Looking for a way to take more direct control of your retirement investments? Sick of the limited options a traditional brokerage offers you? Maybe you want more flexibility in your retirement. Maybe you want to choose from a broader range of assets. If that sounds like you, there’s an easy alternative: the Checkbook Control IRA in which you hold a Checkbook Control LLC.

If it sounds complicated, don’t be thrown off. In fact, a Checkbook Control LLC is much more straightforward than it sounds. Let’s answer some of the basic questions about this arrangement so you know whether it might work for you.

What is a Checkbook Control LLC?

You can use a Self-Directed IRA to house a Single Member LLC. That LLC has a checkbook. And since you’re the owner of the IRA which owns the LLC, this means that the control of this LLC’s checkbook reverts to you. A Single Member LLC then becomes, by nickname, a “Checkbook Control LLC.” You can think of it as a vehicle for investing in retirement using the full range of legal options and retirement assets available to you—all with the power and simplicity of writing a check.

For tax purposes, the LLC is a Single Member LLC, which does not require filing a separate tax return. This keeps things nice and simple for the IRA, while serving as a “pass-through” entity. In other words, it’s an LLC that allows you to have a checkbook without making your taxes overly complicated. The result is more freedom in investing.

Why Choose a Checkbook Control LLC Arrangement?

Why a Self-Directed IRA with a Checkbook Control LLC within it? There are a few reasons:

• A wider array of investment options gives you more freedom to choose what you want in your retirement portfolio. Sure, stocks and funds are great—and you can still invest in those. But if you also want to invest in real estate, precious metals, private companies, and more, a Self-Directed IRA is the way to go.
• More control. Other retirement accounts may require that you funnel every purchase through a custodian for every transaction. But with a Checkbook Control LLC, you have check-writing powers, which means you can make the investments for the LLC directly. You will have to be careful of sticking to the retirement rules, of course, but that’s a common theme: more freedom means more responsibility.
• Tax benefits. After all, the arrangement of using an IRA over an LLC is full of tax benefits, depending on what kind of IRA you choose. That will be up to the individual investor. For example, a Roth IRA can be beneficial because you can use it to invest post-tax money, meaning that you don’t have to pay additional taxes on the distributions of this money after hitting retirement age.

Overall, having an LLC within your IRA for check writing purposes means you get more freedom, more flexibility, and more control.

Where Do You Go From Here?

Interested in starting a Checkbook Control LLC? The advantage of this arrangement is that once you establish it, it’s low-maintenance and low-fee. Most of the work is upfront. To get started, you can check out our website on Checkbook Control IRAs. Or, more directly, you can kickstart the process with American IRA. Just reach out to us to find out more about how it works and what you can expect along the way. Our number is 866-7500-IRA. We look forward to hearing from you as you start a new retirement investing journey with more direct control for you!