Many people have never heard of self-directed IRAs. The few that have are usually only familiar with one type: a custodial self-directed IRA. In this model, a third party (the “custodian”) holds your cash and assets, and keeps control over them. The companies offering these kinds of IRAs typically make their money by charging asset-based fees and/or transaction fees. For the client, these fees can add up very quickly.
A Checkbook Self-Directed IRA (also known as an IRA LLC) is fundamentally different. In the Checkbook model, you’re in control. Through the vehicle of a specialized LLC, you are able to get your money out of the custodian’s hands and into the bank of your choice. There is a custodian in the checkbook model (the law requires it,) but it’s what we call a passive custodian. They are there not to hold your money, but merely to facilitate your money within a retirement plan framework. This is an important role as improper handling of the funds could trigger tax payments or penalties.
After your funds are moved via the custodian to your IRA LLC, you can go to the bitcoin exchange of your choice and open a new account in the name of the LLC. Then, you send the money in your IRA LLC to the LLC account at the exchange, and you’re off and running!
"Finding Broad earlier would have saved me many thousands of dollars, because not only was there an upfront fee (with the other company) that was between 10 and 20%, there was also a monthly fee. So it was very expensive and I couldn’t go in and buy and sell either which was very restrictive. They took a little of my crypto every month for their monthly service fee. Finding Broad Financial was great because, even though I wish I found it originally, it was easy to set up, the help I found was really great, and I could be more self-directed."
- Mark: Client since 2016
In a Checkbook model, the fee structure is very straightforward. There’s a flat one-time set up fee, which in most states is just under $1,500. There is also an annual custodial maintenance fee which is less than $400. (We can also set up a Self-Directed Checkbook Solo 401k, which can potentially save even more money. Call us if you think you qualify.)
Many people tell us that they wish they had thought of this sooner. Other companies charge 10–15% of the investment. That’s $10,000 on a $100,000 investment! The more they invest (and reinvest), the more they have to pay! With Broad the fees are static, low, and never rise based on your assets or transactions.
Our plan is fundamentally different than others. Our fees are flat, we have no minimum and you can invest in any cryptocurrency! The reason is that we’re not a broker; we’re not holding your money. We’re simply creating a legal vehicle for you to take your money to an exchange (or exchanges) of your choice. Also, this isn’t investing in a Bitcoin ETF, it’s buying and storing actual Bitcoin or other cryptos with your tax-deferred retirement funds (or tax-free retirement funds if you’re pursuing a Bitcoin Roth IRA).
The first step in setting up a plan with Broad Financial is to give us a quick call. We can send you an easy one-page form to fill out, or we can take your information right over the phone.
Either way, with Broad Financial, you get more than just an affordable, IRS-compliant plan. With an A+ rating from the Better Business Bureau, a stellar reputation for customer service, and lifetime, toll-free, totally free customer support, you get a trusted company that’s the industry leader for Checkbook IRAs.
One Paragon Drive
Montvale, NJ 07645
Phone: (800) 395-5200