LLC Protections inside an IRA?

[Scott Frederick]

I'm considering opening a Self directed IRA to invest in rental real estate. There will be an LLC inside my IRA that would own the property. IRS regulations require that any loans I take on property in the IRA be non-recourse.

I'm wondering if the legal protection provided by the LLC as well as the IRS restrictions requiring real estate in an IRA be a ‘passive investment' mean it's less likely that my other personal assets could be at risk in a lawsuit? I would obviously get insurance coverage too. But does the IRA LLC make it more difficult to potentially go after my assets outside the IRA?