SDIRA Friendly banks

11 Replies

@Edward Grogan

Most any bank can hold an account for a self-directed retirement plan.  Not all bankers are trained on the topic, which can cause confusion and delay in many cases, however.

Following are great banks that are familiar with IRA programs.

Solera National Bank in Denver, CO

Titan Bank in Dallas, TX

Titan will also lend on a non-recourse basis.

Top lenders that may or may not be good for your banking side of the scenario are:

First Western Federal Savings in SD

North American Savings Bank in MO

Thank you Brian, I have been to five commercial banks here in North Jersey and had to explain the whole concept to them, even the managers. To have an account with the bank I will be partnering with for loans would be beneficial to both I would think.

Regards

Ed

@Edward Grogan

If you have custodial SDIRA - your IRA account must be held by this custodian.

If you are referring to Checkbook IRA (or IRA owned LLC it is often referred to) then you can open an account for the LLC that your IRA owns at any bank or financial institution. This would be business checking account for the LLC, not the IRA account.

Here is a list of lenders who provide non-recourse loans to retirement accounts:

https://www.biggerpockets.com/...


Folks - In a related note I have a few questions and would appreciate some guidance -

Can my SD IRA invest and become a partner in a deal with my LLC? Basically, part of the investment would be sourced through my SDIRA account while majority of it will be sourced through the LLC. I own 40% of the LLC.

IF the above funding structure is possible, is there a limit or threshold to the profit that can be shared with my SDIRA. The goal being I rapidly increase the SDIRA balances for obvious tax benefits.

Lastly, I have another investor who is over 67 year and is agreeable to open an SDIRA for investing with me. Since he is already past the retirement age, are there any financial / tax benefits for him to use SDIRA for investments?

@Kj Rustom

You are considered to be "disqualified person" to your IRA. Per IRS rules all transactions involving your IRA must be "arms length", which means that no disqualified person is allowed to be involved in such transaction, directly or indirectly. There is not enough information you provided to give you certain answer. I suggest you get on the phone with someone who specializes in self-directed IRA or experienced CPA to go over all of the details.

Regarding 67 year old investor - you should not be the one making the decision if using SD IRA would be beneficial for him. He also should get on the phone with the expert to discuss his situation, goals and possible tax implications of investing using SD IRA.

@Dmitriy, Hi, I'm looking to find a new bank as the Credit Union my IRA LLC uses requires me to have the wire request notarized if the amount exceeds $25k, and it is a bit of a PITA. Does anyone know if any online banks can host this type of account (without the notary requirement)? I use Ally Bank for a personal account and may reach out to them. TIA. 

Updated 29 days ago

Ally bank does not do business or entity accounts, only personal ones.

Originally posted by @Dmitriy Fomichenko :

@Edward Grogan

If you have custodial SDIRA - your IRA account must be held by this custodian.

If you are referring to Checkbook IRA (or IRA owned LLC it is often referred to) then you can open an account for the LLC that your IRA owns at any bank or financial institution. This would be business checking account for the LLC, not the IRA account.

Here is a list of lenders who provide non-recourse loans to retirement accounts:

https://www.biggerpockets.com/...


@Dmitriy, Hi, I'm looking to find a new bank as the Credit Union my IRA LLC uses requires me to have the wire request notarized if the amount exceeds $25k, and it is a bit of a PITA. Does anyone know if any online banks can host this type of account (without the notary requirement)? I use Ally Bank for a personal account and may reach out to them. TIA.

 

Originally posted by @Patrick Shawn Faherty :

@Dmitriy Fomichenko Update. SNB has been amazing to work with. I applied on my phone via an app. They have emailed and called to give me updates. I'm wiring funds from IRA Services today. Thanks for the recommendation!

Thanks for the update Patrick! Yes, from our experience team at Solera under leadership of @Kreighton Reed is the best! 

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