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You should consider a self directed IRA LLC if you want complete flexibility when you’re looking at your retirement options. You can make all the decisions associated with your investments and retirement plan yourself when thinking about this form of individual retirement account, commonly known as the IRA. Many people look at this as an exciting and potentially very beneficial way to control their own retirement accounts. These highly flexible options can be used for a wide range of potential investments, including real estate purchases (domestic or international), private equity, partnerships, franchises, mortgages, small businesses, tax liens and so on. The self-directed IRA offers you an almost unlimited range of solutions, creatively.

Any qualified retirement account can be rolled into a self-directed IRA, including a traditional IRA, Roth IRA, 401(k), 403(b) and so on. The funding from these introduced accounts is injected into the new plan and then shares are purchased in a custom made limited liability company, LLC. This process allows you to gain complete control over your retirement account investments — without incurring penalties, transaction fees or early distribution taxes.

If you engage in this type of creative formatting, the potentially punitive asset-based and transactional fees that are associated with self directed IRA custodians can be avoided, and this can add up to hundreds or thousands of dollars in a given year. Not only that, but you will also be better positioned to take advantage of time-sensitive investment opportunities, such as foreclosure auctions. With a self-directed IRA LLC, you don’t have to deal with the complex and time-consuming restrictions associated with gaining custodial approval.

In normal circumstances, the IRA dictates that you need a custodian to oversee your matters. If a rental property is involved, as an example, rent checks must be forwarded to the IRA custodian on a monthly basis. From time to time, repairs would be necessary, but the custodian must issue approval before you can move forward. As you might expect, a fee is incurred every time a custodian is consulted. Now, in the case of a self-directed IRA, when using an LLC structure all the custodian does is to invest funds into the LLC at the outset. The LLC manager (you) then takes care of all the day-to-day needs of the account. You can collect and deposit the rent checks, arrange for repairs to the property, and write a check for related expenses on-the-spot. With a self-directed IRA LLC, you are not held hostage — you are in control.

We already determined that there are a potentially unlimited number of investment options available when you consider a self directed IRA LLC. While that is true, there are a couple things you cannot invest in. The Internal Revenue Service (IRS), only points out two things that you cannot invest in with these self-directed IRA accounts, and they are life insurance contracts and collectibles. Normally, collectibles refer to works of art or jewelry. But this category can also extend to silver or gold coins, in certain instances. When coins are disqualified, they typically are valued more from their “collectible” position, rather than the actual silver or gold content, thus categorizing them as collectible.

For individuals seeking investment options with more security, and looking for life outside of the stock market, there is no better structure than a self-directed IRA LLC. Self-directed IRA programs allow an individual to build a truly diversified portfolio and to have day-by-day, direct control over their investments.

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