Step 1
IRA Account Opened
The first step in the MyDirect IRA process is to establish an IRA with a registered self-directed custodian
who will allow the IRA to participate in non-traditional investments. MyDirect IRA only works with IRA
custodians who will limit the fees charged to the IRA holder. Through the Self-Directed IRA LLC, our clients
will not pay ongoing asset based or transactional fees—just a simple flat annual fee.
Step 2
IRA Account Funded
Once your new Self-Directed IRA has been established with a non-traditional IRA custodian, MyDirect IRA
will request, monitor and direct the movement of funds from your previous IRA holders to your new
Self-Directed account. This process will typically take 2-3 weeks to complete and relies heavily on your
previous IRA custodian’s ability to make these transfers in a timely manner.
Step 3
LLC Formed & Operating Agreement Created
An important part of the MyDirect IRA process is to establish a Limited Liability Company (LLC) for your
IRA.This serves as the investing platform for the retirement plan and will allow true diversification not
seen through any other IRA plan. MyDirect IRA’s team will customize this entity to conform to the rules
and regulations set forth by the IRS and the Department of Labor. It is vital that you work with a qualified
and competent third party, like MyDirect IRA, to structure the LLC for you.
Step 4
LLC Capital Contribution Processed
After your newly established Self-Directed IRA has received the retirement plan’s money and the LLC has
been established, it is time to direct the initial capitalization of the LLC. MyDirect IRA’s team will direct your
new custodian to invest your IRA in the LLC, essentially trading member units (similar to stock)for cash.
Once the transaction has taken place, your Self-Directed IRA is the owner of the LLC, owning most, if not
all of its member units. The LLC holds all of the cash in the LLC checking account.
Step 5
LLC Starts Investing
Your IRA, indirectly through the LLC, is now set to begin investing in both traditional and
non-traditional opportunities. Additionally, the team at MyDirect IRA is ready to help you handle the
investments of you choice for your IRA and help you execute the transaction successfully.