Checkbook Control / IRA LLCs:
In an effort to reduce fees, paperwork, and processing delays, some self-directed IRA investors choose to employ an IRA LLC structure. In such a structure the accountholder directs his IRA custodian to invest into a limited liability company (LLC) that he manages himself.  The accountholder can then execute investment purchasing transactions (you as the LLC manager will have LLC checkbook control) on the LLC level without the involvement of the IRA custodian, thus reducing fees and eliminating custodian transactional fees and delays.

The profits of the LLC pass through to the IRA with nearly identical tax favorable treatment. Some claim that this IRA LLC strategy has been legitimized through a tax court case: Swanson v. Commissioner, 106 T.C. 76 (1996). Others disagree on the validity of the court case[2]. Some refer to this structure as "checkbook control" because the IRA accountholder often has sole signing authority for the LLC and its bank accounts. Similar checkbook control for a self-directed 401(k) plan would not require an LLC because Internal Revenue Code Section 401 does not mandate the use of a custodian.

Advanced IRA Investment Strategies:
Are you an entrepreneur interested in using your IRA, 401k or other qualified retirement plan as a source of business financing to buy or start a business or a franchise?

Buy your retirement home now at today’s prices, rent it out, and then occupy it when you take your IRA distribution!
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