Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
Silver Outlook Is 'Excellent' - 23rd July 19
Why The Coming Silver Rally Might Be The Greatest - 23rd July 19
We Are in for Decades of Ultra-Loose Monetary Policy - 23rd July 19
Gold & Gold GDX Stocks Ripping. What’s Next? - 23rd July 19
Stock Market Breadth Warning Signs for the Stock Market’s Rally? - 23rd July 19
U.S. Recession Watch: The Six-Cycle Forecast - 23rd July 19
US Dollar Index tightly wound between: US Bond Yields down on safety flows - 23rd July 19
Stocks Bull or Bear? The Market’s Message - 23rd July 19
This Dividend Aristocrat Is Leading the 5G Revolution - 22nd July 19
What the World Doesn’t Need Now is Lower Interest Rates - 22nd July 19
My Biggest 'Fear' For Silver - 22nd July 19
Reasons to Buy Pre-Owned Luxury Car from a Certified Dealer - 22nd July 19
Stock Market Increasing Technical Weakness - 22nd July 19
What Could The Next Gold Rally Look Like? - 22nd July 19
Stock Markets Setting Up For A Volatility Explosion – Are You Ready? - 22nd July 19
Anatomy of an Impulse Move in Gold and Silver Precious Metals - 22nd July 19
What you Really need to Know about the Stock Market - 22nd July 19
Has Next UK Financial Crisis Just Started? Bank Accounts Being Frozen - 21st July 19
Silver to Continue Lagging Gold, Will Struggle to Overcome $17 - 21st July 19
What’s With all the Weird Weather?  - 21st July 19
Halifax Stopping Customers Withdrawing Funds Online - UK Brexit Banking Crisis Starting? - 21st July 19
US House Prices Trend Forecast 2019 to 2021 - 20th July 19
MICROSOFT Cortana, Azure AI Platform Machine Intelligence Stock Investing Video - 20th July 19
Africa Rising – Population Explosion, Geopolitical and Economic Consquences - 20th July 19
Gold Mining Stocks Q2’19 Results Analysis - 20th July 19
This Is Your Last Chance to Dump Netflix Stock - 19th July 19
Gold and US Stock Mid Term Election and Decade Cycles - 19th July 19
Precious Metals Big Picture, as Silver Gets on its Horse - 19th July 19
This Technology Everyone Laughed Off Is Quietly Changing the World - 19th July 19
Green Tech Stocks To Watch - 19th July 19
Double Top In Transportation and Metals Breakout Are Key Stock Market Topping Signals - 18th July 19
AI Machine Learning PC Custom Build Specs for £2,500 - Scan Computers 3SX - 18th July 19
The Best “Pick-and-Shovel” Play for the Online Grocery Boom - 18th July 19
Is the Stock Market Rally Floating on Thin Air? - 18th July 19
Biotech Stocks With Near Term Catalysts - 18th July 19
SPX Consolidating, GBP and CAD Could be in Focus - 18th July 19

Market Oracle FREE Newsletter

Top AI Stocks Investing to Profit from the Machine Intelligence Mega-trend

The Evolution of the Gold and Silver IRA

Commodities / Gold and Silver 2013 Sep 27, 2013 - 12:24 PM GMT

By: Dr_Jeff_Lewis

Commodities

Precious metals currently look like a no brainer investment in a world of market volatility, rehypothecation, massive bail ins and outs, and a growing number of templates for taking people’s retirement assets away.

Many are familiar with the option of keeping precious metals in an IRA. Those who understandably refuse to take the penalty for cashing out in order to take full personal possession have the next best option and a way to get control of their metal.


A Historical Perspective

Self-Directed IRAs were first introduced in the United States in 1975, shortly after the inception of the IRA.

Soon thereafter, trust companies and custodians started allowing alternative asset classes such as real estate, foreign real estate, REITS, private equity, promissory notes, and certain precious metals to be held in self-directed IRAs.

One recommended custodian, IRA Services Trust, was one of the first to do this.

Traditional Self-directed IRAs versus IRA LLCs

Traditional self-directed IRAs do not allow personal possession of precious metals, whereas the IRA LLC does. Both have deferred taxation benefits pursuant to the retirement tax code.

Traditional self-directed IRAs require that PMs be held at a qualified depository, most of which are in Delaware, and many also have a large percentage of COMEX holdings.

They are typically not especially costly to set up, but they can incur considerable storage, maintenance, and transaction fees over time. Most sovereign bullion coins, U.S., Canadian, Perth, etc… are accepted, as well as "other 999 bullion."

For the security minded retirement investor, the IRA LLC allows an investor to take personal delivery with no taxes or penalties incurred. Precious metal shipping costs are free in most cases, and shipping and supply turnaround times will depend on market conditions, but are currently only a couple of weeks or less.

The New Age

The new wave of retirement funds are allowed to keep their tax deferred status, but still allow an individual to choose how their funds are allocated. In other words, you can hold cash, investments, physical silver and gold.

The IRA LLC allows for any investment that is not a prohibited transaction, including cash in the IRA LLC bank account, stocks, bonds, private placements, oil and gas leases, investment real estate, precious metals in your closet, etc…
 
An IRA LLC is not subject to annual audits, although anyone subject to U.S. taxes is subject to an IRS audit, so one would just need to be able to furnish the assets of the IRA LLC. The basic annual requirement is merely the reporting of the LLC’s assets.

The real advantage of the IRA LLC is that it acts as an emergency hedge, without requiring that you leave the system entirely. There is no penalty in using one, and you can still put the assets to work for you and leverage your precious metals as collateral.

American Eagles are the only coins eligible for personal holding within such an IRA LLC. Other bullion is allowable in traditional self-directed PM IRAs, but they cannot be held personally, only in a depository.

Some 401 retirement plans allow the participant to periodically withdraw into an IRA while still contributing and building their 401 plan. Old 401 plans are free to rollover.

Australia’s Retirement Program

In Australia, you can choose where you invest your retirement money, however under stricter guidelines and yearly audits.

Property and borrowing for certain investment properties are allowed, as well as stocks, authorized property funds, gold and silver. Other investments are also permitted, although mainly bricks and mortar.

These plans have tax benefits and once it reaches maturity, they offer excellent tax free incentives. However, these plans are much more costly to set up and audits are much more expensive. It is recommended to have at least $100k at set up to make them worthwhile.

Such precious metal retirement programs are not the same or as cheap as the "option" of holding unencumbered metal under your direct control or possession, but they seem to be the next best thing since they are not potentially worthless digital or paper assets.

For more articles like this, and/or for a breath of fresh silver market reality amidst the stench of denial and technically meaningless short term price obsessed madness, check out http://www.silver-coin-investor.com

By Dr. Jeff Lewis

    Dr. Jeffrey Lewis, in addition to running a busy medical practice, is the editor of Silver-Coin-Investor.com

    Copyright © 2013 Dr. Jeff Lewis- All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Dr. Jeff Lewis Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules