You may have seen commercials or ads online for home storage gold IRA and wondered if they are worth investigating.
After all, what could be better than having your retirement savings tucked away in a safe at your own home, rather than at the mercy of the gold market?
But before you jump on the bandwagon, it’s important to understand exactly what a home storage gold IRA is—and whether or not it’s actually a good idea.
What is a Home Storage Gold IRA?
A home storage gold IRA is a retirement account that allows you to hold and invest in gold coins without having to keep them in a central location, like a bank, depository, or brokerage. Instead, you store the gold in your own home.
Are Home Storage Gold IRAs Even Legit?
Many people are unsure if they can keep gold in a home storage IRA.
The answer is both yes and no.
Let’s first discuss:
How To Qualify For A Home Storage Gold IRA?
You can opt for a home storage gold IRA but under a strict and large number of rules and regulations.
In order to qualify for a home storage gold IRA, you need to meet these requirements:
- You must have corporate legal counsel on the retainer
- You must have a limited liability company
- Ownership of the trustee corporation is divided among several people for added security
- Prove to have had experience handling retirement funds with a “reputable financial background
- All trustees and employees of the company must put a $250,000 fidelity bond each as corp. insurance
- Your minimum net worth must be $250,000
- The trustee corporation for your IRA must have a business location that is open to the public
Not only do you have to meet a plethora of requirements before you can even think about buying any other precious metals, but you’ll also be met with high administrative costs.
Just to open an IRA of this type, there’s a lot of paperwork and time commitments involved.
And that’s just the beginning; several other qualifications exist that you must meet before finally being approved.
Unfortunately, oftentimes the IRS closely monitors Home Storage IRAs for possible violations.
One little mistake might result in the IRS treating all of your Home Storage IRA funds as a distribution, resulting in you losing all tax-deferred advantages and even facing a 10% penalty if you’re under 59 1/2.
That’s up to 35% of your investment gone in an instant. However, it may be worse than that.
If the IRS decides the day you opened your Home Storage IRA was the date of the initial “distribution,” you’ll be responsible for future interest and penalties on previous taxes owed from that date forward.
The IRS might have made setting up a home storage IRA straightforward.
But it didn’t, by requiring that all IRAs be administered by qualified custodians.
Even a home storage IRA is, at best, an indirect method of investing in your LLC rather than the gold itself.
It still needs to be held in an account with a custodian.
What Does The Government Say About Home Storage Gold IRAs?
The US government has a number of policies and regulations in place regarding IRAs.
One of the main requirements is that all IRA assets must be held by a trustee.
This helps to protect the interests of retirees and ensures that assets are properly managed.
Additionally, all distributions and withdrawals from an IRA must be reported to the government.
This helps to ensure that taxes are properly paid on IRA assets.
While these policies may not make it easy to own and control your IRA assets, they are designed to protect your interests as a retiree.
Are There Any Penalties For Storing Gold At Home?
When it comes to retirement accounts, there are a lot of rules and regulations to follow.
After all, these accounts are designed to give you a tax break – so if you’re not following the IRS rules, you’re essentially cheating the system.
If your audit seems suspicious you’re more likely to be penalized.
And if the IRS decides that you’ve violated the rules of your IRA, they could hit you with a 10% early withdrawal penalty.
Not only that, but they could also make you pay taxes on the assets in your precious metals IRA accounts, as well as interest and penalties.
Related: 7+ Gold IRA Tax Rules To Live By
In other words, a home-storage gold IRA is not worth it.
The risks are simply too high.
If you’re going to invest in IRS-approved gold bullion, do it the right way – by opening a gold IRA account through an IRS-qualified IRA custodian.
Related: What Is IRA Eligible Gold? Full Details And Specifications
Both of these accounts allow you to hold gold as an asset, and they come with none of the headaches or hassles of home storage and the leg work is handled by your custodian too.
So, the bottom line: it’s not worth it.
Play through it and you’ll be able to enjoy all the benefits of a gold IRA.
Why Store Your Gold In A Traditional/Roth IRA Instead Of At Home?
When it comes to storing your gold, you have a few different options.
You can keep it at home, in a safe deposit box, or in a traditional or Roth IRA.
Each option has its own pros and cons, so it’s important to choose the one that’s right for you.
Here are a few things to consider when making your decision:
One of the benefits of storing your gold in an IRA is that it’s administered by a professional.
This means that you don’t have to worry about keeping track of your gold yourself or making sure it’s properly stored.
With a home storage option, you’re completely responsible for the care and administration of your gold, which can be a hassle.
Another advantage of an IRA is that there are strict rules about what types of precious metals can be stored in it.
This ensures that your investment is safe and secure.
With home storage, there are no such rules, so you could end up storing gold that isn’t as valuable or isn’t as well-protected.
