Can I store Gold IRA at home?

No, you cannot legally store Gold IRA assets at home. IRS regulations (specifically Section 408(m)) require that all precious metals held within an Individual Retirement Account (IRA) must be stored by an IRS-approved third-party trustee or custodian in a secure, regulated depository. Personal possession, even through an LLC, is prohibited.

Is a home storage Gold IRA legal?

No, a home storage Gold IRA is not legal. The IRS has consistently ruled against arrangements where IRA owners take physical possession of their retirement account's precious metals. The landmark Tax Court case McNulty v. Commissioner (2021) confirmed that such setups lead to IRA disqualification and severe tax penalties.

What is the penalty for home storage Gold IRA?

The penalty for a home storage Gold IRA is severe. The entire IRA is disqualified, meaning its full value is treated as a taxable distribution in the year the prohibited transaction occurred. This results in income tax on the entire amount and, if you are under 59½, an additional 10% early withdrawal penalty.

What is a checkbook IRA?

A "checkbook IRA" is a type of self-directed IRA that invests in a Limited Liability Company (LLC), giving the IRA owner (as the LLC manager) direct control over the LLC's funds through a checking account. While a legitimate checkbook IRA can be used for certain alternative investments, it is illegal when used to facilitate the home storage of IRA-owned precious metals.

How do I know if my Gold IRA is compliant?

Your Gold IRA is compliant if your precious metals are held by an IRS-approved custodian (like Equity Trust or Kingdom Trust) and stored in an IRS-approved depository (like Delaware Depository or Brink's). You should never have physical possession of the metals yourself. Your custodian will provide regular statements confirming the metals' location.

What are the risks of a non-compliant Gold IRA?

The risks of a non-compliant Gold IRA include complete IRA disqualification, substantial income tax liabilities on the entire account balance, a 10% early withdrawal penalty if under age 59½, and the loss of all tax-deferred growth benefits. It can lead to a significant depletion of your retirement savings.

Can I roll over my 401(k) into a Gold IRA with home storage?

No, you cannot roll over a 401(k) or any other retirement account into a Gold IRA that allows for home storage. Any rollover into a non-compliant Gold IRA arrangement would immediately trigger the same severe penalties, including full taxation and early withdrawal penalties. All rollovers must go into a legitimate, IRS-compliant Gold IRA with third-party custody.

Home Storage Gold IRA Illegal? IRS Penalties Explained |…