How to Make a Checkbook IRA Work for You

How to Make a Checkbook IRA Work for You
How to Make a Checkbook IRA Work for You

What is a Checkbook IRA? It’s a retirement account in which you hold an LLC, allowing the checkbook’s control to revert to you, the owner. And with this style of investing, you’d be amazed at the level of freedom possible. You can invest in the full range of retirement assets—like real estate and precious metals—all while using a low-maintenance, low-cost long-term solution that doesn’t require custodial approval for every transaction. But despite all of the benefits, you might wonder how to make this arrangement work for you. With that in mind, let’s explore how you can squeeze every ounce of benefit from your Checkbook IRA.

Making the Checkbook IRA Count

One of the best ways to make a Checkbook IRA work for you is to use it to invest in asset classes you know and understand. Let’s say, for example, that you have a lot of experience investing in real estate. Holding a Checkbook IRA would make it possible for you to handle many of those same investments with the power of a checkbook. Rather than waiting for custodial approval while you await an opportunity to invest in a single family rental, for example, you’d be free to write the check and include it in your retirement portfolio at almost a moment’s notice—assuming everything was lined up in terms of the contract and the finances.

One thing worth noting? Even when you have the freedom of checkbook control, you’ll have to remember the retirement rules before you make an investment. If we’re using the single family rental example, you wouldn’t be able to buy this with your retirement checkbook and then rent it out to a family member. It would still have to be a retirement asset, meaning that you’d have to keep it separate from any personal benefits you’d receive.

What Is a Checkbook IRA, and What Kind Should You Use?

A Checkbook IRA simply refers to the arrangement of using your IRA for a Single Member LLC, which holds the checking account in question. A Checkbook IRA can be a Roth IRA, for example. A Checkbook Roth IRA LLC makes it easier for you to invest—but that’s only once you have it set up. Be sure to consult with a financial advisor to better understand what type of account might work best for your situation.

This means you have more options than you might realize. Not only can you open a Checkbook IRA and invest in the full range of retirement assets—from real estate to tax liens—but you can think about different types of accounts that might suit your needs as well. And because these accounts can hold a Single Member LLC, you have some flexibility in your choices. Do you want to focus on a specific type of investing, like Roth IRA investing which uses after-tax money in the account? If so, that option is available to you.

How to Start Investing with a Checkbook IRA

The trick to investing within a Checkbook IRA is that you have to know how to set it up—or at least connect with someone who does. And that’s where someone like TurnKey IRA can step in and help. Though the Checkbook IRA is low-maintenance and low cost over its lifetime, it does take some time and money to establish in the first place. If you’re interested in working with us, we encourage you to reach out and learn how you can start a Checkbook IRA of your own. Just give us a ring at 844-8876-IRA (472) and let us steer you through the journey.

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