Rocket Dollar Knowledge Base

What is checkbook control? How is it different from a Custodial IRA?

Checkbook control (Checkbook IRA) is making an investment as simple as writing a check, swiping a debit card, or 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 if they don't hold similar investments already. They could also change their position on that investment with their compliance team years later, leaving you in a bind.

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

Custodial IRA vs Checkbook Control IRA


I want to hold some other assets, but I still want stocks and bonds too. Can I do that?

Yes. You simply have to open a corporate trading account for your LLC, or open a trust account trading account.

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

With an IRA 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.

Money moves from the IRA>IRA LLC> LLC Bank Account. You can send the money to and from this bank account. You send money out to any investment you wish, then return capital, earnings, and related cash once you sell the investment, just as cash returns to your IRA from a stock or bond purchase.


Basic IRA Flow Diagram-2

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

For a Self-Directed Solo 401(k), we will provide you with the plan documents and EIN document so you can go to the 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 with the corresponding bank account. 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. Your trust account can then become the 100% owner of that LLC.

Structure of Solo 401(k)