Great video. Concise and clear! What it comes to is if a person has "clear" ideas about the income opportunity (ROI) AND s/he has enough past experiences in that area AND understands the risks inside out then SDIRA / Checkbook IRA would work fantastically! For the most folks, though, they would be better off not touching their current IRA and just invest in SP500. SP500 on avg returns 10% a year. Unless your SDIRA's income opportunity can make more than that year in and year out, it can be quite a headache and flat out risky. For many folks including myself, Retirement Account is all we've got for our retirement. You buy rental properties and legal issues arise then.. you may lose a huge chunk of your retirement fund.
Great video. To the point which I like. My question is this: how do I do a self-directed Ira LLC for cryptocurrency? Or to ask the question differently, how can I be the LLC manager and also be the custodian using cold storage?
Hi Cliff, thanks for the nice comment. To set up a Self-Directed IRA/LLC for Cryptocurrency you would go through the process of setting up an LLC then opening up a Crypto IRA. You can hold your crypto keys under your IRA/LLC. Or you can open up a Crypto IRA and Gemini offers cold storage for a fee. But they hold on it on their end.
@@MatSorensen Great Video! Just to clarify on the Self-Directed IRA/LLC for Crypto. After setting up an LLC can you use a crypto exchange of your choice to hold and do trading also? or does it have to be someplace like iTrust Capital? Looking for some clarity. Appreciate it in advance. Keep up the great content!
@@djdarse You can use a company of your choice. Many clients have used the typical companies like coinbase, krakken. We've had clients use Bittrext and ErisX too. We set-up the self-directed IRA and the LLC and then you can open an institutional account with the LLC. If you want to just trade fro the IRA, our company Directed IRA has a Crypto IRA where your IRA can trade crypto directly with a Gemini trading account (your IRA owns a gemini trading account you control).
I understand that the LLC manager cannot make repairs on the property. Can the manager make repairs on the property if they are owner and operator of a separate business that does?
If I did do the LLC and owned a property, and funded maintenance out of my personal checking account, could I THEN do the work myself? Could I re-paint myself? could I take the trash out myself? how would the IRS even enforce something like that? Or is it simply limited to enforcing "you cannot pay yourself from the IRA/LLC do do labor?"
If the SDIRA is contribution limited, how do you get $40-$50k in it to transfer to the IRA/LLC for a down payment on an REI rental? Also, how do you get outside investor cash into the IRA/LLC?
To get $40-$50k in to an IRA/LLC you would have to transfer from an existing retirement account like a 401(k). To get outside investors you could form a multi-member IRA/LLC.
@@MatSorensen Bummer, if I have a 401(k) but it's tied to my current job I guess I'm SOL on that side. In regards to a multi-member IRA/LLC, can you add/remove members at will when investors come and go or is who you put in there set in stone at formation? Thanks for taking the time!
Excellent Video, If I was to purchase multiple properties in multiple states where would you recommend the LLC be located? Let's say Idaho, Florida and TN would be the investment properties. I currently live in CA.
We would recommend getting your LLC in California especially if you do any deals there. I know the $800 is painful each year but it's a lot better then paying any penalties later. But you can work it out to have it in another state if you set it up correctly.
Hey there, remember when you buy with your SDIRA, the IRA is the owner of the property, not you, it's the IRA. Also, remember, that's a prohibited transaction. I have a chapter dedicated to that in my handbook matsorensen.com/product/sdira-handbook/
Thank you for the great info, but I do habe a question. What if my IRA LLC enter into a partnership with a regular person. The partnership (LLC) buy a property that need rehab. Would my partner able to work on the property?
@@MatSorensen Thank you sir! I’m planning a change that will allow me to roll over my 401K into an SDIRA so I will be contacting you when this happens.
I already have a Roth IRA. Is it possible to convert it? Also are you allowed more than one Roth IRA? I am over the income requirements...Am I still eligible to do a back door IRA even if I already have a ROTH?
