Rolling over another IRA into an established SDIRA and LLC

[David Stratton]

Is it possible to roll another personal IRA into an already established SDIRA and then into the LLC already established under this SDIRA. I already have two properties in the LLC and would like to move the money from my other IRA into my LLC. I understand everything must go through my Custodian. The reason I ask is I have found several companies that say it can be done and others that say it is a prohibited transaction.

Dave Stratton

[Daniel Dietz]

David,

I am in a three way LLC with my brother and father, all using our individual SDIRAs (two traditional, one ROTH). We are each 33.33% owners and hold one property. We ARE looking for more properties and I too specifically asked ahead of time if we could add more IRA funds in the future.

In our case, being a '3 way LLC', we CAN from everything we have been told, but we MUST keep each of our contributions into the LLC in the exact same proportions of 33.33% each. I am not sure if this is always true, or if it is because we are 'disqualified parties' and that is why it must stay that way. I think it is the latter of the two. We CAN each roll however much we want into each of our individual SDIRAs, but the amount we 'transfer' over to the LLC must remain in that ratio.

An example for anyone in a multi member LLC is that in our case of 33.33% ownership each is that within THAT particular LLC we must keep the same 'ratio', but say if any of us wanted to buy a property on our own, we could use the same SDIRA to do that OUTSIDE of the 3 way LLC.

Hope that helps. If there is one thing I have learned out there is that there is a LOT of mis-information even from the 'experts' on occasion. See my earlier posting for info on who we use and are very happy with if interested.

Dan Dietz