Home Storage Gold IRA: Is it Legal or Even Possible in 2023?
According to most gold IRA companies, a home storage gold IRA isn’t allowed nor permissible by the IRS. Yet you’ll occasionally run into companies advertising precisely these kinds of IRAs. And the more reputable the company, the more you’ll wonder what’s up?
As it turns out, the subject of home storage IRAs is more complex than presented. It isn’t actually disallowed by the IRS, but… the process of opening one is so convoluted that most brokerage companies would rather not bother and use an IRS-approved depository.
And indeed, for reasons I’ll outline soon, these depositories tend to be the ideal choice for both customer and company. Before we delve into the muddy waters of storing your IRA gold and silver coins at home, let’s first go over what’s necessary to manage a precious metals IRA.
Gold IRA necessity #1: Custodian
Gold IRA management is split into three parts, mostly: the gold IRA company working with the customer, the custodian, and the depository. The custodian is a separate company that manages things like paperwork and files annual reports on things like returns and what’s in the IRA.
These custodians are almost always large companies that “bulk manage” accounts for lots of different gold IRA companies. They’re highly reputable in so far as what they do, whether with the IRS or otherwise. In other words, the IRS can count on them to provide accurate information on an annual basis.
If you open a home storage gold IRA, it’s still going to be a pretty far cry from treating the precious metals as if they are a part of your home safe. You’ll still need the presence of both the brokerage company and the custodian, according to companies that offer this.
This almost goes against how gold IRAs work with their trustee system, but more on that later. For now, if you end up storing your gold, you can expect to have to work with the custody company and put in quite a bit of extra effort to get the paperwork done.
When it comes to perks of gold IRA ownership, a lot boils down to simply not having to do all that much. And by inconveniencing yourself by opting for home storage, you’ll have kind of eliminated some of these benefits. It might look like your gold will be safer and so on, but the downsides of a home storage gold ira are simply too great for many.
While the custodian manages the paperwork side of things, an approved depository handles the bullion. That brings us to our next necessity in precious metal ownership, and the one you’re trying to eliminate.
Gold IRA necessity #2: Depository
Becoming an IRS-approved depository isn’t exactly a walk in the park, so you’ll see a fairly small selection of depositories being offered by the best gold IRA companies: Brink’s, the Delaware Depository, IDS and perhaps one or two more. While these will often have facilities all around the nation, the amount of companies themselves is small.
They’re actually less numerous than even the large custodian companies, which kind of makes sense. The argument can be made that safely storing bullion is quite a bit difficult than managing accounts. In the case of all the companies mentioned, they handle storage for a variety of entities. These range from individual investors who simply don’t want to hold bullion in a place with lackluster security all the way to some of the biggest names in finance.
This means that the companies are the best in the business: they’ve spent piles of money on secure vaults that are then further reinforced by having, more often than not, armed personnel patrol the site. That’s not the only personnel these companies employ, though: they also have people in charge of inspecting the bullion regularly, usually on an annual basis, to make sure everything is in order.
See Delaware Depository video below, from around 1min 15seconds – in they start to discuss the property and security of where and how they secure your gold. The majority of the gold IRA providers we recommend later use Delaware amongst other options (you can choose).
Do you think you can replicate this level of security at home??
This part is especially important to the IRS, as it wants some kind of assurance that you haven’t been playing funny money with the bullion in your IRA. You might be entirely honest in your approach, but they don’t know that. To them, you could be misreporting the home storage IRA assets, having sold some or all of them already. How would they know?
Because of this, becoming your own bullion store for a self directed IRA through a home storage gold IRA is a difficult and multi-layered process. It definitely doesn’t hold a candle to giving around $200 a year for storage costs to a depository, especially when you take some of the less-known benefits of these depositories.
For example, most of the ones I mentioned besides Brink’s work with the gold IRA company to arrange visits to a customer that demands one. As long as you adhere to their security measures, you can inspect your bullion, even on a regular basis, to see that everything is in order.
And, again, in case you didn’t know, the physical precious metals in a depository can still be delivered to you before 59 1/2 years of age if you’re willing to incur a penalty from the IRS. IRA liquidations, when requested by the owner, can amount to a literal liquidation in the form of bullion sale or simply home delivery.
So when you understand that you can both inspect your bullion and take possession of it whenever, there really aren’t many downsides to working with a third-party depository. On the other hand, a home storage gold IRA comes with more downsides than you might expect.
