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Self-directed Checkbook IRA LLC FAQ: I’m thinking of setting up a Roth IRA, LLC to invest in promissory notes. Can I just invest funds in my Roth IRA Fidelity in the IRA LLC?
It will first be helpful to review the IRA LLC structure.
First, one needs to roll over his or her funds (and/or make contributions) to an IRA at a specialty IRA trust or custodian that will allow you to invest in a brand-new LLC.
For those individuals who are not eligible to set up a solo 401(k) (e.g. because such individual is not self-employed, or maybe they are self-employed, but their business has full-time W-2 non-owner employees working for it such that they’re not eligible to set up solo 401(k) plan, or perhaps such person has funds in a Roth IRA which can’t be rolled over to a solo 401k)
For such individuals who are looking to invest their retirement funds with checkbook control in alternative investments, the IRA LLC would allow them to do so.
The sole member of the LLC is the IRA and the individual is the manager of the LLC such that he or she will have direct checkbook control over the LLC bank account.
With regards to investing funds directly from a Fidelity Roth IRA to an IRA LLC, Fidelity does not allow Roth IRA funds to be invested in an IRA LLC. As result, one would need to roll over the funds to an IRA at a specialty IRA trust or IRA custodian that offers an IRA that allows for investing in IRA LLC.