Checkbook Control · Roth
Roth Checkbook IRA
A self-directed Roth IRA wrapped in an LLC you manage. Tax-free growth inside the wrapper, signing authority on every deal.
Why a Roth Checkbook IRA
Roth Tax Treatment, Self-Directed Reach.
Roth growth without the brokerage-only menu, and the speed of writing checks from your own account.
Tax-Free Growth
Earnings inside the Roth wrapper stay outside federal income tax. Qualified distributions in retirement are tax-free.
Signing Authority
Write checks straight from the LLC’s bank account. Close deals without waiting on per-transaction custodial sign-off.
No Lifetime RMDs
Roth IRAs have no required minimum distributions for the original owner. Keep compounding for as long as you choose.
Alternative Asset Menu
Real estate, precious metals, private notes, private companies, tax liens, and more — all held by the LLC the Roth IRA owns.
What it is
A Roth IRA That Owns an LLC.
A Roth checkbook IRA, also called a self-directed Roth IRA LLC, is a retirement structure that combines a Roth IRA with a limited liability company. The Roth IRA owns 100% of the LLC. You serve as the non-compensated manager, with signing authority on the LLC’s bank account.
Earnings stay inside the Roth wrapper and compound tax-free. Qualified distributions in retirement are tax-free. The LLC layer expands what the Roth can hold — real estate, private notes, private equity, precious metals, tax liens — and lets you transact on the timeline the deal requires, not the custodian’s queue.
Compared to a conventional Roth
How a Roth Checkbook IRA Is Different.
The Roth tax treatment is the same. What changes is who pulls the trigger on each investment, what the IRA is allowed to hold, and how much administrative work sits on you.
Control
With a conventional Roth IRA, the custodian or brokerage approves each transaction. With a checkbook Roth, you direct every deal as the non-compensated manager of the LLC.
Investment Options
Conventional Roth IRAs are typically limited to stocks, bonds, mutual funds, and ETFs. A checkbook Roth holds the same menu plus alternative assets — real estate, metals, private equity, private notes, tax liens.
Administrative Requirements
A checkbook Roth adds state LLC filings, an EIN, a specialized operating agreement, and a separate business checking account. You also handle recordkeeping for LLC-owned assets.
How to set up
Setting Up Your Roth Checkbook IRA.
As a full-service self-directed IRA administrator, we set up the Roth IRA, the LLC, and the operating agreement together. Typical timeline is one to two weeks.
Open the self-directed Roth IRA
Set up the Roth IRA with Accuplan, or transfer funds in from an existing Roth IRA or qualified rollover source.
Form the LLC
Our legal team drafts the operating agreement with IRA-specific language, files the Articles of Organization in your state, and obtains the EIN from the IRS.
Open the business checking account
We’ll help you take the LLC documents to the bank and open a business checking account titled to the LLC.
Fund the LLC
Direct the custodian to wire your Roth IRA funds into the LLC’s checking account. The Roth IRA owns 100% of the LLC.
Invest from the checkbook
Acting as the non-compensated manager, write checks from the LLC to acquire investments. Income and proceeds flow back to the LLC checking account, not to you personally.
Roth essentials
Contribution Limits and Roth Rules.
The LLC layer does not change the Roth IRA contribution rules. The wrapper still follows the standard Roth caps, income limits, and beneficiary rules.
Contribution limits
For 2026, contribute up to $7,500 if under 50, or $8,600 at age 50 and older (includes the $1,100 catch-up). The cap is the combined total across all your IRAs, Roth and Traditional.
Income limits
Direct Roth contributions phase out at higher incomes. See the Roth IRA limits table for the 2026 MAGI thresholds and the backdoor Roth option for high earners.
No lifetime RMDs
Original Roth IRA owners are not required to take distributions during their lifetime. The wrapper can keep compounding indefinitely.
Beneficiary rules
Qualified distributions to beneficiaries remain tax-free, but most non-spouse beneficiaries must empty the account within 10 years of inheriting under the SECURE Act.
