... holding an LLC within an IRA means that the IRA, not the individual, should be listed as the member...
ASHEVILLE, N.C. (PRWEB) April 08, 2019
Because investors can hold an LLC in a Self-Directed IRA, this can seem like a great option for anyone looking to invest their retirement portfolio horizons beyond the typical stock and bond funds, but should investors weigh more variables before considering an LLC? A recent post at American IRA argues that retirement savers should be aware of a wide range of these considerations before starting with an LLC in their Self-Directed IRA.
The post notes that holding an LLC within an IRA means that the IRA, not the individual, should be listed as the member - and investors will need an operating agreement document tailored specifically to their Self-Directed IRA. A standard operating agreement that most attorneys use for standard LLC products will not suffice for this kind of arrangement. The article further recommends sending a copy of that managing operating agreement to American IRA or whichever custodian or third-party Self-Directed IRA administrator the investor collects.
Because the IRA can be a member in an LLC that is owned by multiple partners, these issues can grow complicated. American IRA recommends taking the process slowly but thoroughly to ensure that every step is fulfilled.
“LLCs can be complicated on their own,” said Jim Hitt, CEO of American IRA. “So, it’s no wonder that some people who are just entering the world of Self-Directed IRAs can be a little reluctant to try them out within an IRA, but that does not mean that investors have to be put off, either. When they understand what will be required of them and have a sense of the steps to take, there’s plenty they can do to protect themselves and ensure that the process works smoothly.”
There are other limits, such as purchasing an investment property using an LLC within a Self-Directed IRA and not being able to use the property for one’s own personal benefit or convenience, which includes the use for spouses, children, and other relatives.
For more information about these limitations—and what a Self-Directed IRA can accomplish—visit AmericanIRA.com or call 866-7500-IRA.
American IRA, LLC was established in 2004 by Jim Hitt, CEO in Asheville, NC. The mission of American IRA is to provide the highest level of customer service in the self-directed retirement industry. Jim Hitt and his team have grown the company to over $400 million in assets under administration by educating the public that their Self-Directed IRA account can invest in a variety of assets such as real estate, private lending, limited liability companies, precious metals and much more.
As a Self-Directed IRA administrator, they are a neutral third party. They do not make any recommendations to any person or entity associated with investments of any type (including financial representatives, investment promoters or companies, or employees, agents or representatives associated with these firms). They are not responsible for and are not bound by any statements, representations, warranties or agreements made by any such person or entity and do not provide any recommendation on the quality profitability or reputability of any investment, individual or company. The term "they" refers to American IRA, located in Asheville and Charlotte, NC.