Checkbook IRA vs. Custodian-Controlled IRA: Speed Still Wins

One of the biggest factors that affects how you invest with a self-directed IRA is how fast you can move. That’s especially true if you’re buying real estate, funding a private note, or jumping into an off-market deal with a short deadline.

And in most cases, how fast you can move comes down to this: Are you using checkbook control, or are you going through your custodian for every step?

Here’s how both setups actually work in 2025, and what kind of delays you can expect with each.

Custodian-controlled IRA: delays built into the process

With a custodian-controlled IRA, every transaction has to go through your IRA provider. That means:

• You fill out a form requesting a wire, or submit documents for review
• The custodian reviews everything before giving the green light
• If they have questions or need revisions, that adds another back-and-forth
• After approval, they release the funds or sign the paperwork

Even when things go smoothly, you’re usually looking at 1–3 business days. Some custodians move faster, but there’s always a queue, especially at month-end or quarter-end when volume spikes.

That delay can cost you a deal, especially if the seller or borrower needs an answer the same day.

Checkbook control: why it’s faster

Checkbook control flips the process around. Instead of waiting for a custodian to sign off, you’re signing contracts and wiring funds directly.

This works by having your IRA own a special-purpose entity, usually an LLC or Trust. That entity opens its own bank account, and you manage that account as the non-compensated manager or trustee.

So when a deal lands on your desk:

• You don’t wait for approval
• You don’t fill out request forms
• You can wire funds or sign contracts right away

The custodian is still involved at the beginning (to fund the entity), and for reporting, but you’re in control of the day-to-day.

A few things to watch out for

Checkbook IRAs come with more responsibility. You’re the one signing things and managing the entity, so you need to:

• Track your income and expenses properly
• Avoid prohibited transactions (like self-dealing or paying yourself)
• Make sure any investment decisions stay within IRS rules

The good news is: once it’s set up, the process is simple. Most investors just need a quick walkthrough at the beginning, and it becomes second nature after that.

If you’re only planning to invest in funds or long-term real estate with no rush, a custodian-controlled IRA might be enough.

But if you want to move quickly on private deals—especially ones that require same-day or next-day funding—checkbook control gives you the flexibility to act without delay.

In the end, both setups are valid. It just depends on how hands-on you want to be, and how fast you need to move.