If the ultimate in freedom and flexibility in retirement investing appeals to you, consider a Checkbook IRA account from IRA Advantage. The Checkbook IRA account allows you to make retirement investments when you want, simply by writing a check. We start by forming an IRA LLC. (This LLC is created with very specific language meeting the IRS and Department of Labor’s stringent requirements to ensure the integrity and tax-advantaged status of your IRA.)

After the LLC is created, the custodian funds a new bank account of which the LLC is the owner. The IRA beneficiary can be the manager of the LLC and the signer on the account. Just write a check or use a debit card to make the IRA’s next investment.

Among the many benefits of an IRA LLC (in addition to flexibility) are reduced transaction fees, liability protections, freedom from investment delays caused by the custodian, interest income, and the ability for the LLC to have multiple investors. Read More »

One of the most exciting things you can do with self-directed retirement investing is to invest in a small business. Maybe it’s a friend’s business that you’re interested in; maybe it’s something you always wanted to try your hand at. You can truly live your retirement, your way!

Sometimes known as a Rollover Business Startup, the process involves creating a new 401k and rolling over the assets of your existing retirement plan. Then the 401k invests in the new business C-Corporation; shares are owned by the 401k. You can operate the business yourself, and pay yourself a salary, all while growing your retirement investment. Read More »

An key consideration in self-directed retirement investing, especially when the investments are in real estate, is to be sure you have reserves to cover the unforeseen. It’s essential to plan ahead; in addition to having enough money to make the initial purchase, it’s crucial the IRA has enough money in reserve to cover the carrying cost of the investment. Since the IRA owns the property, the IRA must cover all the expenses the investment will incur.

Simply writing a personal check is the natural tendency for an IRA owner when an expense is incurred and there are no funds left in the IRA. This is a prohibited transaction, though in some “emergency” cases it may be allowed. IRA growth and the IRA owner’s ability to make contributions are the only truly legitimate sources for expenses when there are no reserves. Read More »

Precious metals are very popular with self-directed IRA investors. However, not all precious metals are qualifying IRA investments. For example, there are purity (or fineness) standards requiring gold to be 0.995 or better, silver 0.999 or better, platinum and palladium must be 0.9995 or better. Specific pieces can be tricky, American Eagle and Canadian Maple Leaf coins are OK, but proof versions of the US Buffalo coin are not.

Bars and rounds are acceptable if they meet fineness requirements and come from a NYMEX or COMEX approved source. Some specifically excluded pieces are: the Dutch Guilder, Mexican Peso, Belgian & French Francs, South African Kruggerand, British Sovereign, and Swiss or German Marks. IRA Advantage strongly suggests you consult with your metals dealer or tax advisor before investing IRA funds in precious metals.
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