Facts about Home Storage IRAs

6 Unless your metals are safely stored with a qualified trustee, the exception made for bullion in an IRA account will not apply. 3. The consequences for investing your IRA via a “prohibited transaction” can be severe. Use caution; if the IRS decides you’ve broken the rules, your retirement account could instantly lose its status as a tax- deferred IRA and be subject to heavy taxation. The transfer could be considered a taxable distribution, and subject to ordinary income tax at whatever your tax bracket may be. In addition, if you are younger than 59 ½ years old, you may be liable for a 10% early withdrawal penalty from the IRS. That could be a 35% bite out of your retirement value, easily… but it gets worse. Mat Sorensen, a well-known attorney who focuses exclusively on self-directed retirement plans, refers back to Black’s Law Dictionary (a definitive legal dictionary referred to by lawyers and law students from around the country) to define the phrase “physical possession” found in Section 408(m) of the Internal Revenue Code. According to Mr. Sorenson – the definition of “physical possession” is: “a person who knowingly has direct physical control over a thing.” THE BO T TOM L I NE : Make sure you qualify before you open a Home Storage IRA and put your retirement account at risk. Contact us to see if you truly qualify. If NOT, don’t worry. There is an easy way to place precious metals into an IRA and feel comfortable with the storage of your precious metals. Precious metals backed IRA’s can be a great idea…IF you play by the IRS’s rules. In fact, many investors believe that precious metals are severely under-valued right now and poised for significant gains in 2015. Not only that, but as you probably know, they serve as a hedge against an over-valued stock market, risky government deficit spending, and reckless legislation. That’s why Lear Capital has And There’s Never Been a Better Time.