CompleteIRA Logo

Like a lot of people during this season; we've taken a hard look at what drives us.

We are revamping our site with a FAQ that's more than 10x bigger and tools to help more people self-direct their retirement, efficiently and effectively, for a stronger tomorrow.

We're adding new staff and partners to make monthly Q&A and opportunity discussion calls. Support be faster while remaining just as accurate.

During this time, we're taking care of clients (and their referrals) exclusively. We can't wait to roll out a new, better, future for self-directed investors.

888-595-7313 // [email protected]

Here's our (semi-private) write-up on precious metals...

There's IRA and Solo 401k info in this; but it's a (fairly) quick read and it's good to understand some of the differences. Reach out if anything is unclear.

If the biggest question is:
'What do most people do and how does this save me in taxes?'

The answer is:
We see most people store metal using a local solution for at least part of their metal with a Solo 401k for their 'CYA' emergency metal, and then trade the gold/silver ratio and jump in/out of the market with no worries at all about capital gains tax using an account at SilverBullion/BullionVault for ROI focused metal.

This gives them direct control, the ability to buy/sell locally, and the ability to trade in/out of gold/silver without having to think about capital gains tax on those gains.
Want more details? Perfect. Buckle-up.
For people with IRA LLC's looking to store physical metals outside the US there's a couple thoughts:
COMEX-friendly precious metal is IRA-friendly precious metal.Storing overseas outside of an approved depository or bank means trouble, technically, and that applies to an IRA using an LLC or not.The IRS knows people store all sorts of metal locally and abroad and have for decades. while they say 'You'd better not' they've taken no action in over 20 years? Seems worth noting and may give insight into their thinking on the legality of the action and/or the validity of the rule against it.
Here's the IRS page (kept up to date) on approved storage (remembering the 'LLC' doesn't impact the need to use this list in the publicly-stated-view of the IRS):

...Nothing in Singapore is on that list; and all the previously approved overseas options are gone. I'm not sure if they've been moved to another list or they're no longer approved. I haven't heard back from either request for information sent and nor have I heard any of the IRAs storing metals there previously seemingly run into trouble.

Personally, I'm comfortable with family member's IRAs funding accounts at Silver Bullion to invest in metal as the 'base' of the IRA is inside the US, as-is the indicia of ownership, and it seems much less 'offensive' to the IRS guidelines than local storage (which they haven't made trouble over either). ...but if the IRS suddenly did decide to tackle these; I'd lose sleep for sure.

To each their own.

Life isn't fair. ...and sometimes that's in our favor. When a person uses a Solo 401k they can buy and store without having to worry about these limitations.

Here's the summary on approved metals and locations covering IRAs, 401ks, and IRA LLCs

What an IRA can buy
US Gold Eagle (bullion or proof).US Silver Eagle (bullion or proof).Any US issued platinum coin.Any coin issued by a US state.Any other gold, silver, platinum, or palladium bar or bullion (not proof) with fineness to satisfy a futures contract (Gold .995+, Silver .999+, Platinum .9995+, Palladium .9995+) held by a trustee...that list includes (but is not limited to):Buffalos, Pandas, Britainnias (2013+), Maple Leaves, Kangaroos (and other of Australia's animals), 'Queen's Beasts', 'Lunar Year' coins, Philharmonics, Libertads...
It does NOT include:Krugerrands, Liberty & St. Gaudens, Francs, Pesos, Corona, and other assorted coins not meeting fineness requirements or even the approved coins if proof / numismatic / graded.

Where you can store it?
A US bank or approved depository offering metals storage services....that's it for 'utterly stress free'.At the bottom of your gun safe? Offshore in a paid vault? Under the shed? In a safe deposit box? It depends who you ask just how far you want to take things.
The IRS says 'you shouldn't store outside our approved methods even using an LLC' but has not brought to court any cases against IRA LLCs for such though it has been being done for decades. Is that a 'yet'? Or 'ever'? We can't say. ...but boy it'd be a bad day for anyone storing any metal if the IRS decided to yell about it.

Possible issue with Silver Bullion for storage? It's great and accountable; but it's outside US jurisdiction and not on the approved overseas list... so the IRS doesn't have to accept it as valid.Possible issue with behind the garden shed? It's inside the US; but it's easy to misappropriate.
What a Solo 401k can buy
Anything an IRA can buy.US 90% Silver (pre-1965 US coin).Krugerrands and other lower purity bullion = Practically speaking they wouldn’t be an issue in an audit unless you had an auditor in a foul mood; but if it was you'd win. The issue being you had to go to court to prove it and that’s (a terrible amount of) time and money wasted.
Where you can store it?
Anywhere in the world.No bank or depository required.At the bottom of your gun safe? Buried on a desert island? Stored on your boat? Under the shed? In a safe deposit box? You bet.As long as the indicia of ownership are inside the US / accessible to US courts life is good. (Are the records tracking activity, holdings, and account numbers saved on Dropbox? A Trustee inside the US?)
Yes, that’s dramatically different than an IRA.

What you can’t do with either an IRA or 401k
No collectible coins, graded coins, low purity coins/bars.Don’t put it on display (you’re not allowed ‘current benefit’ from retirement account assets).- Metals you already own can't be contributed to your retirement account
. It only accepts USD, and then can buy metal after that.

...the fun related bits in 408(a) and 408(m):

(3)Exception for certain coins and bullion For purposes of this subsection, the term “collectible” shall not include—

(A)any coin which is
(i)a gold coin described in paragraph (7), (8), (9), or (10) of section 5112(a) of title 31, United States Code
(ii)a silver coin described in section 5112(e) of title 31, United States Code,
(iii)a platinum coin described in section 5112(k) of title 31, United States Code, or
(iv)a coin issued under the laws of any State, or

(B)any gold, silver, platinum, or palladium bullion of a fineness equal to or exceeding the minimum fineness that a contractmarket (as described in section 5 of the Commodity Exchange Act, 7 U.S.C. 7) requires for metals which may be delivered in satisfaction of a regulated futures contract,if such bullion is in the physical possession of a trustee described under subsection
(a) of this section.

(n)BankFor purposes of subsection (a)(2), the term “bank” means
(1)any bank (as defined in section 581),
(2)an insured credit union (within the meaning of paragraph (6) or (7) of section 101 of the Federal Credit Union Act), and
(3)a corporation which, under the laws of the State of its incorporation, is subject to supervision and examination by the Commissioner of Banking or other officer of such State in charge of the administration of the banking laws of such State.

*Ok, a Solo 401k can accept contributions of metals already owned; but there are restrictions and extra paperwork so schedule a call with us and your tax advisor if it's something you'd like to learn more about.