You can roll over your existing IRA account(s) to your SD IRA. Rewind to 1 min 7 seconds. You can have more than one Roth IRA although I don't know why you would want more than one. Just roll everything into one for ease. Matt and Mark do a video on what's called the backdoor Roth. In essence, you make a nondeductible contribution to your IRA and then convert it to a Roth. In 2023, the limit for both deductible and non-deductible IRA contributions is $6,500 ($7,500 for those age 50 or older). There is NO income cap on making nondeductible IRA contributions, just the amount of contribution. So, if you make too much $ to go through the front door, use the back door. It's 2 steps. If you have a side hustle or existing LLC, there is a way to contribute as much as $66,000 into your Self-Directed Solo 401k... and if you are over 50, add another $7,500. Solo 401Ks can also be paired with LLCs, which do offer more protection. 401Ks cannot be garnished or liquidated in a lawsuit. IRAs can.
Can I form an IRA/LLC and use the LLC as a consulting company? The consulting company will have revenues and expenses, are you saying in this way no taxes need to be reported for this LLC?
Your LLC can invest in a consulting company run by someone else. You cannot create your own consulting company and let your IRA/LLC invest in it. A violation of IRS rule.
Hi Byron, yes you can own 19% or any percentage of an LLC. Just remember that whatever percentage you put in you have to stick to that percentage. Let's say you put in 20% of $100,000 in an LLC ($20,000). If you need to put more money in at some point say another $10,000 total. You have to put in 20% of that ($2,000). And by you, I am referring to your IRA/LLC.
![Why do you need an IRA/LLC.. [everything you need to know]](http://i.ytimg.com/vi/qGIaTKBKSbA/mqdefault.jpg)
![Why do you need an IRA/LLC.. [everything you need to know]](/img/tr.png)
Great video. Concise and clear! What it comes to is if a person has "clear" ideas about the income opportunity (ROI) AND s/he has enough past experiences in that area AND understands the risks inside out then SDIRA / Checkbook IRA would work fantastically! For the most folks, though, they would be better off not touching their current IRA and just invest in SP500. SP500 on avg returns 10% a year. Unless your SDIRA's income opportunity can make more than that year in and year out, it can be quite a headache and flat out risky. For many folks including myself, Retirement Account is all we've got for our retirement. You buy rental properties and legal issues arise then.. you may lose a huge chunk of your retirement fund.
Just stumbled upon your video. Thanks for sharing. Subscribed!
Just found your channel. Excellent content - another sub for you sir!
Great video. To the point which I like. My question is this: how do I do a self-directed Ira LLC for cryptocurrency? Or to ask the question differently, how can I be the LLC manager and also be the custodian using cold storage?
Hi Cliff, thanks for the nice comment. To set up a Self-Directed IRA/LLC for Cryptocurrency you would go through the process of setting up an LLC then opening up a Crypto IRA. You can hold your crypto keys under your IRA/LLC. Or you can open up a Crypto IRA and Gemini offers cold storage for a fee. But they hold on it on their end.
@@MatSorensen Great Video! Just to clarify on the Self-Directed IRA/LLC for Crypto. After setting up an LLC can you use a crypto exchange of your choice to hold and do trading also? or does it have to be someplace like iTrust Capital? Looking for some clarity. Appreciate it in advance. Keep up the great content!
@@djdarse You can use a company of your choice. Many clients have used the typical companies like coinbase, krakken. We've had clients use Bittrext and ErisX too. We set-up the self-directed IRA and the LLC and then you can open an institutional account with the LLC. If you want to just trade fro the IRA, our company Directed IRA has a Crypto IRA where your IRA can trade crypto directly with a Gemini trading account (your IRA owns a gemini trading account you control).
directedira.com/cryptocurrency/
I understand that the LLC manager cannot make repairs on the property. Can the manager make repairs on the property if they are owner and operator of a separate business that does?
Great video. Can the Checkbook IRA fund, invest, or provide a loan to my S-Corp?
If I did do the LLC and owned a property, and funded maintenance out of my personal checking account, could I THEN do the work myself? Could I re-paint myself? could I take the trash out myself? how would the IRS even enforce something like that?
Or is it simply limited to enforcing "you cannot pay yourself from the IRA/LLC do do labor?"
