Self Directed Investor Talk: Alternative Asset Investing through Self-Directed IRA's & Solo 401k's

• Checkbook IRA LLC provides two huge benefits: Ultimate control (and instant access to capital) for the self-directed IRA account holder, and potentially lower transaction fees.
• This strategy works by using the capital held by a fully self-directed IRA custodian to purchase 100% of the shares of an LLC, which is managed and controlled by the IRA owner.
• But the freedom to control the capital does not minimize the need for the account to avoid prohibited transactions. In fact, the Checkbook IRA LLC strategy increases the risk of committing a prohibited transaction in your IRA.
• After a rule change in 2014, your custodian notifies the IRS when you use this strategy, or invest in any type of "illiquid asset".
• Cost of committing a prohibited transaction in your IRA is very frequently 50% of the IRA balance or more, with a cost running to 100% not unusual.

Links & Resources:

• The Definitive Guide to Self-Directed IRA's
• Prohibited Transactions in your IRA
• Excellent Self-Directed IRA Attorney

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https://SelfDirected.org/1

The Big Idea

The U.S. National Debt is approaching $20 trillion... and it's the job of the IRS to collect the cash to pay that debt. What's a key target for them? Self-Directed IRA's... here's why:

Points To Ponder

• The U.S. National Debt is approaching $20 trillion dollars! 
• It's the job of the IRS to collect the taxes to pay off that debt
• There's a total of more than $25 trillion in retirement assets in America 
• Of that, $8 trillion is in IRA's
• Most vulnerable portion of that is in self-directed IRA's, because it's possible for IRS to confiscate the entire account value on account of "prohibited transactions"
• Self-directed IRA's are totally legal, and with proper care, prohibited transactions can be avoided

Resources

• Episode #1 of Self-Directed Investing with Bryan Ellis
• US National Debt Clock
• Investment Company Institute Report On Retirement Assets
• Government Documents Concerning Self-Directed IRA's

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