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A Self-Directed IRA with checkbook control, often called an IRA LLC, gives investors the ability to make alternative asset purchases quickly and efficiently. Instead of waiting on custodian processing for every transaction, the IRA-owned LLC can write a check, initiate a wire, or ACH to purchase investments directly.
Thinking about using checkbook control in your Self-Directed IRA? This guide will help you understand the types of assets investors commonly explore. Just keep in mind, this is purely educational. Mountain West IRA does not recommend or endorse any investments, and it’s up to each client to evaluate opportunities carefully and seek professional guidance. Before moving forward with any investment strategy, make sure to talk with your CPA, financial advisor, or tax professional to ensure everything aligns with IRS rules and your long-term plan.
The appeal of an IRA LLC is speed and autonomy; you can act on investments immediately without waiting for custodian approval. But unlike a regular Self-Directed IRA, where the administrator helps guide compliance and answer questions about prohibited transactions, an IRA LLC places that responsibility squarely on you. Because your administrator cannot review documents or offer advice, working with the right attorney is essential. They will set up your LLC correctly, help structure your deals, ensure your documentation supports compliance, and protect you from missteps that could lead to prohibited transactions or penalties. The speed of checkbook control is only an advantage if you’re making informed decisions backed by proper legal guidance.
While checkbook control gives you more speed and flexibility, it does not change the underlying IRS rules. You’re still working within the same guidelines that govern all Individual Retirement Accounts (IRAs). That’s why it’s essential to understand what is not allowed when using an IRA LLC.
Below is a helpful breakdown of common investment options which many investors utilize, key restrictions, and compliance reminders to guide you on your Self-Directed IRA education journey.
1. Real Estate (The Most Popular Use Case)
Real estate is one of the most common assets purchased through an IRA-owned LLC. Investors often use checkbook control to move quickly on opportunities such as:
Because the LLC can act immediately, it’s especially useful for auctions, competitive bidding, or time-sensitive closings.
2. Promissory Notes and Lending
Checkbook control offers simplicity for issuing loans directly from the LLC, including:
All income from the loan must flow back into the LLC’s bank account, not your personal accounts, and you should never commingle IRA funds with personal funds.
3. Private Equity and Private Placements
Investing in private companies or funds is also common within an IRA LLC. Examples include:
These investments often require quick funding, which the checkbook structure supports.
Self-Directed IRAs can hold IRS-approved gold, silver, platinum, and palladium, but they must be stored with an approved depository.
Even with checkbook control, storing metals at home or in a personal safe is prohibited.
5. Cryptocurrency and Digital Assets
An IRA LLC allows investors to buy crypto directly through an exchange in the LLC’s name or maintain a compliant cold storage setup held by the LLC.
This approach can offer more control, but it also requires careful recordkeeping and compliance awareness.
6. Tax Liens and Tax Deeds
Many investors use an IRA LLC to participate in county tax lien or tax deed auctions, which often require fast payment.
Online platforms and in-person bidding both qualify, as long as everything is done in the LLC’s name.
7. Natural Resources and Commodities
Your IRA LLC can also invest in:
These alternative strategies can help diversify a retirement portfolio beyond traditional markets.
8. Alternative Real Estate Strategies
Checkbook control is especially helpful for deals requiring quick or ongoing management, such as:
All expenses, repairs, utilities, appraisals, etc. must be paid by the LLC.
9. Structured Settlements and Cash Flows
Your IRA LLC can purchase certain types of discounted future cash flows as long as the income is payable to the LLC.
10. Other Non-Traditional Assets
Depending on your strategy, investors may also explore:
Always ensure you avoid any personal benefits.
Checkbook control does not override IRS restrictions. You still cannot invest in:
Remember: the IRA is meant to benefit your future self, not your present self.
Mountain West IRA is a neutral third-party administrator. We do not recommend, endorse, or sell any investments. All clients are responsible for performing their own due diligence, understanding risks, and ensuring an investment is appropriate for their retirement strategy.
Before making any investment decision, always consult your CPA, financial advisor, or tax professional to ensure compliance with IRS rules and alignment with your overall goals.
Mountain West IRA can help you open a Self-Directed IRA or Solo 401(k), so you can invest in what you know best.
📞 Call us at 866-377-3311
This post is for informational purposes only and should not be considered financial advice. Please consult with a financial advisor for personalized advice.
Mountain West IRA, Inc. does not render tax, legal, accounting, investment, or other professional advice. If accounting, tax, legal, investment, or other similar expert assistance is required, the services of a competent professional should be sought.
Meet with our team to explore your personalized journey of building wealth through investing in real estate, promissory notes, precious metals, and other assets using your retirement fund.
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