Below is a guide to getting started investing with your IRA LLC.
A self-directed IRA LLC holds one investment: the LLC. See more here. The LLC is a single-member, manager-managed LLC.
The account owner is the Manager of the LLC, is the responsible party for deal review and fund investments, and is the signer on the LLC's bank account.
Prior to sending any funds ensure your investment is not a prohibited transaction/restricted. You cannot transact with any lineal family members. See more here. Also, make sure you understand if your investment triggers Unrelated Business Income Tax (UBIT) or Unrelated Debt-Financed Income (UDFI). Investments in operating businesses that do not pay corporate taxes or investments into real estate development may trigger UBIT. Debt financed real estate using non-recourse loans from a bank or private debt from a private lender may trigger UDFI.
Your IRA-owned LLC should be the investor of record on all investments made with the IRA LLC. All deal or investment paperwork should clearly reflect that. Use the IRS SS-4, available on your Rocket Dollar Dashboard, to find the EIN (Tax ID Number) for your LLC.
If your investment issuer asks you to provide a W-9, see our article here.
If you need the LLC Operating Agreement or Articles of Incorporation, please log into Rocket Dollar and click on 'Documents'.
When signing deal documents, subscription documents, or opening accounts, sign as "John Doe, Manager" or "John Doe, MGR." This is to be clear that you "the person" is not signing as the investor, but you are signing in the capacity of "the Manager" of the investor of record: the LLC.
However, if there are fields asking for information about the 'Beneficial Owner' or 'Control Person', then you should enter your personal information. You can conduct administrative and investment oversight tasks for your IRA LLC, i.e. pay bills, sign documents, screen tenants, or show a property (you cannot take a commission).
Funding your IRA with new Contributions, Rollovers, & Transfers
All new IRA contributions, rollovers from qualified plans such as employer-sponsored 401(k) plans, and transfers from other IRAs must be processed at the IRA level, not the LLC.
Customers can make new contributions to their IRA via check, wire, or ACH. ACH must be initiated from the customer's personal bank account. Email email@example.com to receive the contribution form and follow the instructions on the contribution form.
The initiate a rollover or transfer, simply click the "Add Funds" button in the Rocket Dollar Dashboard, fill out the form, and attach the most recent statement from the outgoing financial institution. The "Add Funds" feature is available when your account has been opened.
After funds clear the IRA, Rocket Dollar will direct the custodian to contribute the funds to the LLC. Then, you can wire funds, write a check, etc. to fund your investments.
Do not contribute funds directly to the LLC.
Funding your Investments via ACH or Checks
Setting up your investment as an ACH/Bill Payee with our bank partner is free. You can also ask for six free starter checks. Most clients use either of these methods to fund their first few investments.
Funding your Investments via Wire Transfer
To send an outgoing wire, please log into your Solera account. Then, click Messages (upper right), then New Message, then selects your account in 'Regarding', and select Wire Transfer in 'Category'. The investment issuer, sponsor, or broker will provide you with their wire instructions. Enter the investment issuer's bank account details in the message section.
For domestic wires, the daily wire cut-off time is 2:00 PM (MT).
The domestic wire fee is $25.00 per outgoing transfer.
For international wires, the daily wire cut-off time is 1:30 PM (MT).
The international wire fee is $50.00 per outgoing transfer.
Funds never pass through Rocket Dollar directly.
Ongoing Responsibilities / Annual Fair Market Value
The Rocket Dollar Investment Tracker, accessible from your Rocket Dollar Dashboard, is for annual fair market value (FMV) reporting.
Foreign LLC Registration
If you're going to invest in rental real estate, fix/flip properties, or any other active trade or business, we recommend you speak with an attorney to determine whether or not you need to register your IRA LLC as a foreign LLC in the state where you are doing business. If there are fees associated with the Foreign LLC registration you are responsible for paying them separately from your Rocket Dollar fees.
If you have a Traditional IRA, are age 72 1/2 or above, you must take Required Minimum Distributions (RMD)? You will need to make sure you have enough cash in your account to meet the RMD. RMDs must be taken at age 72 1/2 and above per the Secure Act.