Facts about Home Storage IRAs

4 status for retirement accounts and you would be on the hook for the taxes, interest, and penalties. 2. There is ZERO wiggle room for the legal definitions used in the tax code… It’s critical to understand the legal definition of the words ‘physical possession’ and ‘trustee’ used in the IRS Code so there can be no misunderstanding. A trustee is defined in U.S. Code 408(a) and 408(n) as: It’s the third provision to which “home” IRA providers latch on; they make it seem as if you could easily satisfy the Treasury’s requirements to successfully administer a retirement account in your very own home. But keep in mind that if your Home Storage IRA triggers an IRS review, it’ll be YOUR assets on the line. Plus: Home Storage IRAs are not smiled upon by the IRS, to say the least. If you don’t meet the aforementioned qualifications, the IRS will punish you without warning. And if you’re counting on the US Treasury and Commissioner of Banking to overlook your IRA indiscretions, you could be at considerable risk. Make sure you qualify! In approaching the issue of the legitimacy of Home Storage IRAs, Seth E. Pierce, Esq. of Mitchell Silberberg & Knupp LLP had this to say: “If the U.S. Government wanted to let people keep direct physical control over their retirement savings, it could have easily done so. It did not – it imposed the trustee requirement. This was not 1. “Any bank 2. An insured credit union 3. A corporation which, under the laws of the State of its incorporation, is subject to supervision and examination by the Commissioner of Banking or other officer of such State in charge of the administration of the banking laws of the state 4. Such other person who demonstrates to the satisfaction of the Secretary that the manner in which such other person will administer the trust will be consistent with the requirements of this section…”