How To Transfer Your Roth IRA To A Self-Directed Roth IRA LLC

Do you want to transfer your Roth IRA to a self-directed Roth IRA LLC? That’s great! There’s so many benefits to doing so, we can’t blame you!

There’s two things you should know first:

  • You can transfer Roth IRA or rollover eligible qualified retirement plan assets into a self-directed Roth IRA LLC structure.
  • You can’t rollover Roth IRA funds into a qualified retirement plan, such as a Solo 401k Plan or a pre-tax IRA account.

Okay, now that we’ve gotten that out of the way, let’s get this show on the road!


What’s the easiest way to fund a self-directed Roth IRA?

Transfers and rollovers. These two types of transactions allow movement of assets between like IRAs (Roth IRA to Roth IRA.)

Note: Only after-tax funds can be rolled into a Roth IRA. No pre-tax retirement funds are eligible to be rolled into a Roth IRA.

What you need to know about Roth IRA transfers to a self-directed Roth IRA.

As I told you above, a Roth IRA to Roth IRA transfer is one of easiest ways to move assets from one Roth IRA to another.

A transfer usually occurs between two separate financial organizations, but a transfer may also occur between Roth IRAs held at the same organization. If a Roth IRA transfer is handled correctly the transfer is neither taxable nor reportable to the IRS.

With a Roth IRA transfer, the Roth IRA holder directs the transfer, but does not actually receive the Roth IRA assets. Instead, the transaction in completed by the distributing and receiving financial institutions.

In order for the Roth IRA transfer to be tax-free and penalty-free, the Roth IRA holder must not receive the Roth IRA funds in a transfer. Rather, a check must be made payable to the new Roth IRA custodian.

Note: there is no reporting or withholding to the IRS on a Roth IRA transfer.

The retirement tax professionals at Royal Legal Solutions can assist you in funding your Self-Directed Roth IRA LLC by transferring your current Roth IRA funds to your new Self-Directed Roth IRA structure tax free and without penalty.

How does the Roth IRA to self-directed Roth IRA transfer work?

Royal Legal Solutions will work with you to establish a new self-directed Roth IRA account at a new FDIC and IRS approved Roth IRA custodian. The new custodian will then, with your consent, request the transfer of your Roth IRA assets from your existing Roth IRA custodian in a tax/penalty free Roth IRA transfer.

Once your Roth IRA funds are either transferred by wire or check to the new Roth IRA custodian, your new custodian will be able to invest the Roth IRA assets into the new Roth IRA LLC.

Once your funds have been transferred to the new Roth IRA LLC, you, as manager of the Roth IRA LLC, would have complete control over your retirement funds. Meaning you can make traditional as well as non-traditional investments tax free.

What’s the 60 day rollover rule?

You generally have sixty 60 days from receipt of the eligible rollover distribution from a Roth IRA account to roll the funds into a Self-Directed Roth IRA LLC structure. The 60-day period starts the day after you receive the distribution.

No exceptions apply to the 60 day time period. However, in cases where the 60 day period expires on a Saturday, Sunday, or legal holiday, you may do the rollover on the following business day.

Note: An individual receiving an eligible rollover distribution may rollover the entire amount received or any portion of the amount received.

The amount of the eligible rollover distribution that is not rolled over to a Roth IRA is generally included in the individual’s gross income and could be subject to a 10% early distribution penalty if the individual is under the age of 591/2.

How the 60 day rollover works with a self-directed Roth IRA.

Once the 60-day eligible rollover distribution has been deposited with the new Roth IRA custodian within the 60-day period, your new custodian will be able to invest the Roth IRA assets into the new Roth IRA LLC.

Note: Royal Legal Solutions will assist you in rolling over your 60 day eligible rollover distribution to a new FDIC and IRS approved IRA custodian.

Royal Legal Solutions will guide you throughout the entire process.

When you come to Royal Legal Solutions, you will be assigned a dedicated retirement tax professional to help you establish your Self-Directed Roth IRA LLC. He or she will guarantee that your self-directed IRA transaction is structured in the most tax efficient manner and is not in violation of any IRS rules.

Call Royal Legal Solutions now at (512) 757–3994 to schedule your free consultation today!



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