California Residents with a Self-Directed IRA. How should I structure it and what are the fees?

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California residents can choose a Self-Directed IRA with or without an LLC. A Self-Directed Solo 401(k) does not need to register with the Secretary of State or the Franchise Tax Board.

 

California residents can contact Rocket Dollar for a Self-Directed custodial IRA without an LLC. You can hold one asset with a Rocket Dollar Gold Account for $600 to sign up and $30/month.

If you invest in one asset, you enjoy the same pricing as all Rocket Dollar Gold Customers. $600 one-time signup fee, and then $30/month. Please contact our sales team if you aren't sure which structure is best for you. 1-855-762-5383. This structure could have additional requirements for deal approval, and forgo the benefits of an LLC, but avoids high LLC fees from the California state government.

 

Can I buy a Rocket Dollar with direct custody at Core pricing for $360 and $15/month?

No, not at this time. 

 

How does the pricing compare for my options?

IRA LLC for a California Resident

  • $360 Core account signup (one time)
  • $15 per month compliance fee
  • $800 minimum each year paid to California (please check with the California Franchise Tax Board for the exact amount) Note: an LLC from outside California typically still incurs the FTB fees. 
  • $70 one time fee to register your Rocket Dollar Colorado IRA LLC as a foreign entity in California (please check with the California Secretary of State's Office for the exact amount)

    California IRA Flow Multiple Investments Diagram (1)

What reporting requirements will I need to do for my LLC?

Direct Custody IRA (without an LLC)

(Fees updated July 2020)

  • $600 Gold account signup fee (one time)
  • $30 per month
  • Per Investment fees: Customers will pay $200 per additional investment plus $100 annual per investment.
  • The Gold account covers four wires per year
  • Premium support and expedited transfers
  • Unlimited number of investments with our custody partner, pending the custodian's deal review process
    • Assets our custody partner will not approve:
      • Cryptocurrency
      • SAFE Notes
      • Except for Perth Mint Certificates, any asset not based in the United States
      • Any direct personal loans to another individual

Direct Custody Flow V2 Black KB

  • Additional fees you may incur with the custodian:

    CA Custodial IRA Fee Sheet

I'm ready to get started with direct custody. What's next?

  1. Sign up for a Rocket Dollar IRA at rocketdollar.com/signup
  2. Select DIRECT CUSTODY account for $600 and $30 a month.

 

What is the timeline?

With a deal review, even with a Gold Account, the Direct Asset could take up to 3 weeks. 

 

Can I still purchase an asset?

Keep in mind that you will have to complete a deal review with our custody partner if you choose a direct custody IRA. Because our custody partner has custody of the asset they can decide if they will accept the investment or not.

Currently, at this time, our California custody partner is not accepting deal reviews for Cryptocurrency and will not hold those investments. You would need to use our LLC product.

If you still want to purchase crypto, you can always do so in California but at this time must pay the $800 yearly franchise board tax fee and register the Colorado LLC that Rocket Dollar would open for you. We are continuing to work on solutions for Crypto investors.

 

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

A Self-Directed Solo 401(k) is a trust, not an LLC, and thus the extra LLC considerations do not apply. California residents can enjoy the same Rocket Dollar Core $360 signup and $15 per month fee, with no new investment fees. This can be a great alternative if you qualify.

 

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