In particular, the Internal Revenue Code states that gold, silver, platinum, and palladium purchased for an IRA must be stored at a recognized financial institution or at an IRS-approved depositary. You can’t store gold for your IRA at home or in a safe deposit box. To comply with IRS-IRA guidelines, your physical gold assets must be stored in an IRS-compliant depot. They were in a legal gray area until a recent court case ruled that IRA owners who invested in gold and silver coins could not store them at home themselves
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Money Reserve can make the entire process easier for you, from opening your IRA with a verified custodian to arranging a secure and discreet delivery of your gold to an IRS-approved depositary. If the IRS decides that the day you opened your home storage IRA was the date of the first “distribution,” you could be on the hook for additional interest and penalties for back taxes owed from the time it was distributed. Withdrawal penalties If you have your IRA gold transferred to be stored at home, the IRS considers this a distribution. There are several other qualifications that you must meet, and often the IRS pays particular attention to Home Storage IRAs for potential violations
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Investors who break the rules and keep the gold bought by the IRA domestically could face distribution penalties for now. Although investors can undoubtedly buy physical gold and store it in a home safe, the IRS strictly prohibits this when it comes to gold (and other precious metals) purchased by the IRA. Separate storage means that your gold is kept separate from everyone else’s, which provides added security. Storing your gold at home counts as a distribution, which means a 10% penalty if you’re under 59 years of age. In addition, keeping IRA assets in your home could be considered “proprietary trading,” according to the Industrial Council for Tangible Assets, and could be treated as a prohibited transaction by the IRS
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A self-directed IRA managed by a qualified custodian bank, on the other hand, gives you various types of gold, silver, platinum and palladium. Remember that if you want to keep physical gold at home, you can still do so as long as the gold isn’t part of an IRA. The concept of home storage may seem simple, but there’s a mountain of red tape standing in the way — not to mention a whole host of tax risks posed by the IRS. In addition, many people are tempted by the option to store their precious metals at home with an IRA LLC, commonly known as a Home Storage IRA or Checkbook IRA.
