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Contact our Self-Directed Experts. (800) 395-5200 or Schedule A Call

Contact our Self-Directed Experts.
(800) 395-5200 or Schedule A Call

Contact our Self-Directed Experts. Schedule A Call or Leave A Message

Contact our Self-Directed Experts.
Schedule A Call or Leave a Message

Self Directed IRA Basics

Questions? Text us at (845) 253-9306.

Basics 2017-01-13T20:27:29-05:00

The Process

Here’s what happens when you set up a self-directed IRA:

  1. Broad starts the process by establishing a new IRA for you with one of our registered self-directed IRA custodians.
  2. You direct the transfer of your funds from your existing retirement account(s) into your new self-directed IRA. We’ll guide you through the process, but at no time do we have access to your funds.
  3. Broad establishes an LLC (Limited Liability Company) for your self-directed IRA, which will serve as your Self Directed investing platform. This LLC enables you to authorize all investment decisions. Each LLC is customized to conform to all rules and regulations governing self-directed IRA LLCs.
  4. The next step is to capitalize the LLC. Broad instructs the custodian to invest your IRA into the LLC by trading all of the member units of the LLC for the cash in your IRA. Your self-directed IRA is now the owner of the LLC.
  5. Upon receiving the capitalization check from the custodian, you open a checking account in the name of the LLC at the bank of your choice.
  6. Begin investing by simply writing a check.

Benefits

  • Freedom of Investment – you can invest your self-directed IRA in virtually any asset.
  • Freedom from Fees – because the self-directed IRA runs on a platform with checkbook control, you will not have to pay any transaction fees or asset based fees. Invest as much as you want, as often as you want, and retain your hard earned money for your retirement account.
  • Freedom of Time – with checkbook control, you can jump on investment opportunities the moment they arise. No longer will you have to linger at the hands of a slow moving custodian.

Restrictions

With a self-directed IRA you have maximum investment freedom, but there are two restrictions that you should keep in mind.

  1. Although your self-directed IRA can invest in almost everything (including real estate, gold, and private business), there are two categories which are off limits: life insurance and collectibles. (We know it hurts; Beanie Babies are really cute.)
  2. Unique to self-directed accounts is a law known as Prohibited Transactions. Simply said, it means that your self-directed IRA cannot be utilized for any personal benefit for any disqualified persons. Disqualified persons include the self-directed IRA account holder, any of his/her linear relatives, and any fiduciaries involved with the account.

Are you self employed? You should consider the Solo 401(k)!


Custodial or Checkbook Control Plan: Which is Best for You? We Offer Both.

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