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Gold IRA Rules and Regulations

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[vc_row bg_type=”image” parallax_style=”vcpb-vz-jquery” bg_image_new=”id^2984|url^http://thegoldriders.com/wp-content/uploads/2016/07/knight570_image3Recovered.jpg|caption^null|alt^null|title^knight570_image3Recovered|description^null” bg_image_repeat=”no-repeat” row_type=”row” use_row_as_full_screen_section=”yes” type=”full_width” angled_section=”no” text_align=”center” background_image=”2710″ background_image_as_pattern=”without_pattern” background_color=”rgba(183,183,183,0.56)” padding_top=”200″ el_class=”shadowclass”][vc_column][vc_empty_space height=”350px”][/vc_column][/vc_row][vc_row parallax=”content-moving-fade” parallax_content=”parallax_content_value” fadeout_row=”fadeout_row_value” fadeout_start_effect=”50″ row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern” css=”.vc_custom_1469011922696{margin-top: 0px !important;margin-right: 0px !important;margin-bottom: 0px !important;margin-left: 0px !important;border-top-width: 0px !important;border-right-width: 0px !important;border-bottom-width: 0px !important;border-left-width: 0px !important;padding-top: 60px !important;padding-right: 20px !important;padding-left: 20px !important;}”][vc_column][ultimate_heading sub_heading_color=”#000000″ margin_design_tab_text=”” sub_heading_font_family=”font_family:Asar|font_call:Asar” sub_heading_font_size=”desktop:22px;” sub_heading_line_height=”desktop:30px;”]You already know how valuable it is to invest in precious metals. Whether your aim is to preserve the purchasing power of your Dollars, want a better diversified portfolio, or have concerns about the economy of the United States and where it is heading, investing in physical bullion is a fullproof means to ensure that your wealth is safeguarded.[/ultimate_heading][ultimate_heading sub_heading_color=”#000000″ margin_design_tab_text=”” sub_heading_font_family=”font_family:Asar|font_call:Asar” sub_heading_font_size=”desktop:22px;” sub_heading_line_height=”desktop:30px;” sub_heading_style=”font-weight:bold;”]There are numerous forms of investing in precious metals. You can invest via[/ultimate_heading][/vc_column][/vc_row][vc_row row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern” css=”.vc_custom_1468911242602{padding-top: 55px !important;}”][vc_column width=”1/2″][bsf-info-box icon=”Defaults-hand-o-right” icon_size=”28″ icon_color=”#ffffff” icon_style=”circle” icon_color_bg=”#238ddd” icon_animation=”bounceInLeft” pos=”left” desc_font=”font_family:Asar|font_call:Asar” desc_font_size=”desktop:22px;” desc_font_line_height=”desktop:30px;” desc_font_color=”#000000″]Stocks and mutual funds holding shares in mining companies[/bsf-info-box][bsf-info-box icon=”Defaults-hand-o-right” icon_size=”28″ icon_color=”#ffffff” icon_style=”circle” icon_color_bg=”#238ddd” icon_animation=”bounceInLeft” pos=”left” desc_font=”font_family:Asar|font_call:Asar” desc_font_size=”desktop:22px;” desc_font_line_height=”desktop:30px;” desc_font_color=”#000000″]Exchange Traded Funds (ETF) that hold bullion[/bsf-info-box][bsf-info-box icon=”Defaults-hand-o-right” icon_size=”28″ icon_color=”#ffffff” icon_style=”circle” icon_color_bg=”#238ddd” icon_animation=”bounceInLeft” pos=”left” desc_font=”font_family:Asar|font_call:Asar” desc_font_size=”desktop:22px;” desc_font_line_height=”desktop:30px;” desc_font_color=”#000000″]SPDR Gold Shares(GLD)[/bsf-info-box][bsf-info-box icon=”Defaults-hand-o-right” icon_size=”28″ icon_color=”#ffffff” icon_style=”circle” icon_color_bg=”#238ddd” icon_animation=”bounceInLeft” pos=”left” desc_font=”font_family:Asar|font_call:Asar” desc_font_size=”desktop:22px;” desc_font_line_height=”desktop:30px;” desc_font_color=”#000000″]Physical Platinum Shares (PPLT)[/bsf-info-box][bsf-info-box icon=”Defaults-hand-o-right” icon_size=”28″ icon_color=”#ffffff” icon_style=”circle” icon_color_bg=”#238ddd” icon_animation=”bounceInLeft” pos=”left” desc_font=”font_family:Asar|font_call:Asar” desc_font_size=”desktop:22px;” desc_font_line_height=”desktop:30px;” desc_font_color=”#000000″]ETFS Physical Palladium Shares (PALL)[/bsf-info-box][bsf-info-box icon=”Defaults-hand-o-right” icon_size=”28″ icon_color=”#ffffff” icon_style=”circle” icon_color_bg=”#238ddd” icon_animation=”bounceInLeft” pos=”left” desc_font=”font_family:Asar|font_call:Asar” desc_font_size=”desktop:22px;” desc_font_line_height=”desktop:30px;” desc_font_color=”#000000″]Silver (SLV)[/bsf-info-box][bsf-info-box icon=”Defaults-hand-o-right” icon_size=”28″ icon_color=”#ffffff” icon_style=”circle” icon_color_bg=”#238ddd” icon_animation=”bounceInLeft” pos=”left” desc_font=”font_family:Asar|font_call:Asar” desc_font_size=”desktop:22px;” desc_font_line_height=”desktop:30px;” desc_font_color=”#000000″]U.S. Mint Buffalo Gold, American Eagle, Chinese Panda, Canadian Maple Leaf, British Sovereigns, Vienna Philharmonics, Mexican Gold 50 Pesos.[/bsf-info-box][/vc_column][vc_column width=”1/2″][bsf-info-box icon=”Defaults-hand-o-right” icon_size=”28″ icon_color=”#ffffff” icon_style=”circle” icon_color_bg=”#238ddd” icon_animation=”bounceInLeft” pos=”left” desc_font=”font_family:Asar|font_call:Asar” desc_font_size=”desktop:22px;” desc_font_line_height=”desktop:30px;” desc_font_color=”#000000″]Australian Koala, American Eagle ,Canadian Maple Leafs.[/bsf-info-box][bsf-info-box icon=”Defaults-hand-o-right” icon_size=”28″ icon_color=”#ffffff” icon_style=”circle” icon_color_bg=”#238ddd” icon_animation=”bounceInLeft” pos=”left” desc_font=”font_family:Asar|font_call:Asar” desc_font_size=”desktop:22px;” desc_font_line_height=”desktop:30px;” desc_font_color=”#000000″]Canadian Maple Leafs[/bsf-info-box][bsf-info-box icon=”Defaults-hand-o-right” icon_size=”28″ icon_color=”#ffffff” icon_style=”circle” icon_color_bg=”#238ddd” icon_animation=”bounceInLeft” pos=”left” desc_font=”font_family:Asar|font_call:Asar” desc_font_size=”desktop:22px;” desc_font_line_height=”desktop:30px;” desc_font_color=”#000000″]Canadian Silver Maple Leafs, Silver Australian Kookaburra, Silver American Eagle, Silver Australian Koala, Austrian Vienna Philharmonic.[/bsf-info-box][bsf-info-box icon=”Defaults-hand-o-right” icon_size=”28″ icon_color=”#ffffff” icon_style=”circle” icon_color_bg=”#238ddd” icon_animation=”bounceInLeft” pos=”left” desc_font=”font_family:Asar|font_call:Asar” desc_font_size=”desktop:22px;” desc_font_line_height=”desktop:30px;” desc_font_color=”#000000″]Bullion–Bars are manufactured by  government mints, as well as independent companies such as PAMP, Johnson Matthey , Pan American Silver, Wall Street Mint, Credit Suisse and Engelhard.[/bsf-info-box][bsf-info-box icon=”Defaults-hand-o-right” icon_size=”28″ icon_color=”#ffffff” icon_style=”circle” icon_color_bg=”#238ddd” icon_animation=”bounceInLeft” pos=”left” desc_font=”font_family:Asar|font_call:Asar” desc_font_size=”desktop:22px;” desc_font_line_height=”desktop:30px;” desc_font_color=”#000000″]Numismatic coins (many have collector value that exceeds the meltdown value)[/bsf-info-box][/vc_column][/vc_row][vc_row row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern” css=”.vc_custom_1468862917553{padding-top: 12px !important;}”][vc_column css=”.vc_custom_1468909873712{padding-top: 40px !important;}”][ultimate_heading sub_heading_color=”#000000″ margin_design_tab_text=”” sub_heading_font_family=”font_family:Asar|font_call:Asar” sub_heading_font_size=”desktop:22px;” sub_heading_line_height=”desktop:30px;”]Many investors know that they can invest their IRA’s or 401k’s in precious metals through a publicly traded vehicle such as bullion ETFs. What many investors may not realize is that they can also use their IRA, 401k, 403b or Roth arrangements to invest in physical bullion without taking a distribution. They can manage this through a self directed IRA or self directed 401k.

