Home storage gold IRAs are an attractive option, but there are significant requirements to meet and penalties for not complying with the rules. Before investing, it’s important to read up on the rules and make sure you understand what is required before making a decision.
Can i Setup a Home Storage Gold IRA?
The short answer is yes, but there are several important requirements that must be met in order for it to be compliant with IRS rules.
In order to qualify for a home storage Gold IRA, you must meet the following list of qualifications. If you don’t meet these qualifications, your purchase will be treated as a taxable deduction from your IRA.
The requirements for a home storage Gold IRA are:
- You must have a limited liability company (LLC) set up in your name with a written operating agreement.
- After incorporation, you must have a minimum net worth of $250,000.
- All employees and trustees of the business must obtain corporate insurance through a $250,000 fidelity bond.
- The trustee corporation for your IRA must have a business location that is open to the public.
- You must have corporate legal counsel on retainer and provide an annual audit by a qualified public accountant.
What Does the IRS Say About Home Storage Gold IRAs?
The Internal Revenue Service (IRS) does not explicitly prohibit or allow gold IRAs to be stored at home. However, there are several important considerations to take into account if you are considering storing your gold IRA at home (see above).
Are There Any Penalties or Taxes For Incorrectly Opening a Home Storage Gold IRA?
If the IRS finds that you have not complied with the rules for opening and maintaining a home storage gold IRA, they may impose penalties or taxes. Some of the possible penalties include:
-You may be subject to a 10% early withdrawal penalty if you take money out of your IRA before you reach age 59 1/2.
-You may owe income taxes on the money you withdraw from your IRA.
-Your IRA may be disqualified, which means you would no longer be able to make tax-deductible contributions to it.
Even if you could set up a home storage gold IRA, we highly advise not to. There are much easier (and safer) ways to invest in gold without having to go through the hassle of setting up an LLC and meeting all the other requirements.
We would instead highly recommend you to seek advice at an approved IRA Custodian that offers gold IRAs, such as Goldco. They will be able to help you set up and invest in a gold IRA with much less hassle on your part.