All Forum Posts by: Mat Sorensen

You can open the IRA account with Directed IRA and establish an IRA/LLC to give you checkbook control of the IRA.

Dustin,

You could consider rolling the IRA into a Self-Directed IRA and having the IRA own the property. This way you won't be paying the penalty or taxes for the distribution of the IRA, can use those funds to buy the property, and rental income can come back to the IRA tax free.

Luke,

As long as you are not an owner or would benefit outside of the IRA from investing in the fund I do not see any reason why you could not.

You do not have to purchase within an LLC owned by your IRA but having checkbook control with the LLC is a big advantage. You would not have to reach out to your custodian every time there were an expense to be paid.

In order to leverage the IRA for property you would need to take out a non-recourse loan.

To add on, we recommend the LLC be established in the state your property is in.

The custodian can be in any state.  Search for great customer reviews such as Google reviews and ask for their fee schedule to compare.

I can't speak to what other Self-Directed IRA companies charge, but Directed IRA charges a flat rate $295 annual account fee regardless of how many assets or what the account value is. Our sister law firm, KKOS lawyers charges $800 (plus your state filing fee) to establish a single member LLC.

I hope you enjoy the book Erin. I think it's pretty great. Most of the answers to your questions will be in Chapter 9 or 13. 

**Early Bird discounts are only available until Thursday, May 31st at 11:59 pm (PDT) - $199 Live | $99 Virtual **

Learn more and register now at https://sdirasummit.com.

Join us at the 3rd Annual SDIRA Summit as we return to sunny Orange County, California this summer~

The Summit will be an all-day event with 10+ sessions dedicated to sharing investing strategies with self-directed investors of all backgrounds. With engaging foundational and advanced content hosted by experts throughout the industry, every attendee will have numerous opportunities to learn something new. Event materials will be available, and a plated lunch will be served to all in-person attendees.

*****

2018 Schedule (all times PDT)

- 8:30 - 9:00 am - Self-Directed IRA Foundations | Mark J. Kohler

- 9:00 - 9:45 am - The Prohibited Transaction Rules and Investment Structuring | Mat Sorensen

- 10:00 - 10:45 am - Using Self-Directed Funds in Real Estate Deals

- 10:45 - 11:15 am - Using an IRA/LLC or Checkbook Control IRA | Mat Sorensen

- 11:15 am - 12:00 pm - Solo 401(K) Specific: Self Directed Rules and Strategies for Solo 401(K) Owners | Mat Sorensen

- 12:00 - 1:00 pm - Lunch

- 1:00 - 1:30 pm - Why Self-Direct? | Mat Sorensen

- 1:30 - 2:00 pm - Asset Protection Rules for Your Self Directed IRA, 401(K), And Retirement | Mark J. Kohler

- 2:00 - 2:45 pm - Integrating Self-Directed Investments into A Comprehensive Financial Plan | Randy Leubke

- 3:00 - 3:30 pm - Self Directing Your Health Savings Account and Kohlercare | Mark J. Kohler

- 3:30 - 4:00 pm - Avoiding, Reducing and Properly Complying With Unrelated Business Income Tax (UBIT) | Mat Sorensen

- 4:00 - 4:30 pm - Supercharge Your Self Directed Account | Mat Sorensen

*****

2018 Speaker Lineup

- Mat Sorensen - Mat Sorensen is a lawyer and the author of The Self-Directed IRA Handbook: An Authoritative Guide for Self-Directed Retirement Plan Investors and Their Advisors. The Self-Directed IRA Handbook is an Amazon Best-Seller and is the most widely-used book in the self-directed IRA and 401(k) industry. Mat's legal practice has a particular emphasis on self-directed retirement plan law. Mat has advised over one-thousand clients with self-directed retirement plan investments and has established IRA/LLCs, partnerships, private offerings, corporations, and other investment structures with self-directed IRAs and 401(k)s.

