We don’t often share articles to our mailing list clients, but we came across one that we thought was critical for our clients to know. Especially for any of our clients who have chosen to have a precious metals IRA and take possession of their metals as part of a self managed LLC arrangement. The article has a link to a recent white paper issues by ICTA (the Industry Council for Tangible Assets) regarding recent guidance issued by the IRS in regards to “home storage”.
The gist of ICTA’s white paper is what we have been telling clients all along. Having the metals in your IRA in your own possession is likely to be deemed by the IRS as a distribution and subject to taxes and penalties. Also, it may be viewed as “self-dealing” which could result in all assets in your IRA to be viewed as a prohibited transaction and cause them to treat all of the assets in your IRA as being distributed.
We highly recommend that you click on the link and have the ICTA white paper sent to your email. It is free of charge and we would have sent it out ourselves, but we are not allowed to reproduce the white paper. You could also skip the article and go straight to ICTA’s website using the link below.