Frequently asked
Roth Checkbook IRA FAQs.
Can I manage my own Roth IRA?
With a Roth checkbook IRA, yes. The LLC structure gives you signing authority over the account. You direct investments and complete transactions without waiting on the custodian to approve each one.
What is the difference between a self-directed Roth IRA and a Roth IRA LLC?
A self-directed Roth IRA holds alternative assets directly, with the custodian processing each transaction. A Roth IRA LLC adds a wholly-owned LLC layer between the IRA and the investments. You manage the LLC, write checks from its business account, and close deals on your timeline. Both arrangements use a self-directed Roth IRA at the top of the structure.
What are the pros and cons of a self-directed Roth IRA?
The upside is broader investment options and tax-free growth on alternatives. Real estate rent, private-note interest, and gains on sale all compound inside the Roth and come out tax-free in retirement, when qualified. The downside is that you carry more responsibility for compliance, recordkeeping, and avoiding prohibited transactions. A checkbook LLC adds annual state filings and a separate business bank account on top of that.
What are prohibited transactions in a Roth checkbook IRA?
The IRS prohibits self-dealing transactions with disqualified persons. Under IRC §4975(e)(6), the family side of that list covers your spouse, your ancestors, your lineal descendants, and any spouse of a lineal descendant. Siblings, aunts, uncles, and cousins are not disqualified by family relationship. Self-dealing transactions benefit you or a disqualified person directly. Examples include borrowing from the LLC, selling property to it, or using LLC-owned real estate personally.
If the LLC owns a rental property, you and your family cannot live in it, vacation in it, or perform maintenance on it. The IRS also explicitly prohibits certain investments, including life insurance policies and most collectibles (alcoholic beverages, antiques, artwork, gems, rugs, stamps).
Note on metals and coins. IRC §408(m)(3) carves out U.S.-minted gold, silver, platinum, and palladium coins, plus bullion meeting the IRS fineness requirements, when held by the trustee or custodian. Other coins and most other metals remain prohibited.
What happens if you violate the rules. The consequence depends on who caused the prohibited transaction.
- If you as the IRA owner cause the violation, IRC §408(e)(2) treats the Roth as ceasing to be an IRA on the first day of that year. The full account value is deemed distributed, and the earnings portion becomes taxable plus a 10% early-withdrawal penalty if you are under 59½.
- If another disqualified person causes the violation, IRC §4975 applies a 15% excise tax on the amount involved, with an additional 100% tax if the transaction is not corrected within the IRS window.
Are checkbook IRAs legal?
Yes. The Tax Court approved the structure in Swanson v. Commissioner, 106 T.C. 76 (1996), and the IRS reaffirmed the conclusion in Field Service Advisory FSA 200128011 (2001). FSAs are not precedential, but the position has held in practice for two decades. You still have to comply with IRS rules to avoid taxes and penalties. We help you set up the LLC properly and file the paperwork in your state.
How does UBIT apply to a Roth checkbook IRA?
Most Roth checkbook income — interest on private notes, dividends, rental income, gains on sale — is excluded from unrelated business income tax under IRC §512(b). Two situations flip that. First, if the LLC borrows money to acquire an investment (a non-recourse mortgage on a rental, for example), the income attributable to the financed share is unrelated debt-financed income (UDFI) and is taxed even inside the Roth. Second, if the LLC operates an active business — high-volume foreclose-and-flip, short-term hotel-style rentals with services — the active income is subject to UBIT regardless of the Roth wrapper.
What are my responsibilities as the LLC manager?
You serve as the non-compensated manager of the LLC. That means you direct investments, sign documents, write checks, and keep records of every transaction. The LLC is a single-member LLC owned 100% by the Roth IRA, so its income and expenses pass through to the IRA. You are responsible for filing any required annual reports with your state, keeping the LLC in good standing, and reporting any taxable income (such as UBIT) at the LLC level.