While you can technically set up an LLC and control your IRA purchases yourself (as long as you meet some strict requirements), you still can't store the gold in your home. It has to be in a safe deposit place in the name of the LLC, such as a safe deposit box, for example. The recent IRS statement against home storage is an important fact that all self-directed IRA investors who own precious metals should be aware of. Keep in mind that there are two rules that apply to precious metals that are owned by an IRA.
First, precious metals owned by an IRA must qualify under IRC § 408 (m) (. In short, these rules approve certain specifically approved coins (e.g. American Eagles) and gold, silver, platinum, or palladium that meet certain fineness requirements. See my previous article for more details, as not all precious metals qualify to be owned by an IRA.
In addition, chapter 12 of my book, The Self Directed IRA Handbook, covers the topic in detail. For a detailed legal analysis, please refer to our white paper on the subject found at the following link. The IRS Has Never Allowed Gold IRA Storage at Home, and Probably Never Will. A Gold IRA for home storage requires you to meet the following list of requirements, and if it is determined that you are not eligible, the purchase will be treated as a taxable deduction from your retirement account.
The Home Storage IRA Gold is an attractive concept, but the requirements are substantial and the penalties for non-compliance can be more than substantial. This sounds like a skeptical practice until you realize that the IRA regulates this whole process, and depositaries are so confident that they actually insure you against losses, usually in excess of what most gold investors are actually stockpiling. Proponents of the Gold IRA for Home Storage Try to Convince You They Have Smart Solutions to Get the IRS's Attention. Money Reserve can help make the whole process easier, from opening your IRA with an approved custodian to arranging for the safe and discreet delivery of your gold to an IRS-approved depositary.
The IRS makes it clear that you don't want anyone to store gold from a self-directed IRA in your home or in your own safe deposit box. And then tell a story of how you could lose everything in your IRA if you don't store your IRA assets in your home. You can't just buy gold from anywhere and ship it, so many ads for “selling and shipping gold directly to your home” often have a bad reputation as a scam. Keep your physical gold until you're ready for retirement or pass it on to future generations, just don't claim that any of it is part of an IRA.
You are not allowed to act as the trustee of your gold IRA for home storage until, what if, the IRS approves your application. In this agreement, a metals trader acts as a custodian and sells currencies allowed by the IRA, such as American Gold Eagles and Canadian Maple Leafs, as well as other pure forms of bullion. The IRS stipulates that any person acting as a custodian or trustee of an IRA must be a reputable financial organization, such as a bank, or any person who has proven to be reliable to comply with IRA administration requirements. American Bullion is a well-respected pioneer in the IRA Gold and is well-equipped to help you take advantage of this valuable but underutilized retirement tool.
IRA investments in other unconventional assets, such as closed-end firms and real estate, risk disqualifying the IRA due to prohibited transaction rules against self-trading. If you try to store gold in a home that is supposed to be in a self-directed IRA, the IRS will likely see it as a taxable IRA distribution and, if you are under the age of 59 and a half, an additional 10 percent penalty for early withdrawal. But the fact that even pro-gold investment companies think that a gold IRA for home storage is illegal should give it a pause.
Leave a Comment