Your Freedom First 401k includes checkbook control provided by a national bank
Freedom First 401k ( Download the entire list above )
Self Directed IRA
Freedom First 401k
|IRA custodian – IRA custodian required – The Tax code requires a bank or trust company to hold title to the IRA as the custodian.||NO custodian required – Business owner is allowed to have 100% administration authority over their plan, with NO middle man.|
|IRA custodian – IRA owner must submit investment paper work and wait on the custodian to process it.||NO custodian required – Means no paper work to submit, thus avoiding lost time and lost investment opportunities because your custodian could not move fast enough.|
|IRA custodian – IRA custodian can say “NO” to an investment if they are not comfortable with it or do not understand it. Regardless of the fact that it’s YOUR money.||NO custodian required – Means no one can limit your freedom of choice, Invest where you want, when you want. Note: You must avoid disallowed investments and prohibited transactions (check with your tax adviser)|
|IRA custodian – IRA custodian charges ongoing percentage or transactional fees. Real estate investments involving multiple steps can add up fees very quickly in addition to the normal expenses associated with real estate transactions.||NO custodian required – Means NO extra fees which equals more tax deferred profit inside your plan which in turn provides more capital for you to invest.|
|IRA custodian – IRA custodian controls the purse strings to your money. You are NOT allowed check book control of your money.||NO custodian required – You have 100% check book control of the funds inside your 401k via a checking and savings accounts held at one of the nation’s largest banks.|
|IRA custodian – IRA custodian may allow the IRA to invest in a Limited Liability Company? They may allow the IRA owner to manage the LLC including the checkbook?||NO custodian required – Your 401k does not require an LLC for you to have check book control, which avoids the extra layer of complications and bookkeeping, and annual state fees for the LLC.|
While doing your research into self-directed IRA’s you have may have also discovered something called a Checkbook IRA or IRA / LLC. This strategy involves a self-directed IRA that purchases 100% ownership of a Limited Liability Company. The IRA owner then becomes the manager of the LLC and the money at the custodian is transferred into the checking account of the LLC.
Some folks mistakenly assume that having their IRA money inside the LLC allows them to do as they please. This is absolutely NOT the case – since the IRA owns the LLC, all laws governing an IRA apply to the LLC. WARNING: Failure to understand or adhere to these laws may result in the IRA owner committing a “prohibited transaction” which results in the IRA being fully distributed, paying the resulting income taxes and any assessed penalties.