Many Self-Directed IRA investors are looking for greater control over their retirement savings. One way to achieve this is through a technique called ‘Checkbook Control.’ This allows you to move assets in and out of your IRA account as you wish, without having to go through the additional step of issuing a buy/sell order to your Self-Directed IRA custodian. But is Checkbook Control right for you? Let’s take a closer look.
What is Checkbook Control and How it Can Benefit You in a Self-Directed IRA
One of the main benefits of a Self-Directed IRA is that it allows you to have Checkbook Control over your retirement account. This means that you are able to make investment decisions and transactions without having to go through a third-party custodian. This can save you time and money, as well as give you more flexibility in how you manage your account.
In addition, Checkbook Control can help you to better diversify your investments, as you are not limited to the investment options offered by a custodian. This can provide you with greater potential for growth and protection from market volatility. Overall, Checkbook Control can be a valuable tool in helping you to reach your retirement goals.
How to Get Checkbook Control in a Self-Directed IRA
But the above still leaves one question: how do you incorporate it? The key is to use a Single Member LLC within an IRA—the IRA purchases this LLC (as the member). The control of that LLC’s bank account reverts to you or any individual that you designate to be the manager of the LLC, and voila—Checkbook Control.
To execute this plan, you’ll generally want to work with a Self-Directed IRA administration firm, which can help you establish the proper paperwork, take the appropriate steps, and generally oversee the transaction with full legitimacy.
The Benefits of Having Checkbook Control
As we established, a Self-Directed IRA account gives the account holder Checkbook Control over their retirement funds. This means that the account holder can write checks or make investments without having to go through a custodian. But what other benefits might you include? Having Checkbook Control gives the account holder a great deal of flexibility when it comes to managing their retirement funds.
They can use their Self-Directed IRA to invest in a wide variety of assets, including real estate, stocks, and bonds. They can also use their Self-Directed IRA to make direct investments in businesses. Checkbook Control gives self-directed investors the ability to make investment decisions quickly and without having to jump through hoops. This type of flexibility is one of the main reasons why Self-Directed IRA accounts are so popular. If you’re looking for a retirement account that will give you more control over your investment decisions, a Self-Directed IRA may be right for you.
Things to Keep in Mind when Choosing a Self-Directed IRA Custodian
When it comes to retirement planning, Self-Directed IRAs offer a unique set of benefits. However, before you can take advantage of these benefits, you need to choose a Self-Directed IRA Custodian. Here are a few things to keep in mind as you evaluate different Custodians:
First and foremost, you want to make sure that the Custodian is reputable and has experience managing Self-Directed IRAs. There are a lot of moving parts involved in Self-Directed IRAs, so you need to be confident that your Custodian knows what they’re doing.
Second, you’ll want to consider the fees associated with the Custodian. Self-Directed IRAs can be complex, so you don’t want to be nickel-and-dimed with high fees. Make sure to compare the fees charged by different Custodians before making a decision.