One of the benefits of an IRA is that it’s regulated by the government.
This means that there are certain laws and protections in place that safeguard your investment.
With home storage, there is no such regulation, so you could be at risk if something happens to your gold.
It’s important to note that storing gold in an IRA is completely legal.
However, there are some states where storing gold at home is illegal.
Before deciding on a storage option, be sure to check the laws in your state to make sure you’re not breaking any laws.
Gold is a valuable asset, and it can be attractive to thieves.
If you store your physical gold at home, you run the risk of it being stolen.
However, if you invest in a self-directed IRA, your gold will be stored in a secure depository.
This means that it will be far less likely to be stolen, and you can rest easy knowing that your investment is safe.
Secondly, by investing in a non-home storage-based IRA, you can benefit from the protection offered by the government.
Traditional and Roth IRAs are insured by the FDIC, meaning that your investment will be protected even if the worst happens and the economy collapses.
There are a few things to consider when deciding whether to store your gold and silver coins in an IRA or at home.
Ultimately, the decision comes down to personal preference and what you feel comfortable with.
If you want the convenience and peace of mind that comes with professional administration, then a Traditional/Roth IRA might be the right choice for you.
But if you’re comfortable taking on the responsibility of storing and protecting your own gold, then keeping it at home could be a better option.
Invest In Gold IRA With Augusta
If you’re looking for the best option to invest in a gold IRA, check out our top gold IRA providers list first.
Our number one pick is Augusta Precious Metals – and boy they do offer a lot.
- A+ BBB rating? Check.
- Zero complaints since their inception? Check.
- Thousands of rave reviews? Check.
- Money Magazine’s top-pick designation? Check!
Read the complete Augusta Precious Metals Review here.
Plus, if you take advantage of their services, they’ll even pay all custodial and storage fees for up to 10 years!
Now that’s what I call an incredible deal.
You’d be hard-pressed to find another company offering even close to that level of value for their customers.
How Gold Dealers Fool You Into Home Storage Gold IRAs?
Have you seen those ads for home storage gold IRAs?
They usually show a big ol’ safe filled to the brim with gold bars, giving the impression that if you open a gold IRA, you’ll get your very own private stash of the stuff.
And not only that, but it looks like you could just keep it at home in your own personal safe!
This is highly misleading, as it’s either encouraging illegal activity or just plain old lying to people. Here’s the thing:
According to the IRS, any physical precious metals purchased for your IRA must be held with an IRS-approved bank or trustee.
Related: Gold IRA vs Physical Gold: Which is Better for You?
So those home storage gold IRA companies aren’t exactly being truthful when they tell you that you can keep your IRA-purchased gold at home.
not only that, but it’s actually against the law to do so!
So if you’re thinking about opening a gold IRA, beware of those home storage offers.
Chances are they’re not being entirely truthful with you.
Home Storage Precious Metals IRA FAQs
Can I store my IRA gold at home?
Yes, but not recommended.
Storing your gold IRA at home is not recommended for a number of reasons.
First, it’s not as secure as storing it with a custodian.
A custodian will have security measures in place to protect your gold, such as insurance and 24/7 monitoring.
Second, if your gold is stolen or damaged, you may not be covered by your insurance policy.
Most policies have exclusions for precious metals.
And finally, if you store your gold at home, you’ll have to pay storage and shipping fees every time you want to add or withdraw gold from your account.
So while you can store your IRA gold at home, it’s not advisable.
Choose a safe, secure storage option with a reputable custodian.
Are gold IRAs a good idea?
Gold IRAs can be a great way to save for retirement, but there are some dangers that you need to be aware of.
To begin with, you must ensure that the firm you are dealing with is trustworthy and has a solid track record.
There have been a lot of scams in the gold IRA industry, so you need to be careful.
Another thing to watch out for is taxes.
When you take money out of your gold IRA, you will have to pay taxes on it.
This can reduce the amount of money that you end up with in retirement.
So make sure you understand the tax implications before you invest in a gold IRA.
Who holds the gold in a gold IRA?
The gold in a gold IRA is usually held by a third-party custodian through a self-directed IRA.
This company stores the gold for the individual or organization that has invested in a gold IRA.
There are a number of different custodians to choose from, so it is important to do your research before selecting one.
Can you hold gold coins in an IRA?
Yes, you can hold gold coins and many other precious metals in an IRA.
How much does it cost to store gold in an IRA?
The cost of storing gold in an IRA varies depending on the provider.
However, most providers charge an annual storage fee as well as a commission for buying and selling gold.
Though from the above article you might have understood that holding gold in a home storage IRA is possible, but isn’t advised as the disadvantages outweigh the advantages.
We advise you to steer clear of companies that offer home storage IRAs and invest your hard-earned money in a gold IRA with a reputable gold IRA company like Augusta precious metals.