The Self-Directed IRA LLC gives you absolute freedom & control to decide how you invest and what you invest in. When you think about it, this is a privilege the average investor lacks.
While there are many advantages to this powerful investment vehicle, we’ve taken the time to list some of our favorites. Below you can read about the top seven exclusive & cost effective benefits of the Self-Directed IRA LLC.
7 Biggest Benefits Exclusive to the Self-Directed IRA LLC
With a Self-Directed IRA LLC, you have all the tax advantages of traditional IRAs, as well as tax deferral and tax free gains. All income and gains generated by your IRA investment will flow back to your IRA tax free.
What this means is that you’ll experience tax free growth.
Instead of paying tax on the Self-Directed IRA returns of an investment, tax is paid only at a later date when a distribution is taken, leaving your investment to grow tax free.
Investment & Diversification Options
With the Self-Directed IRA LLC, you can invest in almost any type of investment. Your choices include real estate & private business entities. Once again, you can do this tax free.
This will also enable you to build a solid portfolio that’ll generate beefy returns in both good times and bad times.
With a Self-Directed IRA LLC, you will have direct access to your IRA funds. This allows you to make an investment quickly and efficiently.
There is no need to obtain approvals or send money to a custodian.
With a Self-Directed IRA LLC, whenever you find an investment that you want to make with your IRA funds, simply write a check or wire the funds straight from your Self-Directed IRA LLC bank account to make the investment.
Other retirement accounts usually have to talk with their custodian first, which can cause a delay.
Another advantage to a Self-Directed IRA LLC account is that you can save a lot of money on custodian fees.
You will not be required to pay custodian transaction fees and account valuation fees. (Which can add up to be thousands of dollars over the years.)
By using a Self-Directed IRA LLC, your IRA will benefit from the limited liability protection afforded by using an LLC. With an LLC, all your IRA assets held outside the LLC will be “shielded” from attack.
This is especially important in the case of IRA real estate investments. This is an area where many state statutes impose an extended statute of limitation for claims arising from defects in the design or construction of improvements to real estate.
Asset & Creditor Protection
By using a Self-Directed IRA LLC, you will be protected for up to $1 million in the case of personal bankruptcy. Most states will also protect a Self-Directed IRA from creditors.
The Bottom Line
The Self-Directed IRA LLC is like an IRA on steroids. If you want to take back control of your finances, get yourself a Self-Directed IRA LLC.