An IRA LLC can be set up in both a Traditional and Roth version. Let’s take a quick look at the difference between these two platforms and then we’ll dive into the specifics of a Roth IRA LLC.
What is a Roth IRA LLC?
An IRA is a specialized investment account that encourages workers to save by offering a tax break. This tax break can come in one of two forms:
- Make a contribution to your retirement account and push off paying taxes on that contribution until you make a distribution. This setup is known as a Traditional IRA.
- Pay taxes right now and then use the post-tax funds to make a contribution to your retirement account. Then, even as the funds grow, you never have to pay taxes again. This is known as a Roth IRA.
A Roth IRA LLC adds the power of a specialized LLC to the Roth account. By establishing a dedicated LLC for your Roth IRA, you free yourself from a lot of transactional delays and fees. The LLC element allows you to open a checking account at the bank of your choice and use that checkbook to perform all of the IRA’s transactions.