Becoming a trustee to open a home storage gold IRA
The IRS requires anyone wanting to have a home storage gold IRA to become a trustee. The requirements aren’t just stringent: they’ll automatically disqualify a lot of interested parties.
For example, every gold IRA company has a minimum investment requirement. Lower investment minimums are generally seen as a good thing. Many have a minimum of $10,000, which is considered low. Augusta Precious Metals comes with a $50,000 investment minimum, the highest you’ll see among gold IRA companies, more than likely. This figure already means that they won’t be a choice for quite a few retirement investors.
To become a trustee, you need to have an ongoing net worth of $250,000 or over. That means you need to constantly reassure the IRS that your net worth hasn’t dropped under this. Furthermore, it seems that you essentially need to open your own business. This is where some of the confusion kicks in. The trustee’s duties are awfully reminiscent of a custodian’s, yet the IRS doesn’t seem to specify that a custodian isn’t needed.
Either way, it’s not a first-day-in-the-office type of thing: your trustee business should already have some miles behind it. And as you manage your home storage gold IRA, you’re expected to work with both a lawyer and a public accountant in order to file annual reports and things of this nature.
So while a home storage gold IRA account sounds easy in theory, it turns out to be anything but. From what we understand from our research, home storage gold IRAs are advertised to those that are already a trustee for whatever reasons and have the means to facilitate the storage of the bullion in their retirement account. Most retirement investors don’t fall into this category and will undoubtedly find the road to becoming a trustee a needlessly difficult one.
Past just becoming a trustee, which appears to act as a custodian of sorts, there are other considerations to make when talking a home storage gold IRA.
Safes, vaults, security, insurance – you’re paying for all of these
If you’re going for a depository, whether for IRA bullion or otherwise, none of these are really a concern for you. These depositories place a lot on their name value, meaning that they have a reputation to uphold. This, in turn, means that they can’t afford to skip on any of the above. You’re getting the best vaults, the best security and the most all-inclusive insurance policy available. And, again, you aren’t paying individually for any of those things.
Even if you have what it takes for a home storage gold IRA in the form of being eligible to become a trustee, there’s still the issue of storing the bullion. Depending on the amount of physical gold and other precious metals, a house safe could do, but a vault might be needed. The larger the space, the more expensive it will be.
Even smaller vaults can be very expensive, and a small vault might not cut it for you. You might have allocated the bullion in your IRA to proof American Eagle coins, which are going to take up a lot more space than something like gold bars.
Vault security isn’t just steel doors and linings. Alarms, cameras, things of this nature: all of that is necessary to secure a larger stockpile of bullion. Even location is a consideration, as many bullion investors prefer to essentially hide their bullion away. This might not go so well with the need to file annual reports, possibly in the presence of a third party.
Once the bullion is in the vault, it needs to be insured. Good and all-inclusive insurance is obviously expensive. Why can large depositories offer insurance policies that go up to $1 billion? Because they specialize in bullion storage and handle bullion for what are likely thousands of clients.
For an individual, the cost will more than likely be too great. Even those who meet the different net worth criteria for a trustee put forth by the IRS, which can seem lofty, will find these expenses high. If you’re opening a vault for your home storage gold IRA bullion and looking to insure it, the costs will almost certainly climb to tens of thousands of dollars for a start.
Again, this really doesn’t hold up that well when compared to the traditional method, which is why both I and most gold companies advise that you work with a third-party depository rather than the minefield of trying to go it alone with home storage gold IRAs.
Home Storage Gold IRAs could cost you Money – Fines
During our research we also found that not only are home storage IRAs are not a safe way to invest for retirement. We actually found one court case which decreed that IRA owners invested in gold and silver coins can not self-store them at home.
The judge of the Tax Court case in question– Andrew McNulty et al. v. Commissioner – ruled that Donna and Andrew McNulty shall pay the IRS over $300,000 in taxes, fees, and penalties on an IRA balance of…… $730,000.
This was nearly half of the value of their IRA balance!
We recommend avoiding home storage gold IRAs entirely, and I am fairly sure you will come to the same conclusion when seeing how much of a minefiled the area is, with so many potential headaches a long the way…. it really just isnt worth it.
Especially are there are much safer and simpler ways to save physical precious metals in a Gold IRA retirement account by using a Gold IRA company and depository to take care of all the paperwork, legalities, storage and responsibility.
Why a depository is probably the best choice for everyone
“Everyone” feels like a bit of a generalization, but it seems that home storage gold IRAs are really only an option for a select group of retirement investors. Even this group can probably find reasons to opt for a depository instead.
