Self Directed IRA Custodians
You are required by the Internal Revenue Service to have a third party custodian for your retirement funds.
Custodians must be approved by the IRS to act as custodians.
Banks and brokerage companies are the most common IRA account custodians. Though they will advertise Self Directed IRA’s, they will limit your investment choices to certificates of deposit, stocks, mutual funds, annuities, and similar financial instruments. It is in their own self interest to do so because they make additional fees from the sale of these types of investments. They will generally offer only their own captive products as investments to their Self-Directed IRA account holders. This severely limits the investment choices you have available.
If the option of using tax-deferred funds to purchase investments, property, mortgages, tax liens and other alternative investments in your retirement planning sounds appealing, you will need to use an independent IRA Custodian that permits truly self-directed ira investments.
By using an independent IRA custodian that does not offer affiliated investment products, you will have the ability to direct your retirement funds invested to any qualified investment that meets your investment requirements without institutionally imposed arbitrary restrictions… including your own Self Directed IRA LLC.
The IRA account holder cannot serve as the custodian of his or her own account. It’s important that you select a custodian that will allow truly self directed IRA’s or you will need to start the process again with one that does.
The custodian will hold the membership units in your Self Directed IRA LLC on behalf of your IRA. Your LLC will be owned by your IRA. For example: the ownership of the LLC will be “XYZ Trust Company FBO John Doe IRA Account# XXXXXXX. (FBO means “For the Benefit Of”).
Fees can vary widely among custodians, as can the flexibility of the services provided to account holders.
With an ordinary IRA the custodian directly holds title to the real estate on your IRA’s behalf, but does not service it (collect the rent, etc.), you will have to additionally contract with other providers such as a property management company. However, be sure that all rents are paid to the IRA and that all taxes are paid by the IRA.
It should be noted that the above only applies when the IRA directly owns the investment property in the custodial account – it does not apply when using a Self Directed IRA LLC to make your investment.
When using a Self Directed IRA LLC the LLC will hold title to the property and you as Manager of the LLC can manage the property, collect the rents and pay expenses.
IMPORTANT NOTE: Custodians will not set up your LLC. They will only set up your Self Directed IRA custodial account.
Read what our customers have to say……
T E S T I M O N I A L S
This has been a high-value experience. ....has been very responsive to questions and his delivery has exceeded my expectations - an unusual experience for today's consumers."–Brian Springmann - Mont Vernon, NH
Actually, I want to thank YOU for setting me up with this LLC and for recommending the trustee. This is by far the smartest thing I’ve ever done in my investment life. When I left my previous employer I rolled over my 401K, and since I had always contributed the max, it was a good chunk. I’ve averaged over 9% annually, mostly through private lending. I’ve heard so many horror stories from people … custodians charging them a fee every time they want to make an investment, delays so long that the deal falls apart while the custodian micro manages every detail of the investment, etc. So when people start whining about their self-directed IRA’s, I just say, “Well, you just didn’t do it the right way, that’s all!”. And then I email them your contact info and the contact info for my custodian."–Matt Taylor – Weare, NH
Just wanted to write a note and thank you for your help in answering my many questions and then setting up my IRA LLC. In spite of what I would considered a complicated process, you guided me through it with speed and efficiency. Your service has to be the easiest to work with. You allowed me to purchase an investment property in time to get the great deal I was looking for and that alone justified the cost. Please feel free to use my name or contact information if you need it.Thank you again”–Doug Ness – O’Fallon, MO
I located Self Directed IRA LLC through the Better Business Bureau. They had 0 complaints over the past few years so I called them. I found their services to be excellent. My phone calls were always promptly answered or returned, and my questions answered clearly and thoroughly. All documents were sent quickly, and in about one month I had transferred my pension funds out of Wall Street, where they had been losing money consistently, and invested in a rental property which will net us at least 8% interest per year.I recommend them without reservation.”–Douglas Booth, Attorney at Law – Santa Fe, NM
Thank you for all your superb assistance today. I know I made a great decision in choosing the right firm and the right person by you demonstrating your expediency, accessibility, knowledge and competency throughout the first day. Once again “thank you!–Richard Ehlers – Hoffman Estates, IL
You more than met our needs in setting up our LLC with great efficiency in time and expense. Excellent company that understands their business and the needs of their customers!!”–Carl NcNew – White Salmon, WA
I highly recommend IRA LLC to any body who is looking for help..very well knowledgable in the subject..very trust worthy.”–Franklin Ajjarapu- Libertyville, IL
…… knows his business very well. He has steered me succinctly and well through the complicated steps of forming and optimizing my IRA.” –Jonathan Lysenko – New Canaan, CT
I was very pleased with the handling of my IRA transactions by your firm, and I would not hesitate to use your services again in the future.” –John Bagoy – Coquille, OR
All interactions with staff have been very professional, with helpful, knowledgeable, and timely handling of my and my other family members IRAS.”–James Mynatt – Atlanta, GA
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