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. Home Storage IRAs Aren't a Safe Way to Invest for Retirement. They have occupied a legal gray area until a recent court case ruled that IRA owners who invested in gold and silver coins cannot store them themselves at home.
You cannot store IRA-eligible gold at home or in a local safe deposit box. 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. Golden Anger Advocates for Home Storage Try to Convince You They Have Smart Solutions to Get IRS Attention. You are not allowed to act as the trustee of your gold IRA for home storage until, what if, the IRS approves your application. Unlike withdrawing funds from a traditional retirement account, a gold-backed IRA allows you to leave with a powerful physical asset in hand with gold that you can hold, sell at a later time, use as currency at a time of crisis, or pass on to family members.
However, American Eagle Bullion gold coins are the only gold coins that are an exception to purity guidelines. If you keep precious metals at home that are included in a self-directed IRA, the IRS is likely to treat them as a taxable IRA distribution. Even a home storage IRA is just an indirect way to invest in your LLC rather than the gold itself. As long as there is gold on this earth, it's not too late to open your own self-directed precious metal IRA.
However, there is a loophole (see Internal Revenue Code, Section 408 (m) () in the collectibles ban: You are allowed to collect certain forms of gold, silver, platinum and palladium in a self-directed precious metal IRA (commonly called a gold IRA). I recently received a brochure from Capital Gold Group titled “My Home Storage IRA: Get the Facts. If any of the IRA-eligible gold coins listed above have been qualified by a certification organization (such as the Professional Coin Sorting Service), the IRS will normally define them as “collectibles” and are therefore not allowed in IRAs. Once you are 59 and a half years old, you can liquidate the precious metals in your self-directed IRA for cash or take physical possession of your gold and silver without penalty.
Unlike self-directed IRAs managed through a qualified custodian, home storage IRAs assume that the account owner is totally self-sufficient in managing their But the fact that even pro-gold investment companies think that a gold IRA for storage in the home is illegal should give it pause Although the rules surrounding retirement accounts and gold IRAs may seem confusing, the experienced account executives of the Gold IRA of U. Home Storage is an attractive concept, but the requirements are substantial and the penalties for non-compliance can be more than substantial. .