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EINs for Self-Directed IRAs

What is an EIN and, more importantly, as an investor, do I need one for MY Self-Directed IRA?

EINs, or Employer Identification Numbers, are issued by the IRS for the purposes of tax administration.

If your self-directed IRA has invested in an LLC, then, YES, you do need one.

As an investor in an LLC, your SDIRA will receive a K-1 in which case you’ll need an EIN and Tax Identification Number (TIN).

Are there other scenarios in which an SDIRA requires an EIN?

If you invest in real estate for your SDIRA, for example, then an identification number is also needed.

Wait, but I thought my IRA was exempt from taxes. Why do I have to file?

You may not owe taxes, but you are still required to file.

How can I get an EIN?

If you need to obtain a FIN/TIN/EIN, you may use your own CPA or another professional. You can also use CamaPlan’s streamlined process with Kerr & Company P.C. for a fee of $99. See our Obtaining a TIN/FIN/EIN page.

For more information, please be sure to watch this informative video with Elizabeth A. Cummings, CPA.