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How to Store Precious Metals Owned by IRA LLC

by | Oct 7, 2020 | Alternative Investments, IRS Rules and Regulations

Precious metals owned by an IRA LLC should be stored with an IRS-approved depository

Precious metals owned by your IRA cannot be stored at your home or in a local security deposit box in your name.  According to IRS rules and regulations, precious metals can be held in an IRA “provided it is in the physical possession of a bank or an IRS-approved nonbank trustee.” 

The IRS may determine that storing precious metals owned by your IRA at home a distribution and you can get hit with taxes and penalties.  And these taxes and penalties can be applied retroactively to the date you started storing them in your home.

The IRS, says the Wall Street Journal, “warns taxpayers to be wary of anyone claiming that precious metals held in your IRA can be stored at home or in a safe-deposit box.”

If your gold is held by an IRA LLC rather than by the IRA directly, the rules are a bit unclear but most reputable industry professionals will recommend that you follow the same guidelines and use a federally approved depository.

You can take a distribution from your IRA in the form of physical gold

When you begin to take distributions from your IRA at age 59 1/2, you can liquidate the precious metals in your self-directed IRA for cash or take physical possession of your gold and silver without penalty.  This is true even if you own the precious metals through a Checkbook IRA LLC. 

Benefits of Purchasing Precious Metals in a Checkbook IRA LLC

Using an Easy IRA LLC allows you to invest in precious metals as easy as writing a check to the dealer of your choice.