax-free in the retirement fund.

The primary benefit is the control the investor exercises over their retirement account. One way to achieve the most control is to establish an LLC where the IRA holder is the manager of the business with the ownership held by the trust or custodian. This is referred to as an IRA checkbook or checkbook IRA because there is a business checking account established for the LLC. This arrangement provides great flexibility for the investor, but with great flexibility comes the need for personal responsibility.

A Self Directed IRA Facilitator can help anyone who has traditional IRAs or 401ks set up a self-directed IRA. The self directed IRA Facilitator will provide the documents and guidance necessary to establish the trust account with a self-directed custodian. From there, the Self Directed IRA Facilitator will form the LLC for the IRA investment and enable the opening of a business checking account. No longer will the IRA be subject to delays and exorbitant transaction fees of a traditional custodial IRA or 401k.

There are several reasons why a self-directed IRA is worth setting up. People who have been working for years may have their life savings locked away in a retirement account. A self-directed account will allow that money to be invested in places they choose. This gives the person a chance to make a sizeable investment on the ground floor of a promising startup they strongly believe will prosper. Also, investing in real estate is an option that is possible under a Self-Directed Plan that isn’t possible with a traditional IRA.

Even though self-directed IRAs have more scope for investment, there are limits. Investors cannot co-mingle funds and cannot buy, sell or trade personal property to the IRA. Consult with your Self Directed IRA Facilitator, tax-attorney or accountant. Self-directed IRAs require proper guidance and once established, are a great asset for investors. Remember, no tax returns, no rollover problems. The owner is in control and can invest simply by writing a check. If you are an investor already having success in non-traditional assets, a self-directed IRA plan is a must. Invest in what you know, discover self-directed retirement options.