Having checkbook control of your IRA means that you can actually write checks drawn from the funds in your IRA. It is a simple concept but a radical one to many investors. Checkbook control is not something that many traditional IRA providers offer their customers. It has been the case since the inception of the IRA in 1974 that IRA providers maintained control over most of the actions pertaining to their customers' IRAs.

Though that arrangement is still in evidence in a majority of IRAs to some degree or another, more and more people are demanding greater control over their own assets. This is not to say that if you do not have checkbook control you have no power over your own assets. It simply illustrates the degrees of control that are available to consumers. You can have as much or as little direct involvement in your IRA as you wish, so long as you set it up that way.

If you do not have the fiscal discipline or knowledge of the rules governing IRAs to avoid breaking them, checkbook control can be dangerous. If you mistakenly use IRA funds for disallowed purposes, you can find yourself having to pay hefty penalties and fees which can negate all of the benefits of your IRA's tax-advantaged status. Setting up your IRA with the right company can make all of the difference when it comes to avoiding such mistakes.

IRA Advisors and Checkbook Control

The right IRA advisor can help ensure that you remain compliant with the rules and regulations. However, advisors have their areas of expertise and areas with which they are not intimately familiar. You should consider your personal goals and investment strategies to make sure that the advisor you choose is in step with you. That way, he or she can guide you where you want to go instead of going only where he or she can take you.