The Self-Directed IRA LLC is a great account for IRA holders who want investment control and freedom. What are the advantages of a Self-Directed IRA LLC? There are multiple benefits to establishing a Self-Directed IRA LLC. Below, you will find the most important advantages of a Self-Directed IRA/LLC.
Read More: What is a Self-Directed IRA LLC?
Tax Advantages
With the Self-Directed IRA LLC, you have all the tax advantages of the Traditional IRA, as well as tax deferral and tax-free gains (for a Roth account). All income and gains that your IRA investment generates will flow back to your IRA, tax-free.
By using a Self-Directed IRA to make investments, the IRA owner is able to defer taxes on any investment returns. As a result, this allows the IRA owner to benefit from tax-free growth. In the case of tax-deferral, instead of paying tax on the Self-Directed IRA returns of an investment, tax is paid at a later date when a distribution is taken. Therefore, the investment can now grow tax-free without interruption. Around the time you take a distribution, you will likely be in a lower tax-bracket and can keep more of the funds you earned over the years.
Investment Options
With the Self-Directed IRA LLC, you can invest in almost any type of investment. The Internal Revenue Code doesn’t say what you can invest in, only the investments you cannot make, which are few. Investments you can make with a Self-Directed IRA LLC includes real estate, private business entities, tax liens, precious metals and cryptocurrency, all tax-free!
Learn More: What Are Alternative Assets?
Diversification
Most financial advisors will stress to you the importance of investment diversification. With a Traditional IRA, although you have the liberty of investing in different asset classes, such as stocks and hedge funds, that only allows so much diversification, as the characteristics of the investments are very similar. With the Self-Directed IRA LLC, real estate, cryptocurrency, precious metals and even sports gambling (if it is legal within your state). The characteristics of each investment is very dissimilar, therefore offers greater retirement portfolio success and protection.
Read More: Self-Directed IRA Investments
“Checkbook Control”
With an IRA LLC, you have one major Self-Directed LLC advantage: “Checkbook Control.” With checkbook control, you act as manager of the Self-Directed IRA LLC, and you will have the ability to make IRA investments without seeking the consent of a custodian. This eliminates custodial fees and delays. It also allows you to make an investment as quickly and easily as writing a check or wiring the funds from your LLC bank account. With checkbook control, all decisions are truly yours.
Greater Access
With a Self-Directed IRA LLC, you will have direct access to your IRA funds. Because of this, you can now make an investment quickly and efficiently. There is no need to obtain approvals from your custodian or deal with time delays in awaiting approval from your custodian or pay any review fees.
Speed
With a Self-Directed IRA LLC, when you find an investment that you want to make with your IRA funds, you have three easy options. You can simply write a check and the money will be removed from your IRA LLC bank. You can also wire the funds straight from your Self-Directed IRA LLC bank account. Finally, you can use the free IRA Financial app, which allows you to establish your account and make investments. The Self-Directed IRA LLC allows you to eliminate the delays that occur with an IRA custodian, enabling you to act quickly with any investment opportunity.
Lower fees
Another advantage to a Self-Directed IRA LLC account is that you can save a lot of money on custodian fees. With the “checkbook control” Self-Directed IRA LLC structure, you don’t have to seek custodian investments when making IRA investments. So, this eliminates custodian transaction fees and account valuation fees.
Limited Liability
By using a Self-Directed IRA LLC with “Checkbook Control”, your IRA will benefit from the limited liability protection when using an LLC. By using an LLC, all of your IRA assets held outside the LLC will be shielded from attack. This is especially important in the case of IRA real estate investments where many state statutes impose an extended statute of limitation for claims arising from defects in the design or construction of improvements to real estate.
Asset & Creditor Protection
By using a Self-Directed IRA LLC with “Checkbook Control”, the IRA holder’s IRA will be protected for up to $1 million in the case of personal bankruptcy. In addition, most states will shield a Self-Directed IRA from creditors’ attack against the IRA holder outside of bankruptcy. Therefore, a Self-Directed IRA LLC can often protect the IRA from creditor attack against the IRA holder.
What to Read Next:
Traditional IRA vs. Self-Directed IRA
What is Check Book Control- Self Directed IRA?
Real Estate Investing with a Self-Directed IRA
What is Checkbook Control Self-Directed IRA?
Get in Touch
Learn more about the Self-Directed IRA LLC advantage. Contact IRA Financial directly at 800-472-0646 or fill out the form to speak with a specialist.
