Rocket Dollar

Rocket Dollar is a fintech platform that simplifies the process of creating a Self-Directed IRA or Solo 401(k). This structure allows individuals to use their retirement funds to invest in alternative assets that traditional brokerages prohibit, such as real estate, startups, cryptocurrency, and private equity. The user creates an account, and Rocket Dollar establishes an LLC inside the IRA, giving the user "checkbook control" over their funds.

This model is ideal for savvy investors who want to maximize tax-advantaged growth by investing in assets they understand. Because you have checkbook control, you can execute investments instantly by writing a check or wiring funds from the IRA LLC bank account. It is a legitimate and compliant way to diversify a nest egg beyond stocks and bonds.

Frequently Asked Questions

1. specific setup fees?

Yes, Rocket Dollar charges a one-time setup fee (typically $360) and a monthly compliance fee (around $15/month) for their Core account. Gold accounts with expedited service and additional features have higher fees. These fees cover the creation and maintenance of the LLC structure.

2. Can I invest in crypto?

Yes, with a Rocket Dollar account, you can open a corporate account at a crypto exchange using your IRA LLC credentials. This allows you to trade digital assets using your retirement funds without incurring immediate capital gains taxes. You hold the keys to your assets.

3. Is checkbook control legal?

Yes, the structure used by Rocket Dollar is fully compliant with IRS regulations for Self-Directed IRAs. However, strict rules apply regarding "prohibited transactions," such as lending money to yourself or buying a vacation home you personally use. Rocket Dollar provides guidance on these rules.

4. How long does setup take?

The process of establishing the IRA, forming the LLC, and opening the bank account typically takes 2 to 3 weeks. This timeline can vary depending on the speed of the state filing office and the custodian transfer of your existing retirement funds.

5. Can I transfer my old 401(k)?

Yes, you can roll over funds from a previous employer's 401(k) or an existing IRA into a Rocket Dollar account tax-free. This rollover funds your new self-directed account, giving you the capital to start making alternative investments immediately.