You might have heard of a Checkbook Control IRA. This is an arrangement in which a retirement investor keeps an LLC within a Self-Directed IRA, which makes it possible to write checks from that LLC for convenient retirement investing. It all sounds simple enough. But what exactly makes an IRA “self-directed,” and how should you expect to manage one if you want to create this Checkbook Control scenario? Let’s take a deeper dive into what “self-directed” means in this case—and how you can self-direct your own retirement for a similar arrangement.

Defining the Self-Directed IRA

When we talk about a Self-Directed IRA, we’re referring to a retirement account that gives you the freedom to invest in a broader range of assets than a traditional brokerage might allow you. In most IRAs, your investments are limited to stocks, bonds, and mutual funds. That’s the standard. But with a Self-Directed IRA, you’re opening the door to opportunities like real estate, private equity, precious metals, and yes, even your own Checkbook Control LLC.

So, what puts the “self-directed” in a Self-Directed IRA? Quite simply, it’s the control you gain over your investments. Rather than relying on a broker or custodian to manage and invest your funds in traditional options, you’ll take hand of the reins. You make the decisions on where to place your money. And if you want to, you can put that into an LLC that your IRA owns—provided you adhere to the IRS rules for doing so.

The “self-directed” aspect also means you’re responsible for understanding the rules that govern these investments. You need to avoid prohibited transactions, ensure your investments comply with IRS regulations, and follow the rules. A Self-Directed IRA administration firm can help here, but they can only do so much. You also have to take some responsibility yourself. This is where Checkbook Control LLCs come into play, offering a streamlined way to manage your investments hands-on.

Checkbook Control: The Key to New Levels of Flexibility

A Self-Directed IRA with Checkbook Control takes the concept of “self-direction” even further by offering a more flexible way to manage your retirement investments. Typically, a Self-Directed IRA requires you to submit paperwork to the custodian each time you want to make a new investment. With Checkbook Control, you establish an LLC owned by your IRA. As the manager of that LLC, you gain the ability to write checks directly for investments. See an investment you like? You can potentially write a check from the LLC and get the process started immediately.

Imagine you come across a promising real estate deal, for example. The problem? The window of opportunity is short. In a traditional Self-Directed IRA, you would need to go through your custodian, which could take time. With a Checkbook Control IRA LLC, you could write a check immediately from the LLC’s bank account, potentially securing the deal in a much shorter timeframe. This quick-twitch response is what makes Checkbook Control a popular strategy for investors who want more autonomy with how they invest.

Is It Time for You to Consider a Self-Directed IRA?

Want more freedom? More control? More potential investments you can keep within a retirement account? The Self-Directed IRA LLC is one of the most powerful ways to do it. If you’re a savvy investor ready to take full control of your retirement future, a Self-Directed IRA LLC might be the right vehicle to drive your wealth-building efforts in the years ahead. But you can always learn more. We recommend reaching out to us here at American IRA by dialing our number at 866-7500-IRA to hear all about it.