New “self-storage” self-directed IRA LLC will allow for the purchase and holding of IRS approved coins at home or outside the United States
IRA Financial Group, the leading provider of “checkbook control” Self-Directed IRA LLC solutions announces the new introduction of the “self-storage” self-directed IRA for IRS approved coins. “IRA Financial Group’s newly designed “self-storage” self-directed IRA LLC solution will allow retirement investors the ability to hold IRS approved coins at their home or outside the United States,” stated Adam Bergman, an in-house tax attorney with the IRA Financial Group.
The IRS does not list the type of assets or investments that may be purchased with retirement funds, but does indicate which categories of assets or investments are not permitted.
The categories of transactions that are not permitted to be purchased using a Self-Directed IRA LLC can be found in Internal Revenue Code Sections 408 & 4975.
When it comes to coins or metals, Internal revenue Code Section 408 is generally the provision that applies. In general, collectibles such as artworks, rugs, stamps, certain coins, beverages and antiques, etc. are not allowed within a Self-Directed IRA LLC, pursuant to Internal Revenue Code Section 408.
Internal Revenue Code Section 408 is specific as to what defines a collectible. Some notable exceptions are allowed for certain gold (such as American Eagle) and silver coins and any coins issued by a state. Legislation in 1997 further liberalized the rules for IRAs by making reference to specific definitions of acceptable coins in USCS, title 31; IRC Sections 5112(a), (e) and (k); the Commodity Exchange Act; and IRC Section 408(m)(3).
According to Mr. Bergman, “unlike precious metals, the Internal revenue Code and the legislative history does not include a requirement that IRS approved coins be held in the physical possession of a U.S. trustee.” “If so, the requirement would have been so stated in the tax code, “ Mr. Bergman states. Accordingly, according to Mr. Bergman, many tax practitioners take the position that IRS approved coins can be purchased by a Self-Directed IRA LLC and not be held at a depository or U.S. Bank.”
With IRA Financial Group “self-storage” self-directed IRA, American Eagle coins can be held personally by the IRA holder and even outside the United States. However, the IRA Financial Group recommends that retirement investors hold IRS approved coins at a bank safe deposit box, depository, or some sort of third-party vault in the name of the IRA LLC. “Irrespective of the fact that it appears that IRS approved coins are not required to be held in the “physical possession of a U.S. trustee”, holding the coins in the physical possession of a disqualified person puts the onus on the IRS holder, as the disqualified person, to prove that no self-dealing or conflict of interest event occurred in the case of an IRS inquiry, “ stated Mr. Bergman.
The IRA Financial Group was founded by a group of top law firm tax and ERISA lawyers who have worked at some of the largest law firms in the United States, such as White & Case LLP, Dewey & LeBoeuf LLP, and Thelen LLP.
IRA Financial Group is the market’s leading “checkbook control Self Directed IRA and Solo 401(k) Plan provider. IRA Financial Group has helped thousands of clients take back control over their retirement funds while gaining the ability to invest in almost any type of investment, including real estate without custodian consent.