Facts about Home Storage IRAs

5 accidental; the government wants an independent trustee holding the assets to make sure the funds or coins are actually held and that any distributions are reported to the government. If you are holding your own assets, even under the guise of an LLC (that you own and control by the way), it is fair to say you are going to have a difficult time ‘satisfying’ the Secretary of Treasury of anything. ” Further: “Any entity wishing to comply, such as the LLC set up to hold your ‘home’ precious metals, must complete a written application with the IRS demonstrating that the applicant satisfies a long list of requirements specified in the applicable regulations, including requirements relating to fiduciary ability, fiduciary experience, capacity to account, fitness to handle retirement assets, bonding, audits and net worth.” 3 Points to Consider with a Home Storage IRA: 1. The IRS takes retirement accounts seriously. Many investors were taxed at a 50% rate for a similar scheme in the early 2000’s 1 . 2. Companies that sell IRA LLCs will not stand by you legally. Most will completely disavow their role in the arrangement, claiming that they serve only as a non-interested third party. 3. There is not one precious metals dealer that has been in business more than 10 years that offers this product. The reason established precious metals dealers shy away from Home Storage IRAs? They simply aren’t as profitable for most investors. Creating an LLC, undergoing audits and overview, keeping an open business location, and keeping legal counsel on retainer is incredible expensive. Not to mention the time spent should you undergo an IRA review – you could lose half your IRA if you opened a Home Storage IRA without qualifying for one. The precious metals-backed IRAs offered by reputable precious metals dealers allow for all the tax benefits of a Home Storage IRA with the added bonus of vault security for your IRA, insurance on your gold and silver, and a sustained relationship with your precious metals dealer, all without the costs or IRS qualifications involved in a Home Storage IRA.