Checkbook IRAs, IRA-LLCs & IRA-Trusts that provide “checkbook control,” require a Self-Directed IRA custodian according to Section 408 the Tax Code. In contrast, Solo 401K Plans & QRPs (Qualified Retirement Plans) do not need a financial institution custodian. Following is a comprehensive and hyperlinked list of SDIRA custodians.
- Not all trust companies listed below are checkbook-control friendly.
- ReSure is not endorsing any of the below listed financial institutions.
- ReSure has extensive insight into the pricing, service levels, and business practices of SDIRA institutions, but those fall outside the scope of this post.
- SDIRA should not be confused with QRP or 401k.
What is a Self-Directed IRA?
A Self-Directed IRA is an IRA that conforms to the limitations and flexibility outlined in tax law. Unlike “traditional” IRAs offered by brokerages that impose restrictions on account holders’ freedom to invest, self-directed retirement plans are designed to give you the investment freedom permitted by law. Self Directed IRA is often abbreviated to: SDIRA.
What are the advantages of a Self-Directed IRA With Checkbook Control?
Self-directing with checkbook control makes SDIRA investing as simple as writing a check from a business bank account. Without checkbook control, every transaction on behalf of your SDIRA must be processed by the SDIRA custodian, which adds fees, paperwork, and time to the investment process.
Checkbook–Control IRAs are governed by Sections 408 and 4975 of the Tax Code – just like all “regular IRAs” and SDIRAs. Using a Checkbook IRA-LLC enables opportunistic and cost-effective investment in assets that you choose.
What are some popular Self-Directed IRA investments?
- Real Estate
- Promissory Notes & Mortgages
- Private Lending
- Hard Money Lending
- Consumer Lending
- Crowdfunding Investments
- Private Placements
- Equipment Financing
- Cannabis & Marijuana
- Private Stock
- Precious Metals
- Foreign Currency Exchange (FOREX)
- Oil and gas rights
- Tax Certificates
- Digital Currency
- Life Settlements
When you work with ReSure LLC, you’ll benefit from our connections, relationships, and insider knowledge of the SDIRA industry. There are “little” things that make a big difference that we look forward to assisting you with. You will pay less and get far better results!