Creating Self Directed IRA for existing LLC

[Justin Walters]

I think I know most of the answers to the proposed question and do know that it will require the proper steps through a real estate attorney and/or CPA.  For my own edification, I wanted to propose the following.

Currently have a four member LLC with ownership split evenly at 25% per member. The LLC is registered in OK and currently has two properties in OK and three in MD (yes, we have it registered as a foreign entity in MD).

Moving forward, I was curious if it would be possible for I and/or my wife to make our individual portions of the LLC a self directed Roth IRA?

Second question, I was curious if anyone recommends that we go ahead and create a new LLC in MD and simply quit claim deed the MD properties from the OK LLC to the newly created MD LLC. We would save a little money by keeping it in one LLC but the savings is minimal.

For you to better understand the business side of the properties, the first OK property is mortgaged traditionally through a bank. The remaining properties have been funded entirely by leveraging a low maintenance account of one of the members which allows the member to borrow against their market assets and then those funds are loaned from their personal LLC to our real estate LLC.

I think I have provided more than enough information but if there are more touch points that are needed, please ask and I will provide.

Thanks for your input and thoughts in advance.

Justin

[Brian Eastman]

You simply cannot do this. Your IRA cannot purchase anything from you as you are a disqualified person to your IRA.