How do I take a distribution from my IRA-owned single-member LLC (SMLLC)?
For a cash distribution, you must complete our IRA Distribution Request form. The amount listed on the form must be sent from your LLC bank account to your Digital Trust IRA, and you will need to complete our Deposit Instructions form. Cash distributions cannot be taken directly from the SMLLC bank account; they must be processed through the IRA for proper coding and reporting to the IRS.
For an in-kind distribution from your LLC, you must complete our Single-Member LLC Distribution Request form. (Please contact support for this form.) Enter the current market value of your LLC (including all assets held and uninvested cash) at the bottom of Section 3 of the form, and enter the value/asset to be removed from the LLC in Section 4. Digital Trust will mail a releasing letter to you stating the distribution was taken, and you will receive the applicable tax forms the following year.
If the value of your SMLLC is $0.00, you must provide documentation explaining the zero value. This could include, but is not limited to, a statement, documentation of the investment going bankrupt, or a signed Letter of Intent with detailed information.
How do I complete an outgoing transfer involving my IRA-owned single-member LLC?
For a cash transfer, please have your new custodian send a transfer request to Digital Trust. You also need to send the amount requested on the form from your LLC or Trust bank account to your Digital Trust IRA and complete our Deposit Instructions form.
For an in-kind transfer of your LLC, please have your new custodian send a transfer form requesting the single-member LLC or trust be transferred in full. You will want to verify the SMLLC or trust can be held in an IRA with your new custodian prior to initiating this request.
If the value of your single-member LLC or trust is $0.00, you must provide documentation supporting and explaining the zero value. This could include, but is not limited to: a statement, documentation of the investment going bankrupt, or a signed Letter of Intent with detailed information.
How do I complete a distribution or outgoing transfer involving both my single-member LLC and uninvested cash in my IRA?
⛔️ Cash and assets cannot be sent directly to you or a new custodian from your single-member LLC or trust; this must be processed through Digital Trust first.
To begin the process, please have your new custodian send a transfer request, or submit a distribution request form. We will send releasing paperwork via mail, but any asset re-registration must be completed by the receiving party.
If you have cash in an LLC- or trust-owned bank account, the amount listed on the form must be sent from this bank account to your Digital Trust IRA along with a completed Deposit Instructions form **prior** to your request being processed.
If you chose to take a distribution of the LLC and cash, you must complete an IRA Distribution Request form and provide a Fair Market Valuation form with the current LLC value.
If the value of your single-member LLC or trust is $0.00, you must provide documentation explaining the zero value. This could include, but is not limited to, a statement, documentation of the investment going bankrupt, or a signed Letter of Intent with detailed information.