Is anyone using a Checkbook IRA?

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  • Hi All,

    Has anyone found a good Checkbook IRA solution?
    Can they be set up under a ROTH account?

    In researching the options on Google, there are many options with varying and unclear fee structures.

    I’m trying to use some 401k funds to buy an investment rental property, but they only allow a 50% loan against the IRA. I’m wondering if a checkbook IRA would allow more than 50% investment in a property.



    HI JP

    I cashed out my IRA and Roth accounts because I don’t like the government telling me how I can and cannot invest MY money.

    It is my understanding that even if you have a checkbook IRA, you still have to follow all of the governments stupid rules for how to invest your money. The checkbook part makes it faster to get access to YOUR money but it is the same rules.

    We’ve done a few coaching calls about investing with a checkbook IRA.

    Quincy Long would be someone to ask

    What do you guys think about whole life and universal life policies? Anyone familiar with the “infinite banking” concept?


    I have a Checkbook IRA but they can be dangerous if you aren’t educated on all the Prohibited Transactions and other rules like how you can’t pledge your IRA as collateral.

    I have multiple IRAs (Traditional, Roth and CESAs) in my IRA LLC. I think if you have a 401k that is with an employer that you currently work with that there isn’t a way around the 50% loan restriction. Only once you are no longer working at the company can you do a Rollover IRA that could be apart of your Checkbook IRA LLC.

    Like Jackie said the Checkbook IRA doesn’t get you around any IRS rules and the responsibility is on you to know them all.



    I have universal life “infinite banking” policies for myself and my wife. The big advantage in my mind is that if you need to take out any money you can take a loan against the policy vs. taking a withdrawal so your account can theoretically grow faster and last longer than if you put the same amount of money into a 401(k), IRA or into Mutual Funds/Stocks. Plus since we use the direct deposit option we essentially are paying ourselves first since the money is just taken out every month.

    Some disadvantages are that you need to qualify health wise since it is life insurance. Your advised to put $1,000 a month minimum which may or may not be a big deal for your situation. You are locked into the payments once it starts and there is about a 10 year period before your cash balance equals the amount of money that you put in due to all the fees and commissions. And there is no tax free/deferred advantage. So it is a long term play.

    We opened them up partly because of all the restrictions on IRAs like Jackie discussed.


    Thank you for that response Brad. I attended a John Schaub seminar recently and he made a passing comment that if he were to go back in time and do it all over again, he may have become an insurance salesman because of all the money they make; this would of course been a supplement to building wealth through real estate. I’m considering making that transition because very few people I talk to about real estate are potential real estate clients, however nearly all of them could use a good life insurance policy and some financial planning to go along with it. I figured if some of you here feel like they are good products then I can speak with that much more certainty and clear conscience that these are products my clients should have.

    Thanks, Jackie & Bradley.

    Reached out to Quincy & he doesn’t setup Checkbook IRAs. I’ll dig through the coaching calls to learn more.

    I’ve got the funds in a 403b now so can’t pull it out without penalties. Just looking for another way to grow use the funds and minimize administrative fees. It doesn’t make much sense to me to pay $300-500/year in management fees that have multiple layers of paperwork, if a checkbook IRA costs less/yr and I have more control. The rules are always an extra headache, but are mostly straightforward.



    JP, contact Jack Shea –

    IRA Checkbook Control Trust Creation Services

    Maybe I’m wrong, but it is my understanding that when you have a checkbook IRA, you still have to pay all the high administrative fees to the self-directed IRA company. When you have a checkbook IRA, it allows you to invest faster instead of sending a letter of direction to the administrator to issue a check. To convert to a checkbook IRA, you still have to report the VALUE of the IRA investments and pay the usual fees associated with that value even though none of the money is controlled by the self-directed IRA company. It’s a racket! Maybe Jack Shea knows a way around the high annual fees. Let us know what you find out.

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