If you already have a self directed IRA, then you may know it’s possible for you to invest in physical bullion coins and bars(Gold, Silver, Platinum, and Palladium) with your SDIRA funds.[/ultimate_heading][ult_content_box bg_color=”#25a0e8″ box_shadow=”horizontal:px|vertical:px|blur:px|spread:px|color:rgb(247, 247, 247)|style:none|” padding=”padding:5px;” margin=”margin:5px;” hover_box_shadow=”horizontal:px|vertical:px|blur:px|spread:px|color:rgb(247, 247, 247)|style:none|”][ultimate_heading sub_heading_color=”#ffffff” margin_design_tab_text=”” sub_heading_font_family=”font_family:Andika|font_call:Andika” sub_heading_font_size=”desktop:18px;” sub_heading_line_height=”desktop:24px;” sub_heading_style=”font-style:italic;”]We aim at this page to educate you about the self directed IRA rules and regulations governing a precious metals backed IRA.While this can be done easily enough, you must make sure to comply with the rules written in the Internal Revenue Code (IRC). If you abide correctly by these rules, then you can be comforted knowing that your physical precious metals investments are helping you to safeguard the purchasing power of your retirement funds.[/ultimate_heading][/ult_content_box][/vc_column][/vc_row][vc_row row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern”][vc_column][vc_column_text]

Types of Self Directed Retirement Accounts

[/vc_column_text][vc_text_separator title=”” color=”black” border_width=”2″ border=”no”][/vc_column][/vc_row][vc_row row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern” css=”.vc_custom_1468862917553{padding-top: 12px !important;}”][vc_column][vc_row_inner row_type=”row” type=”full_width” text_align=”left” css_animation=””][vc_column_inner][vc_column_text]The IRC, or ‘internal revenue code’, also referred to as the USC (U.S. Code), specifically Title 26 under sections 401 through 409A, spells out the definition of different kinds of retirement plans. Usually referred as:

and these plans include –[/vc_column_text][/vc_column_inner][/vc_row_inner][vc_row_inner row_type=”row” type=”full_width” text_align=”center” css_animation=”” css=”.vc_custom_1470041039027{padding-top: 12px !important;}”][vc_column_inner width=”1/2″][bsf-info-box icon=”Defaults-check” icon_size=”25″ icon_color=”#81d742″ icon_animation=”pulse” title=”401(k)s” title_font_size=”desktop:20px;”][/bsf-info-box][bsf-info-box icon=”Defaults-check” icon_size=”25″ icon_color=”#81d742″ icon_animation=”pulse” title=”Solo 401(K)s” title_font_size=”desktop:20px;”][/bsf-info-box][bsf-info-box icon=”Defaults-check” icon_size=”25″ icon_color=”#81d742″ icon_animation=”pulse” title=”Individual 401(K)s” title_font_size=”desktop:20px;”][/bsf-info-box][bsf-info-box icon=”Defaults-check” icon_size=”25″ icon_color=”#81d742″ icon_animation=”pulse” title=”Simple IRAs” title_font_size=”desktop:20px;”][/bsf-info-box][bsf-info-box icon=”Defaults-check” icon_size=”25″ icon_color=”#81d742″ icon_animation=”pulse” title=”Roth IRAs”][/bsf-info-box][/vc_column_inner][vc_column_inner width=”1/2″][bsf-info-box icon=”Defaults-check” icon_size=”25″ icon_color=”#81d742″ icon_animation=”pulse” title=”Sep IRAs” title_font_size=”desktop:20px;”][/bsf-info-box][bsf-info-box icon=”Defaults-check” icon_size=”25″ icon_color=”#81d742″ icon_animation=”pulse” title=”Inherited IRAs” title_font_size=”desktop:20px;”][/bsf-info-box][bsf-info-box icon=”Defaults-check” icon_size=”25″ icon_color=”#81d742″ icon_animation=”pulse” title=”Rollover IRAs” title_font_size=”desktop:20px;”][/bsf-info-box][bsf-info-box icon=”Defaults-check” icon_size=”25″ icon_color=”#81d742″ icon_animation=”pulse” title=”Traditional IRAs” title_font_size=”desktop:20px;”][/bsf-info-box][bsf-info-box icon=”Defaults-check” icon_size=”25″ icon_color=”#81d742″ icon_animation=”pulse” title=”403(b)s” title_font_size=”desktop:20px;”][/bsf-info-box][/vc_column_inner][/vc_row_inner][vc_row_inner row_type=”row” type=”full_width” text_align=”left” css_animation=””][vc_column_inner][vc_column_text]and many other commonly named plans such as these. All of these plans are forms of either IRA accounts or Individual IRA accounts. Pension plans or their equivalent are not included in the discussion. It should be noted that when one is attempting to invest through one of these types of retirement accounts, the rules of governance will vary slightly due to the fact they are governed by both the IRC and the ERISA (Employee Retirement Income Security Act), specifically USC Title 29 – Chapter 18.[/vc_column_text][/vc_column_inner][/vc_row_inner][/vc_column][/vc_row][vc_row row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern” css=”.vc_custom_1470041555385{padding-top: 40px !important;}”][vc_column][vc_column_text]

