How to make an
Additional Capital Contribution to an IRA-LLC
Many people who own a Checkbook IRA (IRA-LLC) find that after some time they want to add additional funds to their IRA-LLC. As the Internal Revenue Code (IRC) does not specify a procedure for making an additional capital contribution from an IRA to an IRA-LLC, we have established a set of steps to help you complete the transaction.
1. Decide how much you will add to your IRA-LLC.
2. Contribute or transfer that amount to your IRA account. To do this you simply complete a “Transfer Authorization” form or an “Add Funds” form. Both forms are available on our web site. Do not make the contribution directly to your IRA-LLC checking account.
3. Provide us with an Opinion Letter from an attorney stating that the additional investment from your IRA to the IRA-LLC is not a Prohibited Transaction.
The best attorney to use is your own attorney. If you do not have an attorney, The IRA Club can suggest a list of attorneys for you. THE IRA CLUB HAS NO BUSINESS RELATIONSHIP WITH ANY SUGGESTED ATTORNEY AND EARNS NO FEE COMMISSION OR COMPENSATION FROM ANY ATTORNEY. Typically the attorney fee for such an Opinion Letter will be about $250.
4. Complete an “Investment Authorization” form instructing that your IRA invest additional capital in the IRA LLC.
There is no need for additional Opinion Letters. Once you have provided us with an Opinion Letter you will not need another Opinion Letter when making future capital contributions.
Flow of funds:
- When making an additional capital contribution to your IRA-LLC the funds are first sent to your IRA account. Then your IRA account invests in the LLC
- When taking a distribution the funds must be distributed from your IRA account.
Taking a Distribution From Your IRA-LLC
For more information on Self Directed IRAs call toll free 888-795-7950
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- To see what our client say go to Testimonials
- Submitted by Dennis Blitz, The IRA Club
IRA Club, 333 N. Michigan Ave Suite 2220, Chicago, IL 60601
