Have you been hearing about home storage gold IRA? But really, what is a home storage gold IRA? Are you allowed to store your gold IRA at home or not?
What rules applies for gold IRA storage? If you’re not allowed to store it at home then where?
These questions will be the main focus of this post and after reading it you will know exactly how it works with gold IRA storage.
Do you want to have physical possession of the gold in your IRA? I don’t blame you.
One of the main reasons why people invest in gold is because of the safety from a coming economic collapse.
This current system of debt is not sustainable and it’s just a question of when the system will fail, even worse than it did back in 2008.
When all else fails people historically turn to gold as a store of wealth.
As an example: If the credit card systems and ATMs stopped working for one week how would you put food on the table for you and you family?
If this happened then people who owned gold could easily pay for their consumption with it. In order to do that you will need quick and easy access to your gold and silver.
This is the main reason why people like to store their precious metals at home. Because it’s a safety that you always have money, even if all else fails.
Some companies pray on this fear to make you buy from them
The concern about a financial breakdown is definitely a valid concern. The way that our financial system today is run has never worked throughout history.
The thing is that a lot of company know that gold investors have this fear and want to have their gold close to them and preferably in their home.
That’s why you can see a lot of companies out there today saying that storing your gold IRA at home is totally legit and within the rules. This way they can try and attract you their services which they will charge you for.
To ensure that you do not fall into any scams or doing anything illegal we will look at the exact IRS rules for owning gold in your IRA.
Can you buy gold with your IRA and store that gold at home legally?
What is a home storage gold IRA – can you really store your gold IRA at home?
To answer this question in a short answer:
No you can’t. Not without being taxed a lot and playing in a gray zone.
The IRS allows people to invest in precious metals with their IRA only if the metals are in the physical possession of a “trustee”.
The Internal Revenue Code section 408(a) defines a trustee as a:
- Traditional bank (for example Bank of America), an insured credit union or another financial institution subject to regulation by state or federal bank regulators; or
- “Such other person who demonstrates to the satisfaction of the Secretary [of the U.S. Treasury] that the manner in which such other person will administer the [IRA] will be consistent with the requirements of this section.”
It’s this second point where people say that they can find loopholes and store their gold at home. You have to apply to the IRS and meet a lot of different requirements in order to act as a trustee yourself.
Some of these requirements are: fiduciary ability, fiduciary experience, capacity to account, fitness to handle retirement assets, bonding, audits and net worth.
This is an application that almost never gets approved. And until the IRS have approved your application you can’t act as a trustee.
If you don’t get approved you will be taxed around 35% on your gold.
This is the big catch and why I was saying above that it was a big gray zone. Because if your application doesn’t get approved you will take a huge tax hit on your gold.
Because if you store your gold at home it will be counted as a distribution and therefore the investment (your gold and silver) will not be tax-free anymore.
This means that you will pay an income tax on the gold which will be around 25%.
That’s a pretty big hit right? Imagine having to pay up 25% of the amount that you rolled over into gold in taxes. That would not be a good feeling.
It’s not just that you will have to pay income tax on your gold. If you are below 59 ½ years old you will receive a 10% penalty tax as well because you took out your retirement savings to early.
This is the same for every retirement account. Because they are made for people saving for retirement the IRS and the government do not want you to take out any of that money before you retire. Therefore there is a 10% penalty if you do.
This has the total tax and penalties on your gold at 35% if you do not get approved by the IRS. If you are ready to take that gamble then go ahead but most people investing in gold and silver wants safety. Not risks.
If the U.S government wanted to allow people to physically hold the gold in their IRAs don’t you think they would have made it easy then?
Today it’s a massive procedure with applications and requirements making it very hard to do and only a few people meet the requirements.
The reason why they don’t want the people to hold the gold at home is because the IRS wants to know when someone has distributed some of their retirement funds, distributed meaning that you take out money from your retirement account.
The IRS wants that to be reported so that they can tax the distribution like we talked about above.
What about the companies saying that they can help me find the loopholes to open a home storage gold IRA?
As you probably have seen there are a few companies out there today saying that they will guide you through this process and help you find all the loopholes so you can store your gold IRA at home.
Can this really work?
First of all lets think about what we just discussed about the IRS making it hard to do. You are trying to trick the IRS and win.
The IRS have taken some people to court and both won and lost. But the fact is that they really don’t want you to hold your gold IRA at home and they will crack down on anybody trying.
Is it worth risking your retirement savings for this? Expensive legal advice?
Also, all of these companies will have a small disclaimer saying something like: “We do not give legal or tax advice. The company encourage everyone to consult his or hers tax attorney before opening a home storage gold IRA”.
They take no responsibility at all and if your application fails you will have to pay the 35% tax and the company trying to help you will take no responsibility.
Is it really worth it to gamble this much with your retirement savings when the legal way to store your gold in a vault is good enough.
What’s the legal and easy way to store my gold IRA?
Like we were talking about before you need to store your gold with a trustee. There are some trustee’s that specialize in helping people to convert their IRA to physical gold that will help you with that.
Basically you will store your gold in a vault where you can go and inspect your precious metals in person.
The vault is usually a highly secured ones by companies that only handle security of assets like Brinks.
Storing your gold in a vault is actually not that big of a deal. The gold is not owned by the vault so even if they would go bankrupt or anything you still own the gold and they can’t take it.
You also have insurance for anything that could happen to your gold in the vault.
There are two different ways to store your gold in the vaults – make sure you get it right.
The vault where your gold will be stored can either be segregated storage or non-segregated storage and you can almost hear what it is just by the name.
Non-segregated storage means that you and a lot of other people will own gold bars “together”. For example there might be a 1 kilo gold bar where 50 people own different amounts in.
Basically the non-segregated means that your gold is not separated between the other customers. There is a pile of gold and then a document saying how much of that pile YOU own.
Then there is segregated storage which is the opposite. Here you have your own safety deposit box where YOUR, and only your, gold is stored.
Segregated storage is obviously the way to go. This is the closest to store your gold at home but in a vault. There is nothing really that can happen to your gold.
With non-segregated storage there is still some things that can go wrong. Maybe they sell more paper contracts to this pile of gold than there is physical gold?
Regal Assets – an IRA company with segregated storage and 0 customer complaints since 2003.
Regal Assets are the market leaders when it comes to help people rollover their IRA to physical gold and has been so since 2003.
They have 0 customer complaints and a bunch of positive reviews. For example a 5 start rating with Tustlink on over 930 reviews. There isn’t another gold IRA company that’s even close to that.
Regal Assets were also featured in Forbes Investment guide and were ranked number 20 in Inc. 500 for financial services. A lot of big newspapers have been talking about how good Regal Assets are.
They offer segregated storage with Brinks and you can even choose to store your gold in a vault outside of the US. They are the only ones providing that.
They are also the only ones that have a flat fee for storage. All the other companies you will pay a fee depending on how much you store. This fee is usually much higher than the flat fee that Regal Assets provides.
I have been reviewing gold IRA companies for a while now and there is no company that I have found that’s as good as Regal Assets.
Now that we have answered the question: what is a home storage gold IRA I really suggest that you have a look at the Regal Assets review.
Here you will learn much more about the company and ways to get in personal contact with their helpful support staff where you can ask all of your individual questions that you might have.
Please leave a comment below if you have any questions about how to store the gold in your IRA.