Individual retirement accounts (IRA) provide investors with an effective and safe means of investing in precious metals; each type has different rules and restrictions when it comes to holding investments, including gold.
At home storage is not advised for IRA gold as this breaches IRS rules and exposes investors to risks such as theft or damage. For more on this topic please read: Can You Store Your IRA Gold At Home?
Legality
The IRS clearly stipulates that precious metals must be stored in an independent depository, rather than at home. Due to theft and natural disaster risks, home storage of gold may not be suitable or legal and could void your IRA investment assets altogether.
If the IRS discovers your gold investments are held within your home, they could disqualify them from tax-advantaged status and incur immediate distribution penalties and additional fees.
Investors storing gold in an IRA should look to an established precious metals dealer, custodian and depository in order to avoid the risks associated with self-storing at home. Such companies must abide by stringent regulations in order to properly secure your metal investments – storage fees typically average about one percent of the value of your IRA’s gold; an initial setup fee will also apply as well as annual charges including transaction and asset management costs.
Security
Though many feel safer keeping their gold within easy access at home, precious metals are susceptible to theft and loss. Furthermore, the IRS has specific criteria regarding storage of IRA assets; failure to abide by them could incur serious penalties.
Legally storing precious metals requires working with an authorized dealer, custodian and secure depository that meets stringent regulations pertaining to storage IRAs. Such companies specialize in safe keeping of IRA-related precious metals.
One such company is iTrustCapital, known for their transparency in pricing, customer service, and secure storage facilities. Furthermore, they provide more diversified investments than most gold IRA providers (such as crypto investments). This makes iTrustCapital an excellent way for investors to diversify their retirement portfolios while simultaneously minimising risks tied to their home economies.
Insurance
Many people like the idea of keeping their Gold IRA at home as an extra layer of security against financial catastrophe, however it should be remembered that doing so is illegal and could incur serious tax liabilities with the IRS.
To comply with IRA rules, physical precious metals must be stored in an IRS-approved depository with security and insurance policies to protect your assets in case of disaster. Unfortunately, this means additional storage fees which could become very costly should you decide to withdraw distributions from your Gold IRA.
Storage at home also violates prohibited transaction laws and constitutes self-dealing; should the IRS discover this activity, they could immediately disqualify your account and assess income taxes and fees on all withdrawals made from it. It’s therefore crucial that you work with an established precious metals company like Red Rock Secured that partners with IRS-approved depository storage providers like those used by Red Rock Secured.
Taxes
The IRS makes it very clear that you cannot store physical gold or precious metals at home, even if they belong to your IRA. Instead, these assets must be held at an approved depository or safety deposit box owned by an LLC controlled by an impartial third party. Some gold IRA advocates assert otherwise; using clever techniques they claim you can store your own IRA-owned precious metals at home while fooling the IRS into thinking an LLC controls storage.
But the IRS doesn’t fall for such tricks: Storing your IRA gold at home is illegal and could incur hefty penalties; taking possession before age 59.5 would qualify as early withdrawal and incur heavy early withdrawal penalties; furthermore, the IRS closely monitors IRA-approved depositories to assess their size, management capabilities, legal retention practices and recordkeeping practices – so keep that in mind before making this move!
