How do I set up a checkbook controlled IRA LLC?

Options
erdocdan
erdocdan Member ✭✭
edited May 21 in Investing (Windows)

I'm using on a PC with Windows 10 64-bit.

This is type of self-directed IRA. If you're not familiar with it, you might go to Kingdom trust or advanta trust and look at what it is. Basically you start an LLC in your state. You get a business checking account. The IRA is the member when it comes to your operating agreement and you are the manager. You have a custodian in my case advanta trust in Florida. They look at all the investments that you make to make sure that they're following the IRS rules. I'd like to set it up as one account so that I can track my investments. Right now my business account has direct connect and I can see the activity there. The custodian does not use quicken so those investments have to be entered manually. The whole thing allows you to invest in alternative assets like real estate, precious metals, and many other things. Besides the usual stocks, bonds, ETFs and mutual funds and options. Anybody know anything about it?

Best Answer

  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    Answer ✓
    Options

    I'd say that if you want everything in one Quicken Investment Account then you don't set up the checking account in Quicken as a separate Account, everything that goes on with this IRA has to be accounted for inside the one tax-deferred Quicken IRA Account.

    You'll probably have to get creative with "quasi-securities" that represent these alternative assets. So if you're holding physical gold (gold bars, gold dust) for example, that becomes a "security" with the "shares" being whatever quantity that's convenient, like grams, ounces or whatever.

    Some investments of course, like crypto, can be more easily handled as they do trade in public-facing markets using denominations that can be easily entered.

    Real estate investments could be difficult to handle inside this Account but I guess if you buy a rental house that would be a separate security, the rents received would be MiscInc entries and the costs incurred would be MiscExp entries, all tied to that particular "security."

    Get creative.

Answers

  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    Answer ✓
    Options

    I'd say that if you want everything in one Quicken Investment Account then you don't set up the checking account in Quicken as a separate Account, everything that goes on with this IRA has to be accounted for inside the one tax-deferred Quicken IRA Account.

    You'll probably have to get creative with "quasi-securities" that represent these alternative assets. So if you're holding physical gold (gold bars, gold dust) for example, that becomes a "security" with the "shares" being whatever quantity that's convenient, like grams, ounces or whatever.

    Some investments of course, like crypto, can be more easily handled as they do trade in public-facing markets using denominations that can be easily entered.

    Real estate investments could be difficult to handle inside this Account but I guess if you buy a rental house that would be a separate security, the rents received would be MiscInc entries and the costs incurred would be MiscExp entries, all tied to that particular "security."

    Get creative.

  • erdocdan
    erdocdan Member ✭✭
    Options

    Thank you. I appreciate that. I was wondering if I went to the next tier up and went to quicken business if they had the ability to set up that type of self-directed IRA/LLC. I'll pull around with it and make it work. Back everything up first. Maybe start new accounts before I delete the old ones. Thanks again for the tips though.

This discussion has been closed.