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Roth IRA LLC using Schwab
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1 Reply
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Can a Roth IRA LLC be created to have the LLC hold allowable alternative investments (e.g. real estate or private equity), but still have the ability to invest in typical investments (e.g. stocks, ETFs, options, etc.) at Schwab? I found the page for the Schwab Solo 401k (https://www.mysolo401k.net/solo-401k/schwab-solo-401k/), but this appears that it relevant for a solo 401k vs. an IRA LLC. I currently have a Roth contributory IRA already at Schwab and I would like to keep investing through their platform for typical investments since I know it well, while having the ability to invest in alternative investments as well.
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While it is certainly acceptable to invest Roth IRA LLC funds in both alternative investments as well as brokerage-type investments (e.g. stocks, bonds, mutual funds, ETFs, etc.), practically speaking it can be difficult to do so as the brokerage firms that offer brokerage accounts for entities such as LLCs typically have a very high balance requirement. For this reason, it may be best to simply open a Roth IRA brokerage account at the brokerage of your choice (e.g., Vanguard, Fidelity, etc.) for the brokerage-type investments and then use the IRA LLC for alternative investments (e.g. real estate, notes, etc.). In that case, one would need to work with the self-directed IRA custodian/trust company (e.g. Forge Trust) to transfer the funds from the Roth IRA account to the new Roth IRA at the brokerage of your choice (please note that the funds cannot transfer directly from the LLC to the new Roth IRA at the brokerage of your choice).
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