Planning to liquidate some of your precious metals holdings? Wait! Here’s what to consider FIRST....
For years, false advertising may have misled investors into thinking they could store precious metals in their own homes or safety deposit boxes as part of an IRA account. The reality is quite different, as confirmed by the recent ruling, Andrew McNulty et al. v. Commissioner of Internal Revenue. In this case, the judge ruled that the physical storage of gold and silver coins in a safe at home constituted “unfettered control” of the investment and would thus be considered a taxable payout from the IRA.
In response, the IRS has further clarified its views on “home storage” and the use of an LLC set up as self-managed by the IRA owner to purchase and hold investments in gold and silver coins, warning that IRA owners cannot do indirectly what they cannot do directly.
However, the Internal Revenue Code does allow IRAs to include certain gold, silver, platinum and palladium bullion (coins and bars) so long as they meet the LBMA (London Bullion Market Association) minimum standards of fineness and are held through an IRA trustee administrator in an approved depository.
Let’s face it… navigating retirement planning can be quite difficult, and when it comes to self-directed IRAs, even more confusing as to what guidelines must be followed.
It’s more important now than ever that you have a plan for your retirement and protect your wealth until then so that you don't outlive your money. And if you make a mistake with your IRA, the financial cost can be significant.
So, What Can You Hold in an IRA?
To qualify to be included in an IRA, precious metals products must meet the following minimum fineness requirements:
• Gold must be 99.5% pure, silver must be 99.9% pure, and platinum and palladium must both be 99.95% pure.
• Bars, rounds and coins must be produced by a refiner, assayer or manufacturer that is accredited/certified by NYMEX, COMEX, NYSE, LME, LBMA, LPPM, TOCOM, ISO 9000, or national government mint
• Proof coins must be in complete, original mint packaging, in excellent condition, and include the certificate of authenticity.
• Certain bullion bars must be manufactured to exact weight specifications.
• Non-proof (bullion) coins must be in brilliant uncirculated condition and free from damage.
Gold products that are eligible include gold American Eagle and Buffalo coins, gold Australian Kangaroo coins, gold Austrian Philharmonic bullion coins, and gold Perth Mint bars, among others. Silver Products could include the silver American Eagle coins, America the Beautiful coins, and silver Mexican Libertad coins. You can even include Perth Mint Certificates for gold, silver, and platinum with select trustee/administrators. This list of products is by no means comprehensive, but we can let you know which products fit the minimum fineness requirements.
Who Can I Trust to Have the Right Information on IRAs?
We have been helping clients to include precious metals as part of a diverse retirement portfolio since the IRS code first allowed it in 1986. Specifically, your precious metals cannot be held by you directly; they must be held through an IRA trustee administrator in an approved depository.
But there are other pitfalls that investors planning their retirement might fall into without the correct information. We can help you answer questions like:
• Can I store the metal myself at home or in a bank account?
• Can I hold rare coins or collectibles in my IRA?
• Which coins and bars meet minimum fineness specifications for an IRA?
• Why do I need to take an Required Minimum Distribution (RMD)?
• What are contribution limits?
And we can help to connect you with an IRA administrator you can trust to safely and securely hold your metals. Over the last 30 years, we’ve developed numerous relationships with some of the industry’s most reliable IRA trustee administrators and depositories that we trust to stand behind everything they do. These relationships allow us to give you the freedom to choose from a host of viable options for your precious metals IRA.
Why Should I Add Precious Metals to an IRA?
Precious metals are perfect for an IRA because they are best for long term investing goals. Since 2000, gold has actually outperformed standard "paper" investment assets like stocks!
Precious metals are an excellent option for investors looking to balance out their retirement portfolio with a safe haven asset that historically performs well in times of inflation, dollar volatility, and geopolitical uncertainty. Right now, owning gold and precious metals is one of the best hedges against unprecedented inflation. Call 1-800-831-0007 or email us to discuss your precious metals IRA options.
