Can You Store Your IRA's Gold at Home?

Can you store your gold in your IRA at home?

Gold IRA is a self-directed IRA through which you can store many different precious metals such as gold, silver, platinum, and palladium. It can be in gold bars, gold bullion, physical gold coins, or silver coins. You might see different ads stating how you can store your IRA-purchased gold right at your house. However, that is not very accurate. And doing so can get you in trouble, and you might be subject to high IRS penalties or an audit in the worst case.

These ads might seem tempting and an opportunity for you to store your physical gold at home, but you need to ensure that you do not get scammed by these dealers. The accounts that claim to let you store your gold from your IRA at home violate the rules of the IRS and fall in a grey legal area.

IRS has made it clear that the precious metals you buy on your own are your property and store them according to your convenience. However, precious metals that you buy through IRA are to be kept with any bank or confidant that the IRS approves.

In this article, we have discussed whether you can store your gold IRA at home and what consequences you might face.

Gold IRA: How it Works?

Gold IRA is a self-directed individual retirement account. This account slightly differs from what a normal IRA would be like.

This self-directed IRA is a smart choice for retirement savings as it diversifies your retirement portfolio. You can invest in mutual funds, stocks, market exchange-traded funds, and bonds with a regular IRA. However, with precious metal IRA, you can invest in other retirement assets such as precious metals, real estate, etc.

A precious metal IRA is great for expanding your retirement nest egg.

A custodian manages the physical assets in your account. Hence there is a storage fee that needs to be paid.

IRS's view about storing gold IRA at home

Physical gold can be bought and stored in a safety deposit box at home. You cannot do the same for the gold purchase through an IRA. The same is for other precious metals in an IRA. IRS code Section 408(m) states that the metals in your IRA should be stored and managed by a bank or an IRS-Approved Nonbank trustee.

Gold and billions classify as collectibles, and these collectibles in IRA are not preferred to be held by an IRA. However, the well-refined bullion is an exception only if a bank or other IRS-approved firm contains it.

Rather, the gold IRA is preferred to be managed by some custodian or IRS-Approved Depository.

If you keep the gold from the IRA at home as physical possession, that would be equal to withdrawing it out of your account, and if you do it before the particular age of 59 and a half, you will have to pay tax penalties. Gold storage at home isn't a preferred choice.

Legal Guidelines For Storing Gold IRA at Home

Legal rules for storing your gold IRA at home

Storing a gold IRA at home is legal only if you abide by certain gold IRA rules. Some of these guidelines are as follows:

  • You need to have established a Limited Liability Corporation and fill out the agreement.
  • You should have the arrangement to store your gold IRA at a business location.
  • Your assets should amount to $250,000, and you need to provide proof of your financial background that you will be able to manage your IRA.
  • You should also have a lawyer.

Penalties For Storing Gold IRA at Home

If you are found to store gold at home illegally in some safe deposit box, you can get in serious trouble. You will have to pay a hefty penalty as well. Keeping the physical metals at home will mean that you have withdrawn the asset from your IRA, and you will have to pay a 10% penalty tax if you are not at the eligible age of withdrawal.

In worst cases, your IRA might face an audit if IRS is informed about your activity of storing gold from a precious metal IRA at home. After the audit, you might be subject to even more fees.

Wrapping Up

Gold IRAs are a great way of saving retirement funds for your retirement plan. However, it would be best if you were responsible and not choose ways to land you in hot water and make your retirement life unpleasant. You should be aware of the scams and not try to store a gold IRA at home.

Despite how tempting some ads may look, you need to differentiate between whether that activity is approved and make an informed decision; otherwise, you will be subject to heavy fines and even an audit.

The IRS does not recommend gold storage of IRA at home, and hence, you should not do so to save yourself from extra trouble. And if you plan to do so, make sure you have followed all the guidelines.

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