Just got of the phone with a financial advisor that has been sending us quite a few clients.  One of the reasons they have been sending their people to us is our expertise and the time we spend educating our clients.

He was in a panic because one of his clients had been previously set up by a competitor and had made a mistake in transferring money into their LLC.   She had wanted to roll over an old IRA and had the funds sent from the old custodian DIRECTLY to the IRA LLC instead of routing it through the new custodian of the IRA-LLC.  Big mistake.

Since it had been longer than 60 days, this will be a tough one to fix.

It is important to realize that ALL contributions must go to the custodian THEN into the LLC.  The same goes for moving another IRA or plan.  First it must go to the new IRA and THEN down into the LLC as an investment of the IRA.  It can NOT go from the old custodian to the LLC since they are NOT the custodian of the IRA that owns the LLC.  The funds must go to the IRA that OWNS the LLC.  Then they can be invested into the IRA-LLC as an “add on” investment.

Remember, we’ve got your back (read this post).  We are here. If you have a question give us a call.  Hope you made it through April 15th without getting skinned alive.