The self-directed retirement fund industry has three principal categories of service providers: set-up organizations; custodians; and administrators like Adelphi Retirement Management.

Set-up organizations, also known as "checkbook IRAs," will create a legal framework (often a limited liability company) for the IRA's owner to use in making their investments. It is rare for a set-up organization to provide on-going support regarding any proposed transactions or assist with any regulatory filing requirements. Unfortunately, investors are left to themselves to navigate their own investments with no proper guidance adhering to the ERISA ACT or the IRS regulations.

Custodians hold title to the assets of self-directed IRAs. These companies are principally federally regulated trust companies and commercial banks. Only a very small number of commercial banks and trust companies, however, are interested in holding title to assets other than listed stocks, bonds and mutual funds, and it is rare for those that are willing to hold such assets to provide any significant assistance to the IRA holder. Without an established IRA LLC, you are holding title as an individual to your investments, eliminating any liability protection.

Self-Directed IRA Administrators like Adelphi Retirement Management review all proposed transactions, provide safe-harbor solutions to complex transactions and make industry experts available to their clients at no additional cost.

Adelphi can help you. Adelphi Retirement Management is a self-directed IRA administrator that co-manages the IRA and its investments with the IRA's owner. Adelphi Retirement Management will become the Administrative Manager of your IRA's assets, while you will be the "Investment Manager" of your assets. We work together as a team to ensure that your investments comply with the complex rules of the IRS and ERISA rules.

Adelphi Retirement Management will create a Limited Liability Company to hold title to all of your IRA's assets. This structure facilitates titling of your assets, and our financial reporting system enables you to manage your IRA like a business, complete with a quarterly Statement.

Adelphi Retirement Management enables you to have a transparent relationship with your IRA’s custodian. You need only to make a single phone call to Adelphi Retirement Management to initiate asset transfers, purchase or sell an asset, or effect a distribution.

Recently, several of our clients have contacted our company to discuss possibility of using IRA or 401(k) rollover funds to finance a startup business that they would receive compensation from. This is much different that using your IRA funds to invest in a startup company as a passive investor. Even thought there are several Self-directed IRA companies that promote this type of structure, it has always been our company’s stance that this would be viewed as a prohibited transaction and now an IRS memorandum confirms that position.

click to read IRS ruling