IRA LLC Benefits

Diverse Investment Options

A Self-Directed IRA owned LLC can invest in any investment not restricted by law. Acceptable investments include real estate, precious metals, private shares, tax liens and trust deeds. Visit disallowed self-directed IRA LLC investments to learn more.

Tax Deferred or Tax Free Gains

Because investment gains flow back to the Self Directed IRA owned LLC and are then reinvested, the IRA owned LLC continues to accumulate tax-deferred funds, or in the case of a Roth IRA owned LLC generate tax free gains.  Click here to learn about Roth IRA contributions and distributions.

Minimal Custodian Involvement 

The Self-Directed IRA LLC manager is responsible for the administrative review of alternative investment purchases, a function generally performed by the self-directed IRA custodian. Therefore, the self-directed IRA custodian’s role in connection with the IRA is greatly reduced to, for example, issuing annual Form 5498, processing annual valuation directive of IRA owned LLC, which is provided by the LLC manager to the custodian, and processing and reporting IRA distributions once distributions commence, to name a few.

Minimal Custodian Fees

Because investments are placed through the self-directed owned IRA LLC by the IRA participant as the named LLC manager, investment purchase fees generally charged by self-directed IRA Custodians such as Equity Trust and Pensco Trust are eliminated. Further, holding and safekeeping fees are eliminated with respect to the alternative investment holdings, with the exception of precious metals, which the regulations require stored with an approved depository institution such as Delaware Depository.