Following is a list of self-directed IRA providers for opening a self-directed IRA for investing in alternative investments such as real estate, precious metals, promissory notes and private company shares, to name a few.
Those looking to use the IRA LLC (also known as a checkbook IRA) to invest in alternative investments such as real estate, promissory notes, private shares, tax liens, and precious metals, to name a few, the following self-directed IRA LLC providers provide this service.
My Solo401k Financial http://www.mysolo401k.net/Self-Directed-IRA-LLC.html
Checkbook IRA: http://www.checkbookira.com
Those looking to invest in alternative investments such as real estate, promissory notes, private shares, tax liens, and precious metals, to name a few, the following self-directed IRA providers provide this service.
IRA Services Trust Company: https://www.iraservices.com/
Pensco Trust Company: https://www.pensco.com
Millenium Trust Company: http://www.mtrustcompany.com/
Equity Trust Company: https://www.trustetc.com
Frequently Asked Questions
Here are some issues to consider in choosing an Self-directed IRA provider:
1. In order to have checkbook control, the IRA account will need to be at a trust company that will allow the IRA to invest in an LLC (where you will be the manager and your IRA will be member – an as manager you will have checkbook access to the LLC bank account). Therefore, you will want to confirm that the trust company allows for investing in an LLC and the associated fees and minimum balance that applies to the IRA account.
2. Confirm that the IRA LLC provider will prepare all of the documents needed to not only form the LLC (articles of organization, SS-4 to obtain an EIN) but also the documents needed by the trust company to process the investment of IRA funds in the LLC.
3. Confirm that the provider has experience with the particular investments in which you intend to invest your retirement funds as you very likely will have questions in terms of the mechanics (e.g. how do you invest in real estate etc.).
4. Confirm that the provider has a pristine reputation (e.g. Better Business Bureau reviews, etc.).
5. In addition, if you are self-employed with no full-time employees you may wish to consider opening a Solo 401k instead of a self-directed IRA as it has several advantages over an IRA LLC such as much higher contribution limits, direct checkbook control (i.e. no need to have the account at a specialty trust company), ability to take a 401k loan, exclusion from unrelated debt finance income tax with respect to investment in real estate acquired with non-recourse financing, etc.
In addition, please note if you purchase debt-financed real estate with your IRA, unrelated debt finance income tax should apply to the income attributable to debt-financed real estate held by your IRA. Of course, you will want to review your specific situation with your tax advisor.