with a Self-Directed Checkbook IRA.
What is a Checkbook IRA?
A checkbook IRA is a powerful investing tool that gives individuals checkbook control over their account by using a single-member limited liability company LLC ("IRA LLC") or a Grantor Trust ("IRA Trust") to invest. It is ideal if you need fast access to your funds to make it easier to invest in multiple assets, receive and deposit income, and pay bills or expenses for those investments.
Why utilize a Checkbook IRA?
With a properly established Checkbook IRA, individuals find more opportunities for retirement growth.
How the Checkbook IRA Works
The Checkbook IRA is a perfect solution for individuals that want greater control with fewer fees.
|Self-Directed IRA||vs.||Checkbook IRA|
|IRA Account at Digital Trust (Custodian)|
|Add funds via IRA/401k Rollover or Contributions|
|Annual custodial fee|
|Additional asset fees|
|Investing requires IRA Custodian sign off|
|Ability to transact immediately/on your own|
|LLC / Trust checking account|
|Additional Liability Protection|
The Checkbook IRA Timeline
Establishing a Checkbook IRA is a relatively straight-forward process. Account setup to funding can take as little as two weeks.
Choose the type of account that fits your needs (Traditional, Roth, etc.).
The entity is created listing your IRA as the Member/Grantor and you yourself as the Manager/Trustee. You'll setup an LLC/Trust Checking Account at a local bank.
Instruct your IRA custodian to send the funds from your IRA to the entity Checking Account.
With the IRA funds in the LLC/Trust Checking account, you will control all cash flow and investment direction on your own.