A bank account is a key part of giving your retirement funds checkbook control and holding assets. It is opened at our partner bank.
So what does the bank account do?
For the Self-Directed IRA, the business bank account is titled in the name of your LLC, and the LLC is connected to your IRA; the IRA is the single member of the LLC. The bank account, or the final layer of your account, hold funds and can send money via wire or ACH to different investments. Once your bank account sends money to an investment, your IRA now has partial or full ownership of that investment. Your account is structured with...
- An IRA
- An LLC
- LLC business bank account.
For the Self-Directed Solo 401(k), the trust is titled to your plan name via the plan documents, and the trust bank account can send funds via wire or ACH to different investments. Once your bank account sends money to an investment, your solo 401(k) now has partial or full ownership of that investment. Your account is structured with...
- Solo 401(k) plan documents
- Trust bank account
How does this benefit me?
This gives your retirement dollars the ability to be moved into investments as simply as moving cash. Instead of the custodian investing on your behalf to just different stocks, mutual funds, and bonds, you can send out money to purchase ownership into any investment allowed by the IRS in retirement accounts. You can even send money out to a brokerage or investment account; just make sure to title it correctly to your corresponding LLC or trust.
How easy is it to send money?
You can send money right from your bank account. You can send a wire transfer or ACH.
Does Rocket Dollar have control over this bank account?
No. The bank account is administered by the owner of the bank account only, as it is titled in your name as the managing member of the IRA LLC or the trustee/plan administrator for the Solo 401(k).
We want our customers to have maximum freedom of money movement, without any additional concerns about security. You should be the only one directing money movements in or out of your account.
Where is my bank account going to be opened?
Your bank account will be opened with a federally chartered partner bank, and details will be provided during your account fulfillment. This bank is also FDIC insured for cash assets but not investments, except in the case of fraud, as other banks are. For more on FDIC insurance, click here.
If you have not yet purchased an account, you can discuss our partner bank or how your assets are held with our sales team at 1-855-762-5383 option 2.
Can I use my own bank?
To maintain a smooth customer experience, our clients generally open accounts at our preferred banking partner. Because of the different features of self-directed retirement accounts, some of our customers have had difficulty getting accounts opened properly at local credit unions or some major brand banks. This can lead to frustration and longer periods to service your account, or may result in your account being closed unexpectedly because a bank's compliance department does not understand your account.
Out of all our customers, less than 5 have been able to successfully open their own bank accounts. The knowledge of self-directed bank accounts is just not there. Our preferred banking partner has a specialty in serving self-directed accounts and in turn, holding your investment assets correctly inside a retirement account.
Remember, that your personal banking assets must also stay separate from your IRA or Solo 401(k)s assets.