This flow chart provides a visual representation of how our Checkbook IRA is constructed.
The Checkbook IRA process, or the Self Directed IRA process as it is also known, involves a transfer from one or more existing retirement plans to a temporary Self Directed IRA Custodian.
This custodial IRA then makes an investment into the special-purpose, IRS compliant LLC we establish. This creates an “investment holding company” owned by your IRA(s) and managed by you.
The LLC will have a business checking account, which you control. It is from this LLC bank account that you will pay investment expenses and into which investment returns are received.
You are able to participate in wide range of allowable investment transactions directly, without the delays and fees associated with investing directly from a custodial IRA account.
As your IRA LLC funds grow, you can continue to invest from this platform.
Additional contributions can be made to the Self Directed IRA Custodian and invested into the IRA LLC. Distributions are initiated via liquidations of LLC shares to the Custodian.
