Special Advisor Services

 

Many self-directed IRA custodians do not provide custody for single member "checkbook" LLCs. If they do allow it at all, they may put restrictions on the customer account to limit their liability. One of the reasons that custodians do not like these types of investments is that there is no transparency into the investments held in the account.

Customers want access to this type of investment. They want more control, they want convenience and they want privacy protection.

Custodians want to provide custody for single member LLCs as long as they can do it with the comfort that they can limit their liability and the liability of the customer.​

We have a solution to this problem.

Special Advisor Services

Innovative Advisory Group's Special Advisor Services

​Self-directed IRA custodians require that each investment they provide custody for must meet certain criteria. This criteria is to ensure that the account holder does not run afoul of the rules and regulations outlined in the Internal Revenue Code (IRC).

Accepting custody for single-member "Checkbook" LLCs has been a problem for a number of custodians. If the holdings of the single-member LLC are not transparent, then how can the custodian know that the asset is compliant with the IRC? This puts an increased potential liability on the custodians if they accept this asset.

In the past, many self-directed IRA custodians answered this problem by altogether denying single-member "checkbook" LLCs as an acceptable asset at their company. Fortunately, after a number of discussions we have convinced a few of them to allow this asset again.

Our solution solves the needs of both the custodian and the customer.

Why is a Special Advisor Needed?​

We call this solution Special Advisor Services. Here is how it works:

The customer wants to invest in a single member LLC​ to buy a single family rental property (although this applies to any assets that are permitted by the IRC). The custodian is weary of this type of transaction because they have zero visibility into the transactions of the LLC. The custodian cannot be sure if the customer is creating a prohibited transaction.

Our solution solves this problem by creating a bridge between the customer and the custodian. This bridge lets the custodian feel at ease. It provides them with a level of comfort where they can once again provide custody for single member LLCs without the fear of the customer creating a prohibited transaction.

This title of special advisor is bestowed upon Innovative Advisory Group's financial advisors as both experts with self directed IRA rules and regulations, but also as investment advisor fiduciaries. Through our extensive experience, we have proven ourselves to be experts with self directed IRA investing, Checkbook LLCs, and other alternative investments. As a Special Advisor, our role is to guide the client through the process of setting up a self-directed IRA account, ensuring compliance with the IRC, maintaining ongoing compliance standards, valuations, and other requirements of maintaining this asset type in a self-directed IRA.​

If you are looking to set up a single-member "checkbook" LLC and your custodian is not willing to allow it at their company, ask us if we can assist you. We have relationships with many of these custodians. They are familiar with our high standard of care and compliance with the IRC.​

If you are interested in learning more about how we can help you with your self directed IRA investments as a Special Advisor, contact us to learn more about this innovative service.