Rocket Dollar Knowledge Base

What is checkbook control?

Checkbook control is making an investment is as simple as writing a check, swiping a debit card, sending a wire transfer or EFT from a trust account or the LLC’s business checking account.

How is checkbook control different than normal retirement and trading platforms?

If you bring a special, new, or alternative investment to your typical brokerage platform, platforms can charge exorbitant fees or sometimes refuse to hold the investment. They could also change their position on that investment with their compliance team years later.

Due to the unique structure provided by your Rocket Dollar IRA LLC or a Solo 401(k) retirement trust, you take the control over the deal review process

How do I get checkbook control with a Self-Directed IRA?

With an LLC we will provide you with the LLC articles of incorporation, LLC operating agreement and an EIN so you can take the forms to your bank and open a business bank account. You’ll have checkbook control of the bank account. For a Self-Directed IRA we typically open up IRA with an LLC. We will provide you with the LLC articles of incorporation, LLC operating agreement and the LLC’s EIN so you can go to a bank of your choice and open a business checking account. The LLC is owned by your IRA.

How do I get checkbook control with a Self-Directed Solo 401(k)?

For a Self-Directed 401(k) we will provide you with the plan documents and EIN document so you can go to a bank of your choice to open the appropriate number of trust accounts.

In most cases, you’ll need to open two trust accounts: one for pre-tax dollars and a second for Roth dollars. With the trust accounts, you will have checkbook control. It’s important to keep pre-tax and Roth funds separate.

If you’re going to buy or hold real estate inside your Self-Directed solo 401(k) you may opt to create an LLC inside your solo 401(k) for an added layer of liability protection.