Both of these strategies would create prohibited transactions. You need to hire a 3rd party as it’s an investment.
If the SDIRA is contribution limited, how do you get $40-$50k in it to transfer to the IRA/LLC for a down payment on an REI rental? Also, how do you get outside investor cash into the IRA/LLC?
To get $40-$50k in to an IRA/LLC you would have to transfer from an existing retirement account like a 401(k). To get outside investors you could form a multi-member IRA/LLC.
@@MatSorensen Bummer, if I have a 401(k) but it's tied to my current job I guess I'm SOL on that side. In regards to a multi-member IRA/LLC, can you add/remove members at will when investors come and go or is who you put in there set in stone at formation? Thanks for taking the time!
Can you turned your current rental property into SDIRA?
Excellent Video, If I was to purchase multiple properties in multiple states where would you recommend the LLC be located? Let's say Idaho, Florida and TN would be the investment properties. I currently live in CA.
We would recommend getting your LLC in California especially if you do any deals there. I know the $800 is painful each year but it's a lot better then paying any penalties later. But you can work it out to have it in another state if you set it up correctly.
What is the limit to contributing to IRA? Real Estate is big numbers to do transactions. What to do in that case?
Great Information.
Can I buy a retail store with SD IRA and also be the manager of the store?
Hey there, remember when you buy with your SDIRA, the IRA is the owner of the property, not you, it's the IRA. Also, remember, that's a prohibited transaction. I have a chapter dedicated to that in my handbook matsorensen.com/product/sdira-handbook/
Thank you for the great info, but I do habe a question. What if my IRA LLC enter into a partnership with a regular person. The partnership (LLC) buy a property that need rehab. Would my partner able to work on the property?
You have to make sure you don't create a prohibited transaction. You can use chapter 4 as a resource from my book "The Self Directed IRA Handbook".
Can the LLC be an international created on for purchasing international properties?
You would create the IRA/LLC in the US and invest in international properties. That can work.
@@MatSorensen Thank you sir!
I’m planning a change that will allow me to roll over my 401K into an SDIRA so I will be contacting you when this happens.
Liked and Sub'd ! keep growing the channel bro!
Thx Jonathan.
I already have a Roth IRA. Is it possible to convert it? Also are you allowed more than one Roth IRA? I am over the income requirements...Am I still eligible to do a back door IRA even if I already have a ROTH?
You can roll over your existing IRA account(s) to your SD IRA. Rewind to 1 min 7 seconds. You can have more than one Roth IRA although I don't know why you would want more than one. Just roll everything into one for ease. Matt and Mark do a video on what's called the backdoor Roth. In essence, you make a nondeductible contribution to your IRA and then convert it to a Roth. In 2023, the limit for both deductible and non-deductible IRA contributions is $6,500 ($7,500 for those age 50 or older). There is NO income cap on making nondeductible IRA contributions, just the amount of contribution. So, if you make too much $ to go through the front door, use the back door. It's 2 steps. If you have a side hustle or existing LLC, there is a way to contribute as much as $66,000 into your Self-Directed Solo 401k... and if you are over 50, add another $7,500. Solo 401Ks can also be paired with LLCs, which do offer more protection. 401Ks cannot be garnished or liquidated in a lawsuit. IRAs can.
Can spouse and I pool solo k money into single LLC?
Thank You !!
Can I form an IRA/LLC and use the LLC as a consulting company? The consulting company will have revenues and expenses, are you saying in this way no taxes need to be reported for this LLC?
Yes but you can't be the consultant. Your siblings, parents, or children can't be either. I think there are other restricted people too.
Your LLC can invest in a consulting company run by someone else. You cannot create your own consulting company and let your IRA/LLC invest in it. A violation of IRS rule.
Can I own say only 19% of the LLC and not 100% ?
Hi Byron, yes you can own 19% or any percentage of an LLC. Just remember that whatever percentage you put in you have to stick to that percentage. Let's say you put in 20% of $100,000 in an LLC ($20,000). If you need to put more money in at some point say another $10,000 total. You have to put in 20% of that ($2,000). And by you, I am referring to your IRA/LLC.