Does anyone else have an IRA LLC? In this, I have my IRA Cash held with an IRS approved IRA Custodian. They have created seperate IRA Account #'s to hold my and my wife’s IRA Cash, respectively. With a special LLC Operating Agreement, I have created an IRA LLC and a have setup a LLC bank account for the LLC. I have wired much of the IRA cash from both our IRA Accounts to the LLC bank account, and since have done no investing with it - just haven’t been ready yet. In this Manager-Managed LLC setup, the IRA Account #'s are the actual member/owners of the LLC, and my wife and I are just the Managers. As the Managers, I/we have checkbook control/writing capability to invest these funds in a wide variety of investments, including real estate. So if I invested 100K into a real estate development project, and earned 15K that year, that distribution is considered just growth to my IRA investment. Of course, I we could only contribute from our own cash $4000 per year to each IRA (or whatever limits are). All that being said, this year, I’ve just setup the structure, “moved” the cash from the IRA custodian account to the LLC bank account, and have not written a check to invest in anything yet. My question is… Does anyone know what type of IRS form I would need to use to file this as an informational thing? Nothing has happened, the IRA money’s have not changed in value up or down, and the LLC that holds the IRA funds has not been active in any way from an investment perspective. Effectively, the LLC has just been stagnant even though the LLC holds my IRA cash in it. Does anyone know what type of form I would need to use, and/or if you even need to file a return for an IRA LLC? Thanks
LLC will file a partnership return (1065) and send K-1’s to the administrators of the IRA’s. From this they will value the IRA and send the form to IRS (form 5968 or something like that). Note that if the IRA has UBI (rent income for example) then the IRA will have to file a trust return and pay some excise tax. always best to hold capital investments in the IRA/LLC to avoid this.
In addition to what Mark has said, the LLC is subject to IRA prohibited transactions.