There are companies offering home storage gold IRAs, but it’s important to remember that this form of investment is disapproved of by the IRS. By acting as its own custodian and purchasing and storing your bullion themselves, these firms increase the chance of an audit by the government.
Your IRA-purchased precious metals must be stored with an IRS-approved depository, such as a bank or compliant nonbank trustee, in order to avoid distribution penalties. Failure to do so could incur severe hefty distribution fees.
It’s Not Legal
An IRA requires legitimate custodians in order to meet IRS rules, making research of dealers essential. Be wary of those offering gold IRAs who claim affiliation with industry trade groups such as American Numismatic Association, International Coin Traders Association or Professional Numismatists Guild as they might not provide the highest levels of service or compliance.
Self-directed IRAs allow investors to invest in precious metals with very specific regulations in place. Congress and the IRS allow you to store them at banks or approved non-bank trustees; keeping them at home could trigger taxes and penalties depending on your account type and age.
Rhode Island couple who purchased gold and silver coins for their IRA were successful, yet a Tax Court judge found against them. He found they violated IRS regulations by keeping their precious metals at home, leading them to face potential massive fines from this oversight.
It’s Not Safe
Although it might be tempting to keep your IRA’s gold at home, this is not recommended as this goes against the laws Congress put in place to safeguard you and your retirement assets. To safely store precious metals within an IRA account, work with a custodian who can move coins and bars to an approved depository facility.
If you tried to conceal the gold held within your IRA at home or in a bank safety deposit box from view of the IRS, they could penalize and disqualify it as tax-advantaged – forcing you to pay taxes, fees and penalties on nearly half of it as part of a penalty fee assessment.
Avoid this risk by working with a Birch Gold Group-approved precious metals company that uses a secure depository. Such depository is insured against a variety of risks and is IRS compliant; for this security and compliance it charges annual storage fees.
It’s Not Tax-Free
The IRS has made it very clear that precious metal IRA assets cannot be kept at home. This disapproves of an approach promoted in many radio and internet advertisements as legal ambiguity existed at that time.
These precious metals must be stored in depository storage approved by the IRS to ensure proper management and accounting, and to prevent distributions that would occur if stashed away in a safe or closet, which are considered early withdrawals subject to penalties under law.
If you are interested in discovering how a Gold and Precious Metals IRA could enhance your retirement savings, contact Rosland Capital’s precious metals representative now. Not only are our representatives experts in their respective field; they’re also committed to providing unparalleled customer service.
It’s Not Easy
When encountering someone claiming they can store your precious metals at home, it’s wise to run in the opposite direction. Such individuals could be trying to sell you an illegal gold IRA scheme; to avoid these schemes altogether you should work with companies such as Goldco and Augusta Precious Metals which offer trusted, IRS-approved custodian services and secure storage options.
Most investors who begin investing in precious metals for retirement typically open either a traditional or Roth Gold IRA. These accounts allow earnings to build tax-free until you retire and withdraw them as assets.
Self-employed individuals and small business owners may open a SEP Gold IRA with contribution limits and pre-tax dollars, unlike traditional IRAs which use after-tax dollars for contributions. Distributions will still incur taxes but you can avoid early withdrawal penalties by waiting until age 59 1/2 to withdraw distributions from this account.