Self-directed IRA

The Internal Revenue Service (IRS) regulations require that a qualified trustee, or custodian hold the IRA assets on behalf of the IRA owner.
The trustee/custodian provides:
– custody of the assets
– processes all transactions
– maintains other records pertaining to them
– files required IRS reports
– provides reports to the client
– educates the client on the rules and regulations regarding prohibited   transactions

Most trustees will arrange for the physical storage  of coins and bullion with the Delaware Depository Service Co. in Wilmington, Delaware.

Fees charged by trustees include:

  1. One-time IRA setup fee

  2. Annual management fee for processing statements and handling other paper work

  3. An annual fee for storing and insuring the coins or bullion

  4. Additional fees for other services such as account contributions and distributions.

Investment in Collectibles: If your traditional IRA invests in collectibles, the amount invested is considered distributed to you in the year invested. You may have to pay the 10% additional tax on early distributions discussed in Publication 590-B (page 34). Any amounts that were considered to be distributed when the investment in the collectible was made, and which were included in your income at that time, are not included in your income when the collectible is actually distributed from your IRA.

Collectibles. These include:

1.    Artworks

2.    Rugs

3.    Antiques

4.    Metals

5.    Gems

6.  Stamps

7.  Coins

Alcoholic beverages, and Certain other tangible personal property.

Exception. Your IRA can invest in one, one-half, one-quarter, or one-tenth ounce U.S. gold coins, or one-ounce silver coins minted by the Treasury Department. It can also invest in certain platinum coins  and certain gold, silver, palladium, and platinum bullion.

The following gold coins and bullion are permitted in an IRA:

  1. American Gold Eagle coins

  2. Canadian Gold Maple Leaf coins

  3. American Silver Eagle coins

  4. American Platinum Eagle coins

  5. Gold and Silver bars (bullion) that are 99.9% pure or better