- Mark J. Kohler – Mark J. Kohler, M. PR.A., C.P.A., J.D., is a best-selling author on asset protection and tax planning; national speaker, radio show host, blogger for Entrepreneur.com, real estate investor, and partner of law firm, Kyler, Kohler, Ostermiller & Sorensen, and CPA firm Kohler & Eyre. Mark is a personal and small business tax and legal expert, who helps clients build and protect wealth through wealth management strategies, and business and tax remedies often overlooked in this challenging, ever-changing economic climate. His seminars have helped tens of thousands of individuals and small business owners navigate the maze of legal, regulatory and financial laws to greater success and wealth

- Randy Leubke – Randy is an independent financial advisor and the Principal and Founder of Lifetime Paradigm, Inc., an intellectual property company specializing in providing Real Estate Integrated and Self-Directed Retirement Planning, Asset Protection, Estate and Tax Planning for Business, Home Owners and Real Estate Investors, providing well beyond traditional financial planning and wealth management, Randy specializes in providing Cash-Balance Pensions, 401(k) Profit Sharing and 401(h) Tax-Free Health Benefits Savings Plans. Randy’s focus is on providing his clients with one thing, “certainty,” by helping his clients to achieve all their financial goals in a better, smarter, safer way.

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FAQs

- Q: What hotels are nearby?

A: The Self-Directed IRA Summit will be held at the Hotel Irvine. Rooms may be booked through the hotel at www.hotelirvine.com. However, if you require a reservation elsewhere, there are over twenty hotel options within a few miles of Hotel Irvine.

- Q: Is there parking nearby?

A: Parking at Hotel Irvine is available to attendees at a reduced rate: $10 for self-parking or $8 for valet.

- Q: What is the weather like in Irvine during the Summit?

A: Temperatures range from an average high of 85, to an average low of 61.

- Q: What is there to do nearby?

A: In the heart of Southern California, Irvine is home to the Irvine Museum, the Orange County Zoo, Oak Creek Golf Club, a variety of small businesses and shops, numerous restaurants and bars, and of course, multiple beaches nestled along the Pacific.

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Testimonials

- “Mat’s ‘Super-Charge’ section was great, and I also liked Randy’s section on ‘Planning Your Self-Directed Retirement.’” S.D.

- “Mat Sorensen and his presentation was outstanding.” M.S.

- “Mat Sorensen’s ‘Super-Charge’ presentation was great. I also liked Randy Leubke’s section on planning.” L.D.

- “The Summit was very well organized with great speakers who spoke on topical issues.” O.E.

- “I liked Mat’s information on non-recourse loans the most. It was very helpful!” C.M.

- “It was really helpful to hear Mark Kohler’s and Randy Leubke’s presentations on ‘Asset Protection Rules and Maximizing Your Self-Directed Retirement.’” M.D.

- “Mat and Mark make it easy to understand and absorb difficult-to-understand material.” M.H.

- “It was very helpful to learn about asset protection rules for self-directed IRAs, 401(k)s and retirement.” R.V.

*****

Want to register or sponsor the 3rd Annual Self-Directed IRA Summit? Please contact Event Coordinator Thomas Steinhagen by email at [email protected].

Matthew, Yes, the TD Ameritrade account for IRA/LLCs is the best option if you want to use a brokerage account. That's a pretty new option but I'm so glad the brokers are finally figuring this out. The other options we tell clients is to move money from the IRA/LLC bank account back to the Self directed IRA and to do a transfer from the self-directed IRA to the brokerage IRA. This is a viable option if you move money around only once or twice a year. The other option, of course, is a regular brokerage account in the LLCs name (no margin account) but we have seen issues with this (as has been noted in the prior posts) and 1099 reporting and withholding done by the brokers.

As to what EIN to use, first, use the LLC EIN where possible. When using a W-9 the instructions on a single member LLC say you need to list the EIN of the underlying owner (e.g. the IRA). What I recommend is to list the IRA as the underlying owner (e.g. ABC Trust co FBO Mat Sorensen IRA) and then list the custodians reporting tax ID. That way you don't end getting the tax reporting personally. Another option is to list the IRA as the owner as Mat Sorensen IRA (how the IRS recognizes IRAs) as the owner listing the owner's SSN (this is the tax ID for the IRA until it obtains its own) or the IRAs own Tax ID if you have one (you'd only have one if you had UBTI and were doing 990-Ts). Using the custodian's Tax ID is best as it keeps the owners SSN off the tax reporting but both methods would be correct.

I hope that helps.