I work for a company that specializes in self-directed IRAs and Solo 401(k)s.
Checkbook control vs custodian?
Which company used?
Fees?
Checkbook control vs custodian? That would depend on what you plan on doing with your IRA. If you plan on making a couple of moves a year, it might very well be worth it to work with a custodian that charges flat rate fees.
If you plan on investing in something that will require a number of transactions such as buying a rental property, it's probably worth going with checkbook control. Checkbook control allows you to open a checking account for a company that will be owned by your IRA. On your request, the custodian will invest in that company and sends a check or wire to the bank account. You can now invest directly from the bank account without going through the custodian. It will cost more up front, but you can catch up pretty fast when compared to all the transaction fees that a custodian would charge you. Some advantages of checkbook control are:
Instant access to funds. Once the custodian send the money to your IRA LLC's bank account, you have ultimate checkbook control. You simply write a check instead of putting in a request with the custodian and waiting for them to respond.
Eliminate most custodial/transaction/maintenance fees
More freedom to invest where you want (make sure to steer clear of prohibited transactions - that'll blow up the IRA)
Which company used? I just work here, didn't actually use them yet
Fees?From what I know there are two types of fees when it comes to custodians. Either a percentage of the account, or flat rate fees. The percentage model is one that I'm not that familiar with, but it seems like this would usually be far more expensive.
The other option, will cost more up front to set up (probably between $1500 - $2000) but after that, unless you're taking more money out of the IRA (if you haven't taken it all out when you set up the llc ) you pretty much just pay the maintenance fees for the custodian's account. The custodian that we work with charges a bit under $200 annually for that. Some people use this option to invest in cryptocurrency because they need immediate access to the money whenever they decide to invest or sell.
Any other questions?
