Precious metals IRAs are typically self-directed IRAs, where the custodian allows you to store a broad range of precious metals investments. This includes storage options for IRS-approved coins and bars in gold, silver, platinum, and palladium.
As the name suggests, a home storage gold IRA allows you to invest in gold and other precious metals and store them at home. Unlike a traditional precious metals IRA account, where the assets are stored in a depository, this option lets you store your physical assets at home.
Is A Home Storage Gold IRA Legal ?
A simple answer to this is ‘No.’ In fact, the IRS has specific criteria for what they deem “acceptable storage” of precious metals within an IRA. If the IRS determines that your chosen gold IRA storage method doesn’t meet their standards, you could potentially face substantial tax penalties.
No need to worry if you’re unfamiliar with acceptable storage options according to IRS regulations. We will delve into this topic later on.
Managing risk in this way is critical to long-term success as a risk-averse investor. Unless you can diversify the categories of risk to which you expose your wealth, you run the risk of taking significant losses due to market events that can disrupt your retirement plans.
The Custodian Requirement
A Gold IRA custodian is a financial entity that holds and protects the physical gold in your retirement account (IRA). These custodians help you open a gold IRA investment account while ensuring that your gold investment and its storage comply with Internal Revenue Service (IRS) regulations.
Your gold IRA custodian will help ensure proper maintenance and management of your gold assets, handling all the work for you while you own gold in your IRA account. This is especially beneficial compared to owning gold in self-custody, where you would have to go through the hassle of managing, securing, insuring and maintaining your assets.
