How is the Self-Directed IRA with Checkbook Control structured?

  • Created

The Rocket Dollar Self-Directed IRA Trust structure is set up to give you checkbook control over your deals and investments.

Rocket Dollar Self-Directed IRA with checkbook control  details:

  • After your IRA is created, a trust is created. The address of the trust will be your home address or whatever address you signed up with Rocket Dollar.
  • The IRA is the single member of the trust, and you become the trustee.
  • All investments are below the trust bank, which acts as the "umbrella" over all of your investments.
  • You can manage investments out of the trust bank account at our partner bank, Bank United

Rocket Dollar IRA Structure

What about the deal review process?

With full checkbook control, you are the party with final approval on deals as manager of the trust.

This allows the customer much more freedom to invest quickly, and complete their own paperwork, but heightens their responsibility to self-manage their account and avoid prohibited transactions or investments.

How is the checkbook IRA different from other Self-Directed IRAs?

This is different than IRAs without the Trust and Trust Bank Account. Typically, a trust company will hold the asset FBO (for benefit of) your Traditional or Roth IRA. Rocket Dollar calls this a “Direct Custody IRA” at signup. In this account, the custodian will review your initial investment or capital call paperwork, (typically deal reviews and executions are 24 hours) and once it is satisfactory, send a wire according to wire instructions. 

Rocket Dollar can assist you with learning how to use your checkbook IRA, and how to title your investments in the name of the trust, but we cannot assist with some key functions, like sending wires, or filling out paperwork for your investment.

Why does Rocket Dollar use a Trust? I’ve heard of an IRA LLC as well.

Rocket Dollar has sold and created IRA LLCs for many customers in the past. In 2024, Rocket Dollar moved to selling and setting up IRA Trusts for clients for a few reasons

  • LLC Taxes in California, starting at $800 a year, can increase costs for California residents and other state investors targeting investments in California.
  • Reporting Requirements for Beneficial Ownership have increased, which adds extra LLC compliance
  • LLCs have additional maintenance costs.
  • Customers needing an LLC can still create their own. The IRA Trust would then be the 100% owner and investor in the LLC.

What about the Self-Directed Solo 401(k)?

The Rocket Dollar Self-Directed Solo 401(k) utilizes a retirement trust. This allows similar checkbook control abilities.

See our IRA account

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