The Self-Directed Roth IRA Advantage
Tax-Free Investing
The primary advantage of using a Self-Directed Roth IRA LLC to make investments is that all income and gains associated with the Roth IRA investment grow tax-free and will not be subject to tax upon withdrawal or distribution. Unlike traditional IRAs, you aren’t typically not subject to tax upon taking Roth IRA distributions once you reach 59 1/2.
Investment Options
With the Self-Directed Roth IRA LLC, you can invest in any type of investment. This includes:
- Real estate
- Private business entities
- Tax liens
- Precious metals
- Commercial paper
And all of these investments are tax-free.
Diversification
With the Self-Directed Roth IRA LLC, you can invest in almost any type of investment, including real estate. This allows you to diversify and better protect your retirement portfolio.
Checkbook Control
With a Self-Directed Roth IRA LLC, you have even more advantages, including what’s called “checkbook control.” As manager of the Self-Directed IRA LLC you will have the ability to make IRA investments without seeking the consent of a custodian. Instead, all decisions are truly yours.
Access
With a Self-Directed Roth IRA LLC, you have direct access to your IRA funds. As a result, you can make an investment quickly and efficiently. There is no need to obtain approvals from your custodian. Furthermore, there are no time delays for approvals and you don’t have to pay review fees.
Speed
With a Self-Directed Roth IRA LLC, when you find an investment you want to make with your IRA funds, simply write a check. Or wire the funds straight from your Self-Directed Roth IRA LLC bank account to make the investment. The Self-Directed Roth IRA LLC allows you to eliminate IRA custodian delays. As a result, this enables you to act quickly when the right investment opportunity presents itself.
Lower fees
Another advantage to a Self-Directed Roth IRA LLC account is that you can save a lot of money on custodian fees. With the “checkbook control” Self-Directed Roth IRA LLC structure, you will not be required to seek custodian approval when making IRA investments allowing you to eliminate custodian transaction fees and account valuation fees.
Limited Liability
By using a Self-Directed Roth IRA LLC with “Checkbook Control”, your Roth IRA will benefit from the limited liability protection afforded by using an LLC. By using an LLC, all your Roth IRA assets outside the LLC are shielded from attack. This is especially important in the case of Roth 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 Roth IRA LLC with “Checkbook Control”, the Roth IRA holder’s Roth IRA will be protected for up to $1 million in the case of personal bankruptcy. In addition, most states will shield a Self-Directed Roth IRA from creditors attack against the Roth IRA holder outside of bankruptcy. Therefore, by using a Self-Directed Roth IRA LLC, the Roth IRA will be generally protected against creditor attack against the Roth IRA holder.
