Self Directed IRA LLC Advantages Explained
I would like to use the money in my IRA for the purpose of purchasing real estate, and I’ve been told I can do it with a self-directed IRA LLC account. Is it possible? The answer is, yes it is …
The IRA can contribute all the cash or a portion of its cash into an LLC wholly owned by the IRA. The transfer of your IRA money as initial capitalization of the LLC does not constitute a disqualified transaction or a taxable event!
Since the self directed IRA owns the IRA LLC or IRA Company, the IRA funds can be directed to the IRA Company in exchange for member units or shares of the LLC. After funding, both not only can traditional investments be made, but also alternative investments such as real estate including foreign real estate, discounted notes, gold coins, and bullion may be purchased by the IRA-LLC.
A Key Point to Consider When Buy Real Estate with an IRA Owned LLC
When owning real estate inside an IRA, all expenses must be paid by the funds in the IRA-LLC account. If you pay out-of-pocket for such expenses as contractors, appraisers, plumbers, taxes or landscapers, then you can open your IRA up to penalties, fees, and taxes starting at the beginning of the year in which you made the mistake.
Assets consolidated under the LLC become the sole asset of the account holder’s self-directed IRA. Once your IRA LLC has been funded, your IRA statement from the custodian will simply reflect one asset, i.e., the LLC. If structured properly, your IRA LLC should not pay any transactional, asset or holding fees, and why should you should it? After all, you are truly self directed and you are the one cutting the checks and paying the bills directly with your IRA checkbook.
The management of a self-directed IRA is a skill the investor can learn. Checkbook control of your IRA is something that every savvy investor should consider if they don’t want to be limited to just the run-of-the-mill investments.
In order to set up your IRA LLC feel free to call the IRA LLC Partner at (877) 339-4559. The IRA LLC Partner will guide you step by step. They will help you complete all the appropriate paperwork to manage the IRA transfer as well provide you with the training to guide you and set you on the course to investment success.
