IRA LLC
An IRA Retirement LLC is a specialized self-directed IRA account. These IRAs are structured in such a way that the account holder has “checkbook control” of the account. The trustee doesn’t have to be directed to make transactions on behalf of the account owner; the account owner can make decisions on the fly, even by writing a check.Of course the funds are used in a retirement account, so usage of the funds has to follow the IRS rules established for other types of IRAs. The IRA LLCfor retirement is truly a self-directed IRA account.
Permalink Submitted by Jose Morales on Thu, 2014-01-02 17:15
Is the company you work for an IRS approved non-bank custodian or do you use a bank to act as your nominal custodian?
Permalink Submitted by chris drakeley on Thu, 2014-01-02 20:15
How does this LLC report income ? For example, the IRA LLC buys a house then flips it. There will be a closing statement and a 1099-Misc will issued to the LLC, then what kind of tax return is theLLC going to file for the year to report that income ?
Permalink Submitted by Sabiha Sultana on Fri, 2014-01-03 04:38
I suggest the IRA LLC method, this will allow an investor to have checkbook control and more flexibility than they would making transactions directly through a custodian. Of course you always need to utilize a custodian when you have a self-directed IRA. Most self-directed IRA custodians who will hold an IRA LLC are trust companies, which meets the definition of a Bank under section 408.
Permalink Submitted by Jose Morales on Fri, 2014-01-03 16:21
I am asking specifically about the company that you work for that you are promoting here. Is your company an IRA Custodian? And please don’t answer with “we are an administrator.” Are you an IRA Custodian, yes or no. If no, who is the IRA Custodian if someone were to open a self directed IRA with you? If it is a trust company that meets the definition of a bank, please tell me the name of this trust company and which regulatory agency it reports to.
Permalink Submitted by Josh Moore on Fri, 2014-01-03 22:39
The company being promoted here is New Standard IRA, which is an IRA LLC facilitator, not a custodian or third party administrator (TPA). The checkbook IRA method essentially emancipates the individual from in house custodial restrictions, bureacracies and nickel and dime transaction fees, adding flexibility, security and simplicity to your self-directed IRA.There are a several custodians or TPAs that you could use to hold a checkbook IRA, we have certainly used more than a handful, the best one being IRA Services Trust Company. IRA Services is a non-depository trust company regulated by the State of South Dakota’s Division of Banking where they maintain their trust charter, they are also a member of the Retirement Industry Trust Association (RITA). I have personally worked with IRA Services for about 9 years and recommend them (above others i.e. Equity Trust Company, Pensco, Entrust, First Trust Co. of Onega..) as a custodian to hold your IRA LLC. They act as a passive custodian and simply approve or disapprove investments/transactions their IRA participants want to make.New Standard IRA is an advisor that goes above and beyond what passive custodians offer. We have no fee sharing arrangement or affiliation with any given IRA custodian.
Permalink Submitted by Sabiha Sultana on Fri, 2014-01-03 04:39
It depends on if the LLC is a single member or multi-member. Single member LLCs are true self-directed IRAs because the DOL basically takes the position that an entity wholly owned by a plan essentially is the plan and not a seperate entity in question. Also, single member IRA LLCs don’t typically file a tax return because they are disregarded entities. Instead, the member would file the return, in this situation the member is an IRA and the custodian for the IRA files a 5498.For more information on Self Directed IRA LLCs you can visit http://www.irallc123.com