Checkbook Crowdfunding Investments

Self-directed retirement accounts – Checkbook IRAsCheckbook 401k plans, Checkbook QRPs, Checkbook HSAs, and Checkbook DB Plans – can participate in Crowdfunding Investments.

Whether you’d like to pursue Equity Crowdfunding or Debt-Based Crowdfunding, there’s a world of opportunity available to your self-directed accounts.

Popular crowdfinancing investments are Real Estate Crowdfunding, Peer-to-Peer Lending, Marketplace LendingP2P Lending, and Litigation Crowdfunding.

If you’d like to set-up a Crowdfunding IRACrowdfunding Solo 401kCrowdfunding Defined Benefit Plan, Crowdunding QRP, or Crowdfunding HSA – this page provides the compliance information you need to do so.

What is Checkbook Retirement Account Crowdfunding?

Crowdfunding is the practice of funding a project or venture by raising small amounts of money from a large number of people via the internet. There are investment crowdfunding options for both accredited and non-accredited investors that want to diversify their portfolios into an array of alternative assets.

  • Use your Checkbook Retirement Account to easily and cost-effectively invest in multiple crowdfunding investments.
  • Diversify your portfolio while helping deal sponsors and borrowers get the funds they need.

Why use Checkbook Control?

  • Flexibility: With Checkbook Control, there’s no need to for a custodian to approve and process investments.
  • Cost-Savings: With Checkbook Control, you only pay an annual low-fee – no matter how many crowdfunding platforms you use or investments you participate in.

Checkbook Crowdfunding Compliance

Be aware of prohibited transactions. Avoid investing an IRA with entities controlled by the IRA owner or other disqualified persons as defined in Section 4975 of the Tax Code.

The investor is the Checkbook Retirement Account. All paperwork and documentation should be in the name of the investing entity, which may be your IRA-LLCSolo 401k, or Defined Benefit Plan.

UBIT, UBTI, UDFICertain investments may result in taxable income to retirement accounts.

No S-Corp investments for IRAs: Having an IRA as an equity partner in a business that has made an S-corp tax election would result in revocation of that business’s S-corp status.