SDIRA and Stock Options

[Todd Krzeminski]

I'm interested in investing a portion of my SDIRA (with Equity Trust) in Stock Options. Equity Trust requires that I open an individual brokerage account (with Fidelity, Charles Schwab, etc.) in the name "Equity Trust Company Custodian FBO IRA". I haven't found a brokerage that will allow this -- I'm assuming I'm not talking to the right people at the brokerage houses that understand this. Does anyone have recommendations or ideas on how I can accomplish this?

[Dmitriy Fomichenko]

That is the challenge when custodian has possession of your funds. You may want to consider what's called a "Checkbook IRA" (aka IRA owned LLC).

With this structure special purpose LLC is created, your IRA is the member (owner) of it and you are the manager. IRA makes the investments into the LLC (buys LLC units) and from that point on your have checkbook control over your IRA funds, no longer you need to go through a third party custodian or administrator to make the investment, you are in the "driver's seat" as one of my clients said.