Imagine you spot an asset, like a piece of real estate, that looks perfect for your long-term retirement portfolio. There’s just one catch: if you don’t put in an offer soon, you won’t be able to capitalize on the opportunity. For many investors with traditional retirement accounts, this is a non-starter. However, with a self-directed IRA in which you hold checkbook control, your IRA could make an offer on the investment without extensive red tape through your IRA administration firm. How does it work? Let’s zoom in a bit and evaluate how a Checkbook IRA frees you as an investor.
What Is Checkbook Control?
Call it a “specialty” of ours here at TurnKey. A Checkbook IRA is a Self-Directed IRA that gives you direct control over your investments without needing approval from a custodian for every transaction. Instead of waiting for a third party to process paperwork, you set up a dedicated LLC owned by your IRA. This LLC has its own bank account, which you manage. When you want to invest, you simply write a check or send a wire transfer. It’s that easy.
This structure eliminates delays that can slow down traditional IRA transactions. If a real estate deal requires immediate action, you don’t have to wait for your custodian’s approval. You have the power to move quickly, making it easier to seize time-sensitive opportunities like the one we described above. But keep in mind you aren’t limited to real estate deals here—the transaction in question can be any valid alternative retirement asset, from tax liens to precious metals.
The Advantages of a Checkbook IRA
One of the most obvious benefits of checkbook control? In a word, efficiency. Traditional Self-Directed IRAs require custodians to review and approve transactions, which can take days or even weeks. With a Checkbook IRA, you bypass this process and execute investments in real-time. That flexibility can be crucial when bidding on properties, funding private loans, or purchasing alternative assets.
A Checkbook IRA also gives you better control over fees. With a traditional Self-Directed IRA, custodians often charge transaction fees for each investment. These costs add up over time. Since a Checkbook IRA operates through an LLC, you avoid these per-transaction fees, which can result in significant savings if you like to make frequent transactions within your retirement account.
Is a Checkbook IRA Right for You?
A Checkbook IRA works best for investors who want to take an active role in managing their retirement funds. If you frequently invest in real estate, private businesses, or other alternative assets, the ability to move quickly can be a game changer. It’s also a good fit for those who want to minimize custodial fees and have more autonomy in their decision-making.
That said, a Checkbook IRA does come with responsibilities. You have to follow IRS rules carefully, ensuring that all transactions comply with prohibited transaction regulations. Since you’re in direct control, keeping thorough records and maintaining a clear separation between personal and IRA funds is essential. If you’re comfortable with these responsibilities, a Checkbook IRA can provide the flexibility and freedom that traditional retirement accounts often lack.
Ideally, a Checkbook IRA is for you if you like to be free as an investor. If you don’t like being handheld—if you know what it is you want in your retirement portfolio—a Checkbook IRA can be one of the best ways to give yourself more investment freedom in retirement. If you’re interested in setting up one with us here at TurnKey IRA, call our toll-free number at 844-8876-IRA (472).
Imagine a life where your retirement investments feel as easy to make as any other investment. Sure, rules are separating the two, but once you have a Checkbook IRA in place, you’d be surprised how natural it can feel to make retirement investments. Interested in learning more? Contact TurnKey IRA at 844-8876-IRA (472) for a free consultation. Download our free guide or visit us online at www.turnkeyira.com.