Precious Metals – Self Directed Retirement Account Rules

[/vc_column_text][vc_text_separator title=”” color=”black” border_width=”2″ border=”no”][/vc_column][/vc_row][vc_row row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern”][vc_column][vc_row_inner row_type=”row” type=”full_width” text_align=”left” css_animation=””][vc_column_inner width=”2/3″][vc_column_text]

Under IRC Section 408(m)(2) it is clearly stated that any stamp, coin, metal, or gem is defined as being ‘collectible’. In Section 408(m)(1) it states that (paraphrase) ‘acquisition by an IRA or an individual directed account regarding any collectible will be treated as being a distribution in an amount that is equal to the cost of such an account for said collectible’. It is clear, based on these 2 statements, that retirement accounts may not be used to invest in coins or metals. That would be deemed a ‘distribution’.

As with most laws of governance there are some exceptions that are provided for in Section 408(m)(3) of the IRC, stating that –

The term ‘collectible’, for the purposes intended in this subsection, will not include the following:

Any type of coin which is

[/vc_column_text][/vc_column_inner][vc_column_inner width=”1/3″ css=”.vc_custom_1470042217789{margin-top: 0px !important;margin-right: 60px !important;margin-bottom: 0px !important;margin-left: 60px !important;}”][ult_animation_block animation=”bounce” animation_duration=”2″ animation_delay=”0″ animation_iteration_count=”1″ opacity_start_effect=”80″][/ult_animation_block][/vc_column_inner][/vc_row_inner][vc_row_inner row_type=”row” type=”full_width” text_align=”left” css_animation=”” css=”.vc_custom_1470041574920{padding-top: 12px !important;}”][vc_column_inner][bsf-info-box icon=”Defaults-arrow-right” icon_size=”25″ icon_color=”#f06624″ pos=”left”]Deemed as being a ‘gold coin’ as described in USC Title 31 under Section 5112(a), in paragraphs 7 through 10[/bsf-info-box][bsf-info-box icon=”Defaults-arrow-right” icon_size=”25″ icon_color=”#f06624″ pos=”left”]A Silver coin as described in USC Title 31 under Section 5112(e).[/bsf-info-box][bsf-info-box icon=”Defaults-arrow-right” icon_size=”25″ icon_color=”#f06624″ pos=”left”]A Platinum coin as described in USC Title 31 under Section 5112(k).[/bsf-info-box][bsf-info-box icon=”Defaults-arrow-right” icon_size=”25″ icon_color=”#f06624″ pos=”left”]A coin that was issued under any State Laws.[/bsf-info-box][/vc_column_inner][/vc_row_inner][vc_row_inner row_type=”row” type=”full_width” text_align=”left” css_animation=””][vc_column_inner][vc_column_text]or any gold, silver, palladium, or platinum bullion of fineness that equals or exceeds the set minimum fineness required by the contract market for metals that might be delivered satisfactorily in regard to any regulated futures contract, if that bullion is in physical possession of the retirement account’s trustee.

