{"id":834,"date":"2022-05-17T02:12:31","date_gmt":"2022-05-17T02:12:31","guid":{"rendered":"https:\/\/dunnedinventures.com\/gold-investing\/clone-of-gold-ira-tax-rules-2022-know-these-before-investing\/"},"modified":"2022-05-20T19:38:23","modified_gmt":"2022-05-20T19:38:23","slug":"can-you-store-your-gold-ira-at-home","status":"publish","type":"page","link":"https:\/\/dunnedinventures.com\/gold-investing\/can-you-store-your-gold-ira-at-home\/","title":{"rendered":"Can You Store Your Gold IRA At Home? (Don’t Make This Mistake)"},"content":{"rendered":"

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Like most people, you’ve come across ads telling you to invest in gold and then store your gold IRA at home. The question is whether this is a legitimate option or if it\u2019s something you should avoid.<\/p>\n

The answer to this question is quite simple. You should never store your gold IRA at your home. It can lead to a great deal of trouble and tax implications. <\/strong><\/p>\n

Though investing in gold for retirement is entirely legitimate, there are specific ways that the IRS requires you to store it. But what happens if you don’t follow those rules?<\/p>\n

Can I Store My Gold IRA At Home? <\/strong><\/h2>\n

Regardless of what the ads might say, the IRS has very clear rules about all types of IRAs, including gold IRAs. These rules expressly state that “the law does not permit IRA funds to be invested in life insurance or collectibles.<\/a>\u201d This includes metals.<\/p>\n

Fortunately, they do make an exception for “highly refined bullion.” If it fits that category, it’s acceptable to hold gold and other bullion in an IRA. However, the IRS is very clear that it must be \u201cin the physical possession of a bank or an IRS-approved nonbank trustee.\u201d<\/p>\n

Though this is a clear rule, it’s the exception that allows you to invest your IRA in gold that the advertisements play on. They say that the IRS has made an exception that allows you to store it at home, but that is not the case.<\/p>\n

What Happens If I Get Caught Storing My Gold IRA At Home? <\/strong><\/h2>\n

If your gold IRA does not fit the “highly refined bullion” category and is not held by a bank or IRS-approved nonbank trustee, it falls into the category of “collectibles.” It is considered taxable for the year that you invested it in the gold when this occurs.<\/p>\n

Think about it like any other IRA. Your money is not taxed when it\u2019s in the actual investment. However, as soon as you cash it out, it becomes taxable.<\/p>\n

For your gold investment to be considered an IRA, it has to be held properly. If it’s not, it doesn’t fit the category of an IRA, and your money is considered distributed. Therefore, you\u2019ll be paying taxes for that year.<\/strong><\/p>\n

You also have to consider what happens when you take money out of an IRA early. You face a penalty of 10% additional tax. The same occurs with your gold investment when it is not held correctly.<\/p>\n

In short, if you are caught keeping your gold IRA in your home, you\u2019ll be paying taxes and a penalty <\/a>of at least 10%. And those taxes will be charged for each year you\u2019ve kept your gold at home.<\/p>\n

Therefore, if you\u2019ve had it sitting in your safe for five years, you can face taxes for that entire period. You wouldn’t be the only one if you bought into the “keep your gold IRA at home” scam. Check out the story below to learn about someone else who did.<\/p>\n

Have A Reputable Company Store YOur Gold<\/span><\/p>\n

Couple Stored Their Gold IRA At Home & Owe the IRS Big <\/strong><\/h2>\n

\"Can<\/span><\/p>\n

Andrew and Donna McNulty saw internet ads about investing in gold and silver, then storing it at home. They decided it was a wise move. In 2015, they started the process of transferring almost $750,000 of money from other investment types to invest in gold, silver, and a condo.<\/p>\n

The McNulty’s thought they had gone about everything right. They organized a self-directed IRA, purchased shares of an LLC, got a bank account in the LLC\u2019s name, purchased the assets, documented them, and labeled them as belonging to the IRA. They then put them in a safe at home.<\/p>\n

An audit uncovered these actions and led the McNultys to court. The judge ruled against them, and now they have to pay almost $270,000 of taxes and penalties of over $50,000. <\/strong>Altogether, this adds up to more than one-third of the value of their investments.<\/p>\n

Where did the McNultys go wrong? There are a few areas that led to this ruling.<\/p>\n