Has anyone here successfully set up a “Checkbook Control” Self-Directed Roth IRA LLC and used it to invest in crypto, such as LEO or Hive or bitcoin?
If so, I would love to hear from you as I am seriously considering that option.
My understanding of the standard “Checkbook Control” SDIRA process is as follows (similar to the graphic above):
- Set up the Roth IRA LLC.
- Establish a bank account in the name of the LLC.
- Receive a distribution from a traditional Roth IRA.
- Rollover the distribution (i.e. deposit it into the bank account owned by the LLC).
- Write checks directly from the Roth IRA LLC bank account to purchase assets that will be owned by the LLC.
According to my understanding (not financial or legal advice), the benefits would be:
- You have direct and immediate control of the liquid assets, which you can use to purchase other assets (subject to a few, but not many, restrictions).
- You have direct control to sell the assets owned by the LLC and re-invest the proceeds elsewhere (without triggering a taxable event, as long as you don't violate any of the Roth or SDIRA rules).
- As a Roth IRA, all future gains would be tax free (assuming you wait until retirement age to personally withdraw anything from the LLC). (I believe you can also do a “Checkbook Control” SDIRA as a traditional IRA, but my immediate interest is primarily with Roth SDIRAs).
Below is a link to an Investopedia article that identifies 6 companies offering SDIRAs, 5 of which currently offer “Checkbook Control” SDIRAs:
Best Self-Directed IRA Companies
I would love to hear from any folks who have successfully (or unsuccessfully) pursued crypto investments (BTC, #LEO, #Hive) using this method.
Thanks in advance!
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