What this exception means is that we’re permitted only to invest in gold, silver, palladium, and platinum bullion and coins[/vc_column_text][/vc_column_inner][/vc_row_inner][/vc_column][/vc_row][vc_row row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern” css=”.vc_custom_1470048652765{padding-top: 35px !important;}”][vc_column][vc_column_text]

Gold IRA Rules – Investing in Gold Coins

[/vc_column_text][vc_text_separator title=”” color=”black” style=”double” border_width=”2″ border=”no” css=”.vc_custom_1464176289107{margin-top: 10px !important;}”][/vc_column][/vc_row][vc_row row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern” css=”.vc_custom_1468916330223{padding-top: 35px !important;}”][vc_column][vc_column_text]As already noted above the gold coins that are permitted need to be meet certain specifications like:

1. A $50 gold coin needs to be 32.7mm in diameter and weigh 33.931gm, and contain 1 oz. of troy fine gold.Gold IRA

2. A $25 gold coin needs to be 27.0mm in diameter, weigh 16.966gm, and contain 1/2 oz. of troy fine gold.

3. A $10 gold coin needs to be 22.0mm in diameter, weigh 8.483gm, and contain 1/4th oz. of troy fine gold.

4. A $5 gold coin needs to be 16.5mm in diameter, weigh 3.393gm, and contain 1/10th oz. of troy fine gold.

These coins must also have a specific design:

On the front side there needs to be a design that’s symbolic of Liberty. On the back side there needs to be a design that represents an eagle family, with the male holding an olive branch while flying above the nest that holds the female and hatchlings.

They must have inscriptions representing the mint year and issuing year along with the words:

1. Liberty
2. E Pluribus Unum
3. In God We Trust
4. United States of America

Every coin must have been minted, as well as issued, by the Sec. of the Treasury before it is allowed into anyone’s retirement account.

Coins Meeting Gold IRA Rules

We have lots of coins with similar names and similar physical appearances. Those requirements mentioned above MUST be met. The following are some examples of different coins that meet those requirements:

1. Gold American Buffalo.
2. Gold American Eagle.[/vc_column_text][/vc_column][/vc_row][vc_row row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern” css=”.vc_custom_1470048652765{padding-top: 35px !important;}”][vc_column][vc_column_text]

Silver IRA Rules – Investing in Silver Coins

[/vc_column_text][vc_text_separator title=”” color=”black” style=”double” border_width=”2″ border=”no” css=”.vc_custom_1464176289107{margin-top: 10px !important;}”][/vc_column][/vc_row][vc_row row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern” css=”.vc_custom_1468916330223{padding-top: 35px !important;}”][vc_column][vc_column_text]We indicated the rules above and established that for silver coins to be permitted, they must meet certain specifications like –

1. 40.6mm in diameter weighing 31.103gm.silver IRA
2. Liberty Symbol on Front Side.
3. Eagle design on the Back.
4. Inscriptions representing mint or issuance year.
5. The words ‘In God We Trust, Liberty, 1 oz. fine gold, One Dollar, E Pluribus Unum, or United States of America’.
6. Reeded Edges
7. Minted & Issued by the Sec. of Treasury to be allowed in a retirement account.

Here are a couple of other coins that meet with the Silver IRA rules –

  •  Silver American Eagle
  • Platinum IRA

Platinum Coin Investing

Again, we saw above that permitted platinum coins must meet with certain specifications. The Secretary can mint and issue proof platinum IRAplatinum coins only if they meet with all required specifications, quantities, designs, inscriptions, and varieties as the Secretary prescribes from time to time.

Many coins look the same and have similar names and here are some examples that meet the requirements laid out above :

  •  Platinum American Eagle

[/vc_column_text][/vc_column][/vc_row][vc_row row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern” css=”.vc_custom_1470048652765{padding-top: 35px !important;}”][vc_column][vc_column_text]

Rules Governing Gold Bullion IRA’s

[/vc_column_text][vc_text_separator title=”” color=”black” style=”double” border_width=”2″ border=”no” css=”.vc_custom_1464176289107{margin-top: 10px !important;}”][/vc_column][/vc_row][vc_row row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern” css=”.vc_custom_1468916330223{padding-top: 35px !important;}”][vc_column][vc_column_text]As stated in the rules, for metals like gold, silver, palladium, or platinum to be permitted, they need to be made of a specific fineness that is equal to or exceeds the contract market gold bullion irarequirements for such metals, to satisfy regulated futures contracts, like –

