The actual account for Checkbook IRA

[Bernie Huckestein]

I've called my bank and they have no product to help me (and had no knowledge of what an SDIRA LLC is)...and maybe there is no option but thought I would check with others.

When establishing a checkbook IRA what do people do for the actual checking account...meaning,

If I have 200k that I want access to I understand the steps required to establish this SDIRA but I hate to leave 200k in a checking account and earning nothing or very nearly nothing in investment interest...I will have the 200k sit there until I find the right investment, maybe the investment doesn't use the entire 200k, and/or then there is the money coming back in from rents I don't really want that to sit either.

I do realize that I can buy other investments via this account but what is the best way to do so while still remaining liquid so I can pull the trigger on the right opportunity?

Thanks, b

[Brian Eastman]

@Bernie Huckestein

Think of the IRA-owned LLC as being like a "fund" owned by your IRA, where you are the fund manager.

As the manager of the LLC, you can choose to open one or more financial accounts in the name of the LLC at a bank, credit union or brokerage house of your choosing. Any such account would simply be a business account for the LLC, using the LLC tax ID.

You can then move funds back and forth between those accounts at will. It is all still within the IRA owned LLC.

We have many clients who open a checking account with a bank or brokerage for the purposes of managing alternative asset investments such as real estate, notes, etc.  They will then hold a separate brokerage trading account to keep contingency capital working productively.