LLC | LP | Corporations | Pension Plans, IRAs, Or Any Self Directed Retirement Fund | Real Estate, Personal and Investment | Irrevocable Trust | Triangle
Pension Plans, IRAs or any Self Directed Retirement Fund:
USE - Asset Protection
There are fairly rigid rules about what investments may be made by a Self Directed Retirement Account without destroying its tax deferral status. One way to unlock the use of these funds is with a Retirement LLC. In this transaction the Self Directed fund exchanges assets for Membership Interest in a specially designed Limited Liability Company. Once the exchange has occurred the LLC can invest in:
- Real estate with a mortgage
- Hard money lending
- Precious metals (gold, silver, platinum)
- Private placement or offerings (oil and gas, real estate)
- International real estate
- Funding a business to be operated by the person covered by the Self Directed Account
- Trust deeds
- Other prohibited transactions
1) A Self Directed IRA using a specially designed Retirement LLC allows you to hold mortgaged real estate or other non traditional investments inside the tax exempt IRA while giving you check book control.
2) When the Retirement LLC sells an appreciated asset no tax is due.
3) Ownership of non traditional IRA investments allows you, as the Manager of the Retirement LLC, to have direct hands on control and investment decisions - check book control. Custodian involvement and hassles are eliminated.
4) A Retirement LLC can use IRA funds as a down payment for a real estate transaction with the Retirement LLC borrowing the balance. A regular IRA cannot directly participate in such a financing arrangement.
5) Your Retirement LLC continues to provide deferral of income and gains tax because it pays no taxes but passes them on to the Self Directed Plan with a 1099.
Here are the Elements
A) Create a Retirement LLC
B) Secure a Federal ID number
C) Establish a special LLC Operating Agreement
D) Open an IRA account with a special Custodian (Not all Custodians will accept this type of investment. We have identified a number of them that do accept this type of investment.)
Here is How it Works
1) The existing Self Directed Plan changes its Custodian to one that will accept LLC Memberships as an investment
2) Transfer the existing Self Directed Plan to the new Custodian
3) The Self Directed Plan transfers funds from the Self Directed Plan to the Retirement LLC and the Retirement LLC transfers Memberships to the Self Directed Plan
4) You as Managing Member of the Retirement LLC make tax free investment decisions for the Retirement LLC using the funds transferred from the Self Directed Plan
Fund a business
Leverage real estate
Hard money loans
Equities market using leverage
Your Retirement LLC grows and compounds with tax free profits.
Click here to view flow chart.