You may be asking yourself, what is a checkbook IRA? The answer to that question is quite simple. This IRA gives you the access to your funds at all times. They are set up for businesses, such as LLCs and partnerships, to give business owners access to their accounts when they are needed. With proper guidance from the IRA owner, these accounts can be quite helpful to those in need of funds for business requirements. Keeping proper documentation, accounting and records keeping are musts when dealing with these types of IRAs.
Those who choose to invest in checkbook IRAs are looking for the advantages involved. Yes, they allow you to have more access and control of the investments your account becomes involved with. In many cases, this type of IRA is used by those who are interested in taking on promissory notes, real estate or precious metals as the main source of their investing options. With this type of IRA, you have more control, which means fewer fees paid out and less guidance, making you the main decision maker.
The disadvantages of a checkbook IRA can, in some cases, balance out the advantages. If your plan is to use funds for personal uses, such as bills or shopping, this type of plan isn’t for you. The use of this type of IRA is solely for the purpose of your business. Another factor to consider is the involvement of your investment company. Trying to keep track of all your investments can be difficult at times. This is why ensuring you have the right investment company to help you along the way is crucial for success with these types of retirement plans.
If you would like to learn more about a checkbook IRA, visit Mountain West IRA on their website or call 866-377-3311.