Frequently Asked Questions

How does an IRA LLC offer greater investment flexibility?

An IRA LLC, or a self-directed Individual Retirement Account Limited Liability Company, offers greater investment flexibility in several ways. Firstly, it allows the purchase of non-traditional assets. Traditional IRA custodians often limit certain investments, making it challenging to contribute to both traditional and non-traditional investments. However, an IRA LLC enables the owner to use their retirement assets to invest in non-traditional assets, broadening the scope of potential investments. Secondly, an IRA LLC provides checkbook control. The owner has complete control over the IRA LLC funds, giving them signatory authority over their retirement assets. This control is facilitated through a business checking account that holds the LLC assets, allowing the IRA holder to manage their retirement assets with ease. Thirdly, an IRA LLC offers limited liability protection. The owners cannot be held personally liable for the business's debts, providing a layer of financial security. However, there are exceptions to this rule, and owners can be held personally liable if the corporate veil is pierced.