This is a tool that reduces the transaction fees of self- directed custodians. It’s also called “Checkbook IRA” or “Checkbook Control”. Step 1 is creating an account at a self-directed custodian and rolling over (or contributing to it). Then we will help you up a specialized LLC that your IRA will own. You do not own the LLC, your IRA does! While you can be the manager of this LLC, we advise that you have someone who is not a disqualified person be the manager. After setting up the LLC, it gets a bank account. Then you “direct” your custodian to “buy” this LLC (think of the LLC as an investment your IRA is making). Then, your custodian will transfer your IRA money to the LLC’s bank account. And now you have direct control over the money and can avoid the transaction fees (and possibly lower the custodian fees).




Lower fees!

Custodians charge transaction fees each and every you buy or sell an investment, collect rent or make a payment. Once you have an IRA, LLC there is no custodian to go through and there are NO transaction fees. Also, some custodians charge a yearly fee based on the number of assets your IRA owns. If you are going to own a number of rentals, those yearly fees go up! With an IRA, LLC that is the only asset, and the LLC can own as many assets as you want.

Faster transactions!

With a custodian, you have to fill out their paperwork, submit it, wait for them to process it, (pay the transaction fee) and then complete your investment. This can take a week, or longer if you don’t get the paperwork right. Again, with the IRA, LLC, there is no custodian to do the paperwork. Therefore, you can buy an investment as fast you are able to. This is critical when picking up those desirable investment opportunities.

Combine Accounts!

You can take your Roth IRA, your spouse’s Traditional IRA, an HSA or any other retirement account and combine those funds into the single IRA, LLC. This makes pooling money fast and efficient when you have small amounts in each account. It also reduces transactional paperwork since there is one LLC and not multiple accounts.

NOTE: Prohibited transactions and UBIT taxes are serious considerations when thinking about self-directing any retirement account. You should seek competent legal, tax and investment advice before proceeding. Nothing on the page, or website, is offered as legal, tax or investment advice. Breglio Law Office does NOT provide investment advice or opportunities.

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