THE BOTTOM LINE

What most people are referring to when using the term “Checkbook IRA” is an investment platform that is structured so that a retirement investor has more direct control of the funds.  In fact, by simply writing a check, an investment can be made.

Legal Entity + Bank Account = Checkbook IRA

A Checkbook IRA plan may also be referred to as a Self Directed IRA LLC or a Real Estate IRA. In each case, a legal entity is established that is owned by the IRA account and managed by the IRA account holder. The LLC opens a bank account from which to engage in investment activities – hence the term “Checkbook IRA”.

While the structure is a bit different, a Solo 401(k) also eliminates the need for a custodian and provides full checkbook control to the investor.

Checkbook IRA Offers Checkbook Control

Having “checkbook control” with a Self Directed IRA has distinct advantages over having funds deposited with a self directed IRA custodian.  Many of the most profitable investments such as foreclosure properties and tax liens require immediate action.  The 2-3 day investment review period with a custodian virtually guarantees lost opportunities.

Other advantages of the Checkbook Control IRA include asset protection, the ability to more easily partner with others in structured investments, and greatly simplified escrow transactions.

Allowable Investments

When the legal structure is in place, and the bank account established, the account holder, acting on behalf of the IRA, may invest into anything allowed by law.  This includes practically everything except collectibles (like art, jewelry, etc) and life insurance.

Here’s a partial list of allowable investments: All Investment Real Estate Types, Trust Deeds & Mortgages, Tax Liens & Certificates, Equipment Leasing, Private Notes & Business Loans, Limited Liability Companies (LLC), Limited Partnerships, Stock of Private Companies, Receivables and Factoring, Public Stocks & Mutual Funds, Treasury & Municipal Bonds, FOREX Trading Accounts, Options & Futures, and much, much more…

Custodial Costs Eliminated or Reduced

By moving the funds into a Checkbook IRA, custodial costs are reduced to a minimum.  Like all other banking and financial institutions, custodians earn fees on every transaction that impacts the account.

Every time a bill is paid, the account is debited.  Many self directed IRA custodians also charge a percentage rate on the asset value in the accounts.  All these fees can significantly reduce the return on investment. When setting up a Checkbook IRA, Safeguard Financial utilizes a custodian that charges a very low annual fee and provides excellent customer service.

3 Steps To Gaining Checkbook Control

STEP 1: A Self Directed IRA account is established in preparation of funds being transferred from existing IRA accounts or from ex-employer retirement plans such as a 401(k), 403(b), etc.
STEP 2: A Limited Liability Company (LLC) is formed with the IRA account holder designated as Manager.
STEP 3: The Manager directs all, or a portion, of the retirement funds into the LLC bank account.

Prompt Service & Cost Effective

You can expect the process to set up a Checkbook IRA to take about 30 days. If your current custodian is immediately responsive in releasing your funds, it will take even less time.  Everything can be handled by phone, email, fax, express or regular mail.

 Additionally, you’ll find that our fee for this service is up to 40% less than other companies that perform the same or similar services.

Your Next Step

For immediate analysis of your situation and the best strategy for your investment interests, call us today at 877-229-9763.

Plan Structure

Click on the image at left to view a diagram of the Checkbook IRA plan structure. For more information about all of our self directed IRA plans and how our turnkey setup process works, please view the How our Process Works page.