How is the Self-Directed IRA structured?

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There are three layers to your Rocket Dollar Self-Directed IRA: An IRA retirement account, an LLC, and an LLC bank account.


The three layers of your account will be:

  1. An IRA, which will serve as a wrapper to hold tax-advantaged retirement dollars (Traditional or Roth) at our custody partner.
  2. An LLC, which will be titled with your first name initial, and last name unless otherwise requested. (FLAST RD LLC) You will be appointed the manager of this LLC. 
  3. An LLC bank account, which will allow you to transact with checkbook actions and with a debit card similar to a business LLC bank account. All monies and investments here must remain separate from personal assets and be for the purposes of your IRA. You will use and make all transactions with our preferred bank partner.

Basic IRA Flow

How does this structure help me gain checkbook control?

When you have an LLC and LLC bank account holding the assets in your account, you have taken the custodian out of the deal review process.

Your LLC bank account can be directed at any public or private compliant investment you wish to target, and you are not constrained by a menu of funds or a deal approval process with the custodian. The deal approval process can often lead to the rejection of certain investments because they are a hassle for the custodian, not because they are prohibited by the IRS.

For more on the benefits of the IRA and LLC structure, click here.

Who is the custodian?

You can read more about our specific custodian partners here. 

When you have a Self-Directed IRA at Rocket Dollar, our custody partner will have an IRA structure. This IRA structure contains the legal framework to hold tax-advantaged assets. The IRA is then the 100 owners and investors of your LLC, which acts as an umbrella to hold all of your assets.

Fiat cash custody is also assisted by our partner bank. Rocket Dollar's partner bank will hold your cash assets, and also be sending out money for investments. Our bank partner is FDIC insured. 

Rocket Dollar leans on partners for custody, but handles your service, questions, pricing arrangement, and gives you all the tools for your Self-Directed IRA. 

See our IRA account

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