A self-directed IRA's ownership of an LLC, or as it’s also known, an ICO ("I"RA "Co"mpany), is a special purpose limited liability company, which is either fully or partially owned by an IRA (Individual Retirement Account). Since the self-directed IRA owns the ICO, IRA funds can be legally transferred to the ICO in exchange for member units, or shares of the ICO. After this funding, both traditional and nontraditional investments may be purchased by the ICO instead of directly in the IRA.
Self-Directed IRA LLC Benefits:
An ICO, also commonly referred to as a Checkbook IRA LLC, allows you to hold real estate or other non-traditional investments within checkbook IRAs. Very few IRA custodians permit direct ownership of real estate or other non-traditional investments in an IRA, so indirect investment through a self-directed IRA LLC is usually the only choice.
When the ICO sells real estate or other investments, the capital gains are deferred through your IRA, like any other IRA investment. The headaches of 1031 exchanges are never necessary. Ownership of the property in an ICO allows you, as manager, to have direct, hands-on control of an investment decision over ICO assets, including control of the checkbook. Custodian involvement and hassles are eliminated, regardless of whether the investments are in securities, real estate or other assets.
An ICO can use its IRA funding as a down payment for a real estate purchase, with the ICO financing or borrowing the balance. But an IRA cannot directly participate in such a financing arrangement. Since you control and handle all ICO transactions, the custodian for the IRA can be paid an inexpensive, flat fee.
Litigation threats which accompany investments like real estate are substantially reduced. This is done by isolating the investment inside the ICO, and away from the rest of your IRA funds and estate. An ICO continues to provide a deferral of income and gains inside the checkbook IRA.
Set up Process
- Setup an IRA with American Estate & Trust
- Create the LLC, so you can operate as the manager. Accuplan Benefits Services creates the LLC along with a very unique and special operating agreement
- Transfer your IRA funds to our custodian (Accuplan Benefits Services helps you do this)
- Set up the LLC checking account at a local bank
- Direct the IRA custodian, American Estate & Trust, to transfer money to the LLC in the form of purchasing membership units in the LLC
- You’re done. You can now direct investments from the LLC
What Can You Invest in?
- Real Estate
- Hard money lending
- Precious Metals (Gold, Silver, Platinum)
- Private placements or offerings (oil & gas, real estate, etc)
- Foreign Real Estate
- Funding a business
- Trust deeds
- And Much More!
What We Do to Help You
- Set up the LLC
- Filing of state articles
- Filing of Tax Identification Number with the IRS
- IRA prohibited transaction compliant operating agreement
- Set up and operating guide
- Banking authorizations for checking account
- Handling your rollover to our sister company and custodian, American Estate & Trust
- Unlimited consulting
The use of a qualified IRA custodian is required to complete this process. Accuplan Benefits Services uses the services of American Estate & Trust. The benefits to using American Estate & Trust and Accuplan are:
- Experience - We are dedicated to dealing with the ins and outs of self-directed IRA accounts
- Flexibility - We are focused on providing self-directed IRA account services that are tailored to the needs of the self-directed IRA account holder
- Seamless integration - Accuplan Benefits Services and American Estate & Trust are owned by the same principals with common support staff, so you will get a completely integrated, one-stop solution for your self-directed IRA needs
Additional ResourcesInvestment Ideas
Invest In Trust Deeds
With checkbook control, your IRA is truly in your hands. You’re now not only in total control of how your IRA functions, but how and when you choose to invest. Cut out the middleman, gain the freedom of choosing how you invest, and ask us how you can open your own IRA LLC today.