Building Retirement Wealth Your Way: Advantages of a Checkbook IRA

Key Points 

• With a Self-Directed Checkbook IRA, you can invest in alternative assets without the need for a custodian for your day-to-day transactions.
• There are two types of Checkbook IRAs: an IRA LLC and an IRA Trust.
• It’s easy to open and manage a Checkbook IRA with Broad Financial.

Are you looking for a way to invest in alternative assets in real-time, without the added cost of transaction fees? If so, a Checkbook IRA from Broad Financial should be on your radar. With a Checkbook IRA, you can enjoy the power of checkbook control and invest in alternative assets directly, without the need for a custodian for everyday transactions. You’ll have the freedom to invest in what you want, when you want.

Self-Directed IRA vs. Checkbook IRA

A Self-Directed IRA (SDIRA) is a retirement account that allows you to invest in alternative assets beyond Wall Street products. Any time you want to perform a transaction, you’ll fill out and submit a form authorizing your Self-Directed IRA custodian to send your IRA funds directly to your investment on your behalf. 

On the other hand, a Checkbook IRA is a type of Self-Directed IRA that allows you to perform transactions relating to your investment on your time. With a Checkbook IRA, once you identify an alternative asset that interests you, you can simply write a check or send a wire from your Checkbook IRA’s designated checking account.

Types of Checkbook IRAs: IRA LLC vs. IRA Trust

Broad is pleased to offer two types of Checkbook IRAs to meet the needs and preferences of various investors.

IRA LLC

One option investors may consider is the IRA LLC. An IRA LLC provides the diversification of a Self-Directed IRA with the added benefit of real-time access to IRA funds. With this type of Checkbook IRA, you’ll set up a specialized LLC for your IRA that conforms to all relevant ERISA regulations, followed by a dedicated IRA LLC checking account.

IRA Trust

The other option is an IRA Trust. Just like an IRA LLC, an IRA Trust allows you to access your IRA funds in real-time. However, an IRA Trust is set up by creating a trust for your IRA along with a designated IRA Trust checking account.

The Similarities Between an IRA LLC and an IRA Trust

There are several similarities between IRA LLCs and IRA Trusts:

• These account types are best for transaction-heavy investments, such as a rental property or a fix-and-flip.
• With both of these accounts, you place everyday transactions through a designated IRA LLC/Trust checking account.
• Both account types are available in all 50 states.
• Both accounts allow you to avoid transaction fees normally associated with IRAs.

The Differences Between an IRA LLC and an IRA Trust

Several distinctions exist between IRA LLCs and IRA Trusts:

• IRA LLCs are recognized in most countries if you're interested in foreign investments, whereas IRA Trusts are not as widely known.
• An IRA LLC offers multi-member investing, which IRA Trusts do not.
• While IRA Trusts do offer certain levels of liability protection, IRA LLCs have greater liability protection.
• Setting up an IRA Trust is faster and less expensive than an IRA LLC.
• IRA Trusts tend to have less reporting requirements than IRA LLCs.
• IRA Trusts do not have the additional costs of LLC state fees that IRA LLCs typically incur.

3 C's of a Checkbook IRA: Why Consider Investing with Checkbook Control?

With Broad Financial’s Checkbook IRA, you’ll enjoy the 3 C’s. which include:

Control

You gain direct control of all your investment decisions. There’s no need to fill out a form or wait for your Self-Directed IRA custodian to process your day-to-day investment transactions. You are truly in the driver’s seat of your self-directed investing!

Cut Costs

Because you have the freedom to make your everyday transactions, you avoid the transaction fees that are normally associated with Self-Directed IRAs. In turn, you get to enjoy more money for your investments.

Choice

You may invest in just about any type of alternative asset you can think of with a Checkbook IRA. Some popular examples include real estate, cryptocurrencies, private placements, and promissory notes.

How to Invest with a Checkbook IRA

Ready to Start Investing in Your Future with a Checkbook IRA?

Schedule a free strategy session with a Broad Financial Self-Directed Directed IRA Specialist. We can answer your questions to help you determine which Checkbook IRA is right for you. Today’s the day for you to gain control of your investment ideas with one of Broad’s Checkbook IRAs!

Schedule a Free Strategy Session