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Q. Is Checkbook Control Flexible?
A. Yes. Spending the funds
is the main power you get.
The IRS has guidelines
that you can easily follow
in your Checkbook Control IRA.
Q. Is Checkbook Control Easy?
A. Yes. Having a Self-Directed
Checkbook Control IRA
is a learned skill that
offers many benefits to investors. |
Checkbook Control means that you can write checks to withdraw the funds in your IRA, and draw against IRA real estate assets. This involves some study regarding what is and is not allowed. Preferably when setting up an IRA LLC, you should be with a company that provides guidance to help you stay within the rules to help you avoid possible penalties.
The rules are listed in IRS publication 590, and the laws and amendments added by the Retirement Income Security Act of 1974 and the Taxpayer Relief Act of 1997. They can provide excellent information to keep you in compliance with IRA rules and regulations, while still allowing you to have checkbook control. IRA Rules for Checkbook Control state that if you have IRA real estate assets, they cannot include property which you are gaining financial advantage from. IRA's enjoy a tax-advantaged status and follow rules that are different from other forms of investment. These rules sometimes discourage investors. Some investors worry that it's to easy to make a mistake. The management of a Self-Directed IRA is a skill you can easily learn and checkbook control is a level of control that the investor should want. |
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Concerning your IRA real estate, keep in mind that it cannot include the house you live in. It can not include a house that an immediate family member lives in and it can't be the IRA real estate participate in a time share arrangement. The IRA real estate, as part of your IRA portfolio must collect funds that go towards retirement. So a piece of rental property can be purchased with Self-Directed IRA funds, and be part of the Self-Directed IRA with the rents that it collects remaining a part of the Self-Directed IRA. This will, over time, allow your investment to gain value through rents collected, through paying off the real estate itself, and through increased value of the real estate, through improvements you may make to the property and naturally rising real estate values. Yet because this is real estate in IRA holdings the financial gains are tax deferred. If within a Roth IRA taxes are never paid on the earnings because a Roth IRA holds no tax liability after the initial taxes are paid on it prior to investment in a Self-Directed IRA.
Having checkbook control allows you flexibility in spending the funds, as long as you follow the rules from the IRS. This allows you greater control over your own assets, and more control over your own destiny. The nice thing about Self-Directed IRA's is that you can have as much or as little control over the account as you wish.
How do you begin the process to have Checkbook Control as part of your IRA?
Call Louis Pugliese (866) 200-8554 (toll free) or (602) 889-7301, or
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