Welcome to my Checkbook IRA Review 2022!
Are you looking for a Self-Directed IRA Custodian?
Do you need unlimited investment options and total investment control?
So, let’s get to know who they are and what they do.
Let’s start this Checkbook IRA Review for 2022.
What is Checkbook IRA?
Checkbook IRA is a combination of a Self Directed IRA owning an LLC (Limited Liability Company) and you being the manager.
Also, they use an LLC because it is a business entity that is a cross between a corporation and a partnership and is the PERFECT investment vehicle for your IRA.
More so, there are no tax returns to file nor any meetings, minutes or resolutions required. Annual reporting is dependent on what state you set LLC up in.
So, let’s explore Checkbook IRA and the other stuff that they offer.
Products and Services of Checkbook IRA
They offer two types of Check Book Control Accounts. Let’s get to know them both:
Checkbook IRA LLC
This is the set up that started a revolution.
Also, it is less expensive and much more powerful than a simple Self Directed IRA. The Check Book IRA® option has been available since 1996, but most custodians have done a good job keeping it a secret.
Furthermore, by having a custodian that has nothing to sell you and adding an LLC, you can have instant investment control to go outside the typical Wall Street type investments.
HOW DOES IT WORK?
- First, your accounts are moved to their Self-Directed Custodian.
- Next, they form a single member LLC. Your IRA will be the 100% owner.
- Then, their Custodian names you the manager in the Operating Agreement. It is the LLC doing the investing now.
- You as Manager have INSTANT and TOTAL control of the LLC.
- Next, all profits stay in the LLC and are owned by your IRA.
- More so, there are generally no tax returns to be filed.
- As manager, you are armed with an Operating Agreement that allows you the investment freedom you long for. No need to chase down permission from the custodian; you already have permission in your hand!
Checkbook Solo 401(k)
If the Check Book IRA was the trailblazer and the Cadillac of all plans, the Self-Sponsored Check Book 401(k) is the Rolls Royce.
Furthermore, it is specially designed for the Self-Employed, it allows more flexibility and contribution limits far exceeding anything you could get with an IRA.
More so, you must be making an ongoing effort to receive Self Employment Income (1099). If you don’t have any Self Employment Income, read here for ideas on how to qualify anyway.
- First, you are allowed to be your own Custodian/Trustee.
- Also, the retirement of your Spouse may be included.
- More so, you may borrow personally up to $50,000 from the plan.
- NO UDFI when using leverage buying Real Estate
- An LLC is NOT required for control but may be added.
- The plan can even be set up with a sole proprietor.
The Solo 401(k) is amazing. It will allow you to make annual pretax contributions up to $54,000 and $60,000 if you are over 50.
More so, if you are a couple, that means you have up to $120,000 annually that could go into a plan that gives you instant checkbook control over your investments.
They offer innovative funding – they were the first to introduce ROBS (Rollover as Business Startups) with their Rainmaker Plan.
More so, while there are competitors offering similar funding solutions, only Benetrends has the breadth of funding opportunities and the experience to successfully launch the dreams of entrepreneurs – 17,000 and counting.
How it Works?
- First, set up A C Corporation.
- Next, design a New Qualified Retirement Plan.
- Then, transfer your retirement funds into the new plan.
- Lastly, use the retirement plan’s funds for your business.
Also, with their Rainmaker Plan you can use your Retirement as funding you’re able to grow and succeed in business quickly with out the burdensome monthly payments and long term debt.
Reviews and Ratings of Checkbook IRA
Here are some of the reviews of Check book IRA:
What I Like About Checkbook IRA
A lot of Investment Options
Your IRA-LLC can make any investment a regular LLC can invest in as long as you stay away from Insurance contracts and collectibles. Also, you may not have any “self-dealings” without a DOL exemption.
Wouldn’t you love to have the option to invest your IRA in:
- Residential Real Estate
- Raw Land
- Private Notes and Loans
- Limited Liability Companies (LLC)
- Tax Certificates
- Stocks, Bonds, Mutual Funds
- FOREX Trading
- Auto loans/paper
- Commercial Real Estate
- Trust Deeds / Mortgages
- Private Stock Offerings
- Limited Partnerships
- Commercial Paper
- Many other investments
A Lot of Financing Options
Here are some of the retirement accounts that can be moved into Check Book IRA accounts:
- Traditional IRAs Sep IRAs
- Roth IRAs 401(k)s
- 403(b)s Keoghs
- Qualified Annuities Profit Sharing Plans
- Government Eligible Deferred Compensation Plans
- Coverdell Education
- Complete Control
More so, having a self-directed IRA custodian is one step toward obtaining complete control. Also, when an account is established with a self-directed custodian, you are still required to get permission from the custodian before making each investment.
More so, this is time consuming, cumbersome and more expensive than it needs to be. To obtain a truly self-directed retirement account, you need the CHECK BOOK IRA, LLC. This is the structure that gives you checkbook control.
What I Don't Like About Checkbook IRA
Prohibited Investment Options
The Internal Revenue Code does not specifically authorize investments within an IRA; rather, the code outlines what types of investments are not allowed. Prohibited Investments include:
- Metals (there are exceptions)
- Coins (they are allowed but with restrictions)
- Alcoholic Beverages
- Life Insurance Contracts
- Stock in a S-Corporation
- Certain other tangible personal properties
Not Everyone Can Invest
Here are some of the people who can’t transact this:
- The IRA holder and his, or her spouse;
- the IRA holder’s ancestors, lineal descendants and their spouses;
- investment advisors and managers of any corporation, partnership, trust or estate in which a disqualified
- person has 50% or more interest; and
- anyone providing services to the IRA, such as a trustee or custodian.
Full-time employees are not allowed
The Solo 401(k) unlike the regular 401(k) plan was designed to be implemented only by self-employed individuals or small business owners with no employees that are full-time.
Furthermore, there is an exception made for your spouse if they are a full-time employee.
Is Checkbook IRA a SCAM?
Checkbook IRA is NOT A SCAM.
However, it is not for everyone. Also, not everyone has the time and effort to spare to have a certain business and understand a whole new different concept.
So, it is different with GOLD IRAs wherein you can just sit back and relax, and have your money protected.
This 2022, when it comes to GOLD IRAs and protecting your retirement funds, I would definitely suggest GOLDCO.
Goldco is a leader in the precious metals industry, with over a decade of experience helping customers protect their retirement savings. If you have an IRA, 401(k), 403(b), TSP, savings or similar tax-advantaged retirement account, a Goldco Specialist can help you protect those assets with a Precious Metals IRA.
They also offer direct sales of gold and silver to our customers. If you have a savings account, a Goldco Specialist can help you diversify those funds with precious metals. Whether you want to roll over retirement assets into a Precious Metals IRA, or buy gold and silver directly, a Goldco Specialist can help you navigate each step of the seamless process from beginning to end.
More so, they provide you with the best possible precious metals available and are now proud to offer more comfort and security with your purchase.
More so, Goldco is a privately held firm specializing in wealth and asset protection. They are rated A+ by the Better Business Bureau and Triple A by Business Consumer Alliance. Their quality customer service, dependability, and ethical business practices have resulted in thousands of satisfied customers and positive reviews.
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