Self Directed IRA – Option 1
Some brokerage firms offer an account they call a SDIRA. These accounts give you more control over the investment choices than is typical in a retirement account. However, you will find that all of the investment choices are investments offered by that firm. This type of account will not allow you to invest in real estate or other types of investments outside what that account offers
Self Directed IRA – Option 2
A second type of Self-directed IRA is an account where the IRA account takes title to all assets. For example, if real estate is purchased in this type of SDIRA the IRA Custodian issues funds for the purchase and title is issued to the IRA. These accounts typically do not allow private placement investments.
The upside of this kind of IRA is that, by the design of the account, prohibited transactions and taxable events are practically eliminated. These accounts are best for someone who does not have the time or expertise to be in charge of their own funds. Investors rarely need an attorney involved when they create this kind of IRA account, as the Custodians handle everything.
Self Directed IRA LLC – Option 3
The third type of Self-Directed IRA is the least common. Some custodians allow clients to invest their retirement funds into an LLC that the client manages. While the most flexible of the three types, the SDIRAs place clients in the position of being able to trigger prohibited transactions or taxable events for the IRA. This actually places the Custodian at risk of filing false returns that are still their responsibility. These Custodians typically require that the client come to them through an SDIRA promoter (dozens out there) or through an accepted fiduciary.
I can help you create either option 2 or 3. Get started today by calling 425.990.1021 or reserve a no cost 15 minute consult.