Gold is a solid investment that can create a strong financial foundation for your golden years. As national debts soar and currencies become less valuable, many individuals are adding gold to their IRA plans. While this is a sound investment strategy, there are many myths and rumors about incorporating gold and other precious bullion within your retirement strategy.
The internet is awash with opportunities for setting up these IRA plans. They are commonly marketed as “Self Storage” Gold IRAs, or “Home Delivery” Gold IRAs. The marketers of these plans often claim that current laws allow individuals to store at home bullion purchased as part of an IRA. It’s an enticing promise that far too many investors fall for.
In reality, the IRS code prohibits you from purchasing gold and silver bullion and holding it in trust at home. Of course, the IRS allows individuals to set up and manage their IRAs, however, your funds and assets must be held by a trustee, either a bank or qualified individual, who will hold the asset in a manner that is consistent with the requirements under Section 408(a)(2) of the IRS code.
The IRS doesn’t allow you to become the custodian or trustee of your private IRA accounts. In fact, individuals who store their precious metals IRAs at home may be subject to a penalty of 10 percent if they are under 59 1/2 years old. They may also be held liable for federal income tax on the assets. Thus, individuals who purchase “Self Storage” Gold IRAs, or “Home Delivery” IRAs can face a considerable shock if these assets come to light during an audit. That’s not even discussing the potential risk of theft or loss you can experience as […]