Can You Store Gold IRA at Home?
Have you seen ads promoting gold IRAs on TV, radio or the Internet? Such advertisements typically imply that your precious metal can be stored safely at home – this is false advertising and should be ignored.
Physical gold investments in an IRA at home are technically illegal under IRS regulations and could incur significant fines and taxes.
Fire or flood, for instance, could wreak havoc with your precious metals and render them worthless. Furthermore, home insurance policies rarely cover gold assets; thus storing your IRA gold at home exposes it to theft and other risks.
The IRS imposes stringent regulations regarding how and where gold IRA investments may be stored, and any infraction could lead to significant tax penalties.
Birch Gold Group can help you manage the risks associated with investing in precious metals IRAs to enjoy the freedom and independence of self-directed IRAs without additional liabilities or regulatory risk. You’ll enjoy lower custodial fees – typically lower than with standard IRAs – as well as seller markup fees (markup) and transaction fees that vary significantly, yet are still significantly less than what standard IRAs charge.
Home storage of Gold IRAs may expose your precious metals to theft and natural calamities such as fire or flood; additionally, home insurance policies often only cover them up to a limited value, making this form of storage highly risky.
Keep in mind that the IRS strictly regulates IRA asset storage at home, so companies offering to store Gold IRA investments there could be breaking the law. According to their regulations, IRA investments must be held in an approved depository; keeping them at home would constitute distribution which could trigger tax penalties if you’re under 59.5 years old.
Partner with a reputable Gold IRA provider who provides secure storage at an IRS-approved depository, like Augusta Precious Metals or Goldco. Reputable providers like Augusta Precious Metals and Goldco offer transparent pricing structures with buyback guarantees, without charging extraneous fees ancillary to storage. Plus they also offer customer education resources.
Gold IRA advocates may advocate “home storage,” however this practice is neither permissible or safe according to federal regulations. Instead, an IRS mandate mandates that precious metals purchased through an IRA be stored securely at a depository facility.
Home storage presents numerous risks, from theft and natural calamities to minimal home insurance policies that don’t cover precious metals – both are very real concerns when it comes to protecting precious items in home-storage units.
Depository facilities typically provide advanced security measures and full insurance coverage, in addition to segregated storage which ensures your gold will be safely kept apart from those belonging to other investors.
As more Americans distrust traditional investments, more are turning to gold IRAs as an alternative investment solution. According to research, gold provides essential diversification and risk reduction benefits while offering tax advantages that traditional investments cannot match. Investors should however be wary of companies advertising home storage gold IRAs; such advertisements can often be misleading advertising; an established precious metals IRA custodian would never suggest home storing of an IRA’s assets.
Home storage advocates offer several strategies to get around IRS restrictions when buying and storing precious metals without breaking any laws. Their suggestions include creating an LLC as the trustee of your IRA account and renting a safe deposit box to store precious metals safely.
But being an IRA custodian requires extensive work. This involves managing an account, complying with laws, keeping records and filing reports; any mistake could lead to serious penalties and the potential loss of retirement benefits.
An independently operated storage facility managed by a reputable metals dealer offers more security features than traditional safety deposit boxes or closets, with clearly stated policies regarding access times and speeds of retrieval, competitive prices and excellent customer service.