Everyone else will simply find it not worth the hassle. Again, annual storage fees for a top depository are around $200, while custodians charge around $150. These fees are usually waived for one or more years by the company you’ve opened a gold IRA with.
However you slice it, what the depository offers is far better than what you will be able to facilitate. The only thing you’re left with in terms of perceived benefits is that you’re keeping your bullion closer. But how big of a benefit is that when taking into account the trouble you’re going through?
There really isn’t much else to round up the story of home storage gold IRAs with other than to say that they aren’t worth it. Remember: a single mistake can bring about IRA liquidation along with a penalty. These mistakes are made very easily when you dabble in things like self-storage or even self-custody. It’s best to avoid them altogether by using a provide, this of course comes with its own 3rd party risk and is why you should only use a repatriable and top tier company with a proven track record of service and happy customers,
The best option is to appoint a Gold IRA company to do all the heavy lifting for you.
Choosing a Gold IRA account provider
When it comes to the best Gold IRA companies, making an informed decision can be a daunting task. This section aims to provide comprehensive insights into the world of gold IRAs and top-rated providers in this space.
We’ll start by explaining what a Gold IRA is, followed by highlighting its numerous benefits. You will learn how these accounts offer a robust hedge against inflation and economic uncertainties.
The main section of our guide delves into how you can choose the best gold IRA company that aligns with your investment goals. We present detailed reviews on some of the most reputable Gold IRA companies like Augusta Precious Metals, Birch Gold Group, and American Hartford Gold among others.
In conclusion, we crown our top pick for the best gold IRA company based on various factors such as fees, customer service, storage options and more. Finally, we outline actionable next steps for prospective investors looking to venture into precious metals IRAs.
What’s a Gold IRA?
A Gold IRA is a retirement account that enables one to invest in physical precious metals, such as gold, silver, platinum and palladium. It’s like having a treasure chest for your retirement savings.
Types of Precious Metals in a Gold IRA
Gold: The classic choice for investors who want stability and value.
Silver: A more affordable option that still offers wealth preservation benefits.
Platinum: A rare metal that’s used in various industries and could potentially increase in demand and price.
Palladium: Another rare metal with unique properties that make it desirable for specific industrial applications.
A Gold IRA lets you diversify your retirement portfolio with something real and tangible. Do your homework or consult a financial expert before setting up a Gold IRA, as the IRS has established certain rules and requirements.
Benefits of Investing in a Gold IRA
Want to secure your retirement? Consider investing in a Gold IRA. Investing in a Gold IRA can provide potential for long-term growth, as well as serving to protect against inflation and economic uncertainty.
Tax Advantages
Gold IRAs offer tax advantages similar to traditional IRAs. Contributions may be deductible on your tax return depending on your income level and access to an employer-sponsored plan.
Hedge Against Inflation
Gold retains its value better than paper currency or other assets during economic uncertainty or high inflation. Including gold in your retirement account protects you from the eroding effects of inflation.
Diversification
Investing in a Gold IRA provides diversification. Gold often moves inversely to stocks and bonds, providing balance to your portfolio during market downturns. Diversification is key.
Potential for Long-Term Growth
Gold has been known to rise in value gradually, making it a great selection for those aiming at long-term gains.
How to Choose the Best Gold IRA Company
Although staying away from a Home storage Gold IRA is the best option. Choosing a Gold IRA company still an important decision, like choosing a life partner – it’s a big decision that requires careful consideration. Here are some factors to keep in mind:
Fees
Don’t get ripped off. Look for a company with transparent fees and no hidden costs. Be wary of ending up with a higher bill than expected.
Customer Service
Investing in gold can be confusing, so you want a company with excellent customer service. Ensure that you are able to obtain the answers to your queries in a timely and straightforward manner.
Reputation
Do your research. Look for a business with an excellent track record and positive customer feedback. Don’t risk entrusting your funds to a dubious organization.
Tips:
Check out sites like TrustPilot to see what real customers are saying about different companies.
Ask for referrals from friends or family members who have invested in gold.
Make sure the company is accredited by organizations like the Better Business Bureau (BBB).
Storage Options
Make sure your gold is safe and secure. Look for a company that offers segregated storage options. You don’t want your precious metals getting mixed up with someone else’s.
Augusta Precious Metals Review
If you want a Gold IRA company that’s easy to understand and prioritizes customer education, check out Augusta Precious Metals. With an A+ rating from the Better Business Bureau and a Triple-A score from the Business Consumer Alliance, Augusta Precious Metals has established itself as a reliable gold IRA company.