(1) Gold Futures – Must be 0.995 fineness (required by COMEX Rulebook Chap. 113)
(2). Silver Futures – Must be 0.999 fineness (required by COMEX Rulebook Chap. 112).
(3). Platinum Futures – Must be 99.95% pure (required by COMEX Rulebook Chap. 105).
(4). Palladium Futures – Must be 99.95% pure (required by COMEX Rulebook Chap. 106).

We currently have only one that has been approved by the U.S. Commodity Futures Trading Commission, which is COMEX (the Commodity Exchange, Inc.) as the designated Contracts Markets regarding metals future contract market. This limits us to the specifications as laid out by COMEX.

The information above lays out the quality and fineness requirements for precious metals, however, there’s no definition within the IRC in regards to what constitutes ‘bullion’. We can ascertain some information from prior case law, which leaves us with the most often accepted term defined like this –

The term ‘gold & silver intended to be coined’ is attributed to quantities of these metals that are ready to be minted but are as of now lying in plates, bars, lumps, or some other form. It can also apply to ornaments or dishes made of gold or silver, or even foreign coins not currently money, when the intention is to be descriptive of a metal’s adaptability for being coined, and not meant for describing any other purposes it may be used for.[/vc_column_text][/vc_column][/vc_row][vc_row row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern” css=”.vc_custom_1470048652765{padding-top: 35px !important;}”][vc_column][vc_column_text]

Storing Precious Metals in an IRA

[/vc_column_text][vc_text_separator title=”” color=”black” style=”double” border_width=”2″ border=”no” css=”.vc_custom_1464176289107{margin-top: 10px !important;}”][/vc_column][/vc_row][vc_row row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern” css=”.vc_custom_1468916330223{padding-top: 35px !important;}”][vc_column][vc_column_text]The Storage Vault – This is the second part of the requirements for investment metals –

Bullion is clearly specified within IRC Section 408(m)(3)(B) and it says:

‘The investment must be in physical possession of the retirement account trustee’.

When it comes to coins, the definition is not so clear. Under IRC Section 4975(c)(1)(C) the term ‘prohibited transaction’ is defined as meaning any direct or indirect furnishing of services, goods, or facilities between any plan and any disqualified person. This precludes use of the account owner’s facilities, or any facilities under direct control of an account owner who has been designated as a disqualified person under IRC Section 4975(e)(2). The account owner is deemed to be a fiduciary under IRC Section 4975(e)(2)(A), and this applies to any person exercising any discretionary authority, or having any control over the management of such a plan, or who exercises any authority or control in respect to the management or the disposition of its assets.

agent-talkingPhysical possession by the trustee of the IRA does not automatically mean that trustee gets to decide where assets get deposited, how they are stored, or when they can be moved in order to safe-guard the investment. The account owner is the one who owns it and therefore makes the decisions as to how to appropriately direct that trustee concerning the plan.

There are trustees who may offer ‘in-house’ sage-guarding facilities in the form of a value-added service for their clients. Others might work within the framework of depository services.

Whatever method is used, it needs to be noted that trustees are the only ones who can access the metals as well as control sales and purchases, even though it is all done under the direction of the owner of the account or any representative they may have authorized.

This is an overview of the Gold IRA rules to give you some insight into how things work in regard to investing in your IRA with precious metals. We hope this has been helpful and steers you toward a consideration of investing in your own Gold IRA.


Disclosure and Disclaimer: The information included in this article is based on material currently available at the time of writing this article. Conclusions in the articles are based on our own opinion. This article is purely for education and educational discussion purposes. While readers of the article may make investments based on the information provided in this article, the readers should be fully aware that there is no intent by us or the company GoldIRAKnights.com to provide investment advice or recommendations solely based on this article, or any intent by the us or GoldIRAKnights.com to solicit or promote any investment products mentioned in this article. If any reader intends to make any investment, whether based on this article or otherwise, we recommend that they work with knowledgeable professionals who can guide them through specific details pertaining to their situations, after they have disclosed the pertinent facts to such professionals.[/vc_column_text][/vc_column][/vc_row]