Self Directed Checkbook IRA FAQ


Self Directed Checkbook IRA FAQ’s

(Also called an IRA-LLC)

 1. How does a Checkbook IRA work?

  1. The IRA Club  establishes a Self Directed IRA in your name.
  2. The IRA Club helps transfer funds from your former IRA or 401(k) to the new IRA Account.
  3. The IRA Club establishes an IRA-LLC in your state
  4. We install you as the manager of the LLC and your IRA as the sole investor in the LLC.
  5. We ask you to select a local bank and open a checking account in the name of the LLC.
  6. We then instruct your IRA to “Invest” in the LLC, thus moving money from your IRA to the LLC.
  7. You hold the only checkbook to the LLC and may now invest the funds on behalf of your IRA.

 2. What are the most common reasons to select a Checkbook IRA?

  • If your IRA will hold many assets.
  • If your IRA will be writing a lot of checks.
  • If your IRA will be investing on a tight time frame or at auction (such as a Tax Lien auction or Real Estate auction).

 3. What is the minimum dollar investment in to start a Checkbook IRA?

There is no minimum requirement however, there is a “practical” minimum. You may have a particular investment in mind. So, the cost of that     investment plus costs becomes your “practical” minimum. That amount will be unique to each person or situation.

 4. There is an investment I want to make with my IRA funds but, I have been told the investment would be a “Prohibited      Transaction”. Can I make that investment using a Checkbook IRA?

Sorry, no.  A checkbook IRA is still an IRA and must follow exactly the same rules.

 5. Once the LLC has been established why do I still need to have an IRA account?

The IRA account “owns” the LLC. It is the IRA account that is providing the tax deferment on the earnings.

 6. Can my husband and I each have a Checkbook IRA?

Yes, see Family checkbook IRA at

7. How long does it take to start a Checkbook IRA?

About 28 days.

8. In what name is the title to the property?

An asset bought inside a checkbook IRA is titled in the name of the LLC.


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For more information on Self Directed IRAs call toll free 888-795-7950


IRA Club, 79 W. Monroe  Suite 1208,  Chicago, IL  60603

For easy reference just click on the term that you would like more information about and you will go directly to that page Real Estate IRA, Checkbook IRA, Self Directed IRA, Solo 401 (k), Tax Lien IRA, Family Checkbook IRA, Gold and Precious Metal IRA, and Self Employed IRA.