Augusta’s fee structure is transparent with no hidden costs. You’ll pay $50 for setup, $80 for annual administration, and $150 per year for storage. These rates are competitive and make Augusta one of the most affordable options in the market.
Fees: Setup ($50), Annual Administration ($80), Storage ($150)
Ratings: BBB (A+), BCA (AAA)
Augusta stands out for its personalized approach to customer service. You’ll work with a dedicated customer success agent who will guide you through every step of setting up your Gold IRA account. They also offer free educational webinars hosted by their economic analytics team to help you stay informed about market trends.
One of Augusta’s key features is its secure storage option. They’ve partnered with highly secured facilities across North America where your precious metals will be stored in segregated storage, ensuring safety and quick access when needed.
Augusta is an excellent choice for investors who value transparency and ongoing education as part of their investment strategy. Whether you’re new to gold IRAs or an experienced investor seeking a reliable provider with excellent customer service, Augusta Precious Metals could be the perfect fit for you.
Next Steps: What To Do Now?
Reach out to at least two or three companies on our recommended list, including Augusta Precious Metals. Obtain each company’s free guide so you can compare information side-by-side before making your final decision. Remember, these providers come highly recommended, but it’s crucial to carry out due diligence before committing any funds into gold IRAs.
Birch Gold Group Review
Birch Gold Group is a solid choice. For almost two decades, Birch Gold Group has been highly regarded for its customer satisfaction.
Competitive fees? Check. Setup fee is $90, annual maintenance fee ranges from $80 to $160 depending on your account balance, and there’s an annual storage fee of $100.
Impressive ratings? Check. A+ rating from the BBB, 4.8/5 stars on TrustLink based on over 1,000 reviews, and rated ‘Excellent’ by TrustPilot users.
Company: Birch Gold is transparent and education-focused, making them one of the most trusted names in the industry.
Fees: Competitive pricing structure makes them appealing for new investors or those looking to roll over existing retirement accounts into gold IRAs.
Ratings: Consistently high ratings reflect their dedication towards customer service excellence and trustworthiness as a financial partner.
Want personal attention? Birch Gold’s team provides personalized service that helps guide clients through each step involved in setting up their gold IRA – ensuring that every detail gets handled correctly without any unnecessary stress or confusion along the way.
Next Steps: What To Do Now?
We advise getting in touch with a minimum of two to three businesses from our endorsed list prior to deciding on the most suitable one for your needs. Obtain free guides provided by each company such as Birch’s Free Information Kit. Discussing details with their respective customer service representatives can also provide valuable insights into how well-suited they are for meeting specific requirements or preferences you may have regarding investments within gold IRAs sector.
Remember though – despite our recommendations here being among the highest-rated providers available today; conducting thorough due diligence remains crucial prior to committing any funds toward these types of investment vehicles.
Gold Alliance Review
If you’re after a Gold IRA company that offers comprehensive services, Gold Alliance might be your golden ticket. A+ Better Business Bureau rating and positive feedback from customers have made Gold Alliance a trusted name in the field.
Gold Alliance’s fees are transparent and competitive. They offer a flat annual fee of $180 for storage and insurance, which is waived for accounts over $50,000. This makes them a cost-effective choice among the available selections.
When it comes to customer service, they shine with their dedicated team of professionals who guide investors through every step of setting up their Gold IRA account. Their knowledgeable representatives can answer any questions you may have about investing in precious metals or managing your retirement portfolio.
Flexible Storage Options
A unique feature offered by Gold Alliance is its flexible storage options. Investors can choose to store their gold domestically or internationally without any additional cost. This gives investors greater control over where their assets are stored and potentially provides added security benefits depending on personal preferences.
Suitable for All Investors
This company caters to both novice and experienced investors alike, but it’s particularly suited for those seeking personalized service along with transparency in pricing structure. If you value clear communication and hands-on assistance throughout your investment journey, then Gold Alliance might just be what you’ve been searching for.
Note:
Remember to research and get customer feedback before investing; however, it’s essential to evaluate your financial objectives and risk tolerance levels as investments carry a potential of loss. Investing involves risks, including possible loss of principal amount invested, so ensure all decisions align with your financial goals and risk tolerance levels.
American Hartford Gold Review
American Hartford Gold is a standout choice for customer service and transparency. This family-owned business has been helping investors diversify with precious metals since 2015.
Competitive fees with no charge for the first year of storage and a flat annual rate thereafter. Their straightforward pricing structure can save you money over time.
Earned an A+ rating from the Better Business Bureau and boasts excellent reviews on TrustPilot. Segregated storage options ensure your gold is stored separately from others’, providing extra security for your investment.
Who Should Consider Investing With American Hartford Gold?
Looking for personalized service and guidance? Their advisors, having a wealth of knowledge, will work in tandem with you to understand your objectives and assist in selecting the correct balance of precious metals for your investment plan.
Beyond gold IRAs, they also provide silver IRAs and direct purchases of physical bullion coins or bars. Versatile enough to cater to different investor needs.
Potential Drawbacks
Limited online resources: Their website may lack educational content compared to other providers.
No electronic transfer option: All transactions must be conducted via phone call or mail.
Your Next Steps…
To determine if American Hartford Gold aligns with your investment strategy and retirement planning objectives, reach out directly to them. Request their free guide for detailed insights and interact one-on-one with knowledgeable representatives before committing any funds. Remember to carry out due diligence prior to finalizing investment decisions.
Goldco Review
Investing in gold? Look no further than Goldco. Their A+ rating from the BBB and glowing reviews on TrustLink prove they’re a top choice for protecting your retirement savings with precious metals.
Customer Service That Shines
Goldco’s team is knowledgeable, responsive, and dedicated to providing assistance throughout every step of your investment journey. You’ll feel like a VIP with their personalized guidance.
Clear Fees, No Surprises
Goldco’s transparent pricing model eliminates any hidden costs. You’ll pay a flat annual fee of $175 for accounts under $100k and $225 for those over this amount, including storage fees. Easy peasy.
Secure Storage for Peace of Mind
Goldco stores all IRAs at depositories approved by the IRS, like Delaware Depository or Brinks Global Services USA Inc. Your possessions will be safeguarded and secure.
What’s Next?
Before making your final decision, we recommend reaching out to at least 2-3 companies from our recommended list. Obtain free guides offered by these providers about investing in gold IRAs and discuss any queries with their representatives directly. Remember, due diligence is crucial before committing any funds towards investments.
Our Top Pick for Gold IRA Company
Investing in gold can be tricky, but Augusta Precious Metals makes it easy. With a stellar reputation, transparent fees, and a commitment to education, they’re the clear choice for anyone looking to secure their retirement.
Why Augusta Precious Metals Stands Out
Reputation: Augusta Precious Metals has earned hundreds of positive reviews from satisfied customers, making them a trusted name in the industry.
Fees: Their flat annual fee of $180 is competitive and transparent, so you won’t be hit with any unexpected costs.
Education: Augusta Precious Metals provides comprehensive educational resources for investors, including webinars, guides, and one-on-one consultations with their team of experts.
Who Should Invest with Augusta Precious Metals?
Investors who value transparency, excellent customer service, and quality precious metals products for their portfolio will benefit most from partnering with Augusta Precious Metals.
Next Steps: What to Do Now?
Now that you’re equipped with knowledge about Gold IRAs and some of the best companies in this field, it’s time for action. The next step is crucial and requires careful consideration.
We recommend reaching out to at least 2-3 companies from our recommended list, including Augusta Precious Metals, Birch Gold Group, Gold Alliance, American Hartford Gold, and Goldco. Each of these providers has been thoroughly vetted by us and comes highly recommended.
Contacting multiple providers allows you to compare their offerings directly. Check out their customer service, answer any doubts you have and get a sense of how they work.
All these companies offer free guides, which are a valuable resource for understanding more about gold investment options within an IRA. Make sure you obtain these guides from each company as part of your due diligence process.
Follow These Simple Steps:
Step 1: Contact at least 2-3 recommended companies.
Step 2: Obtain each company’s free guide.
Step 3: Discuss with their customer service representatives before making your final decision.
Please note that while we stand behind our recommendations, it’s important that all investors carry out thorough due diligence before committing to any provider or investment strategy. Remember, investing involves risk, including potential loss of principal, so always make informed decisions based on sound financial advice tailored specifically towards your individual circumstances.
Free Guides
To make the process as streamlined as possible we have collected the free guides below which will open a new window and enter your name, email and phone number to get the guides.. that is it, no complicated forms to fill in.
Conclusion
Choose the best Gold IRA company, like Augusta Precious Metals, Birch Gold Group, Gold Alliance, American Hartford Gold, or Goldco, to ensure your investment is managed by experienced professionals.
Thoroughly research each company before making a final decision on which one to choose.
