One of the things people love about gold IRAs is the availability to hold precious metals at home. Depositories are always the better option for storing gold, and keeping them at your house through home storage can cause you problems in the long run.
Here’s what you should know about home storage gold IRA.
At a Glance Rating:
1. Goldco: Editor’s Choice – Best and Most Trusted Gold IRA Company Overall (4.9/5)
2. American Hartford Gold: Runner up – Best Price for Bullion (4.8/5)
3. Augusta Precious Metals: Great Buyback Program (4.6/5)
4. Birch Gold Corporation: Great Staff Overall (4.5/5)
5. Red Rock Secured: Best at Home Gold IRA (4.2/5)
Best Gold IRA Companies
Goldco: Editor’s Choice – Best and Most Trusted Gold IRA Company Overall (4.9/5)
Goldco has been a reliable IRA company in the industry for years. They genuinely value your wealth stability and aim to provide their clients with the best financial status protection.
Especially in these changing times, it is essential to have an IRA company you can trust and cares for the life you’ve built for yourself and your family.
These are only some things that set Goldco apart from other companies. They also offer exceptional programs that benefit their customers, such as their buyback guarantee policy that helps clients who want to liquidate their assets.
- Excellent rating from verified clients
- All bars and coins are certified
- Consumer Affairs Accredited
- Provides updated news
- No information on custodian fees
- Steep minimum investment
American Hartford Gold: Runner up – Best Price for Bullion (4.8/5)
American Hartford Gold is a family-run company that provides each client with a reliable gold IRA account. They have years of experience and have helped many customers diversify their retirement portfolios for better wealth security.
It is so much easier to set up an account with them. A representative will help you with the processes while educating you on how it works. They also partner with Brinks Global Services and Delaware Depository for safeguarding your physical assets.
- Provides specialists and educational resources
- Customer service is a top priority
- Complete cost disclosure
- Excellent customer ratings
- The price list is not available on the website
- International shipment is not available
Augusta Precious Metals: Great Buyback Program (4.6/5)
Augusta Precious Metals is among the best companies you can set up your home storage gold IRA from. They have thousands of clients across the country who trust their products and services.
People also praise their wide selection of bullions you can choose from to include in your retirement account. Aside from IRAs, you can also purchase gold and other kinds of precious metals from them as personal properties.
However, the minimum investment cost for IRAs is $50,000. Some people may find this quite expensive as beginners in the industry.
- Involved education in the process
- Simple and easy
- Focuses on the client’s needs
- Great reviews from different platforms
- High minimum cost on IRA purchases
- The fee structure is challenging to find
Birch Gold Corporation: Great Staff Overall (4.5/5)
If you want more security with your money, you would like to consider partnering and opening an IRA account with Birch Gold Group. The company has a wide range of bullions you can invest in your retirement account, including palladium and platinum. You may also choose to invest in gold and silver coins, along with a self directed IRA.
Even if you are a beginner in precious metals investment, you will feel safe with them because they provide educational materials that can help you in every way. A representative will also break down the processes and answer everything you need about the investment.
- Wide range of products available
- Transparent fee structure
- Low minimum purchase cost
- Provides updates and news to clients
- Difficult to contact
- The website can be confusing to navigate
Red Rock Secured: Best at Home Gold IRA (4.2/5)
At Red Rock Secured, they are committed to giving their clients the best possible experience when investing in precious metals. They achieve this by providing personalized service and support through a dedicated team of professionals. Their team members work closely with each client to understand their unique investment goals and tailor our services to meet their needs.
They take the time to educate their clients on the precious metals market and offer guidance throughout the entire investment process, from selecting the right products to managing their portfolio. The goal is to build long-lasting relationships with our clients based on trust, integrity, and a shared commitment to achieving financial security.
- Tailored investment strategies: With a dedicated team, Red Rock Secured can create personalized investment strategies to fit individual needs, goals, and risk tolerance.
- Education: The dedicated team offers education and support on precious metals, allowing the clients to make informed investment decisions.
- Ongoing support: Investing in precious metals is not a one-off transaction. The dedicated team at Red Rock Secured provides ongoing support to clients, helping them manage their portfolios and make adjustments when necessary.
- Trust: The personalized service and support offered by Red Rock Secured’s dedicated team help foster trust between clients and the company as it delivers a personalized experience with the benefit of long-lasting relationships.
- Cost: Tailored service comes with higher costs, which can deter some people from using this service.
- Limited to precious metals: The Red Rock Secured team only specializes in precious metals, which may not be suitable for investors looking to diversify into other asset classes.
- Personal preference: Some investors may prefer to manage their portfolios without the assistance of a dedicated team, making it more difficult to cater to a broader range of potential clients.
Things You Must Know About Home Storage Gold IRAs
Gold IRAs provide more than just flexibility among their clients. Through the years, it has evolved into a more personalized retirement account where owners have complete control over what they want to do with their assets. The concept of a Home Storage Gold IRA is one of many things people can do with their precious metals that you cannot access from any other IRAs.
This new construction has not been fully approved due to its possible risks and legal consequences, but many people continue to entertain this concept and see it for themselves. The growth of Gold IRAs is closely related to inflation and crises the world is currently facing.
Many investors believe Home Delivery is the safest option to protect themselves from such situations. Keeping your gold at home sounds like a good idea, especially if you want to ensure it is within your protection. This is made possible by the simplicity of a home storage gold IRA, which is also a factor in its rapid surge among people planning their retirement finances.
When you purchase a Gold IRA, you are usually presented with two options for storing your physical assets. It could be in depositories, local banks, or a self-store in your home.
People who do not fully trust their custodians’ intentions with their assets and the additional fees that come with storing in depositories have made them choose to store gold at home. Aside from being free, you can directly keep an eye on your assets, securing your financial stability.
Before making any final decisions about whether or not you would like a home storage gold IRA, you must understand the risks and drawbacks that come with it.
The IRs previously banned the use of a home Storage Gold IRA, so continuing with them may get you subject to penalties.
IRS Problems With Home Storage IRA
There are only two legal ways in which you are allowed to utilize home storage IRAs:
- Take distributions from your IRA purchased gold and have the physical assets delivered to your address. Remember that doing this under 59 and a half will be subject to penalties.
- You are purchasing gold outside of any retirement accounts. You can buy them and keep them in your home storage.
The IRS strictly prohibits home Storage Gold IRA, and those who do are required to pay penalties. This is because they do not consider gold assets permissible IRA investments.
So, the main concern is why people still do this even if the IRS does not permit it. The quick answer to that is the continued spread of misinformation on the internet.
Some intentionally mislead interested investors or repeat wrong information from various websites. This works because some people want to keep their physical investments nearby instead of viewing numbers on a screen that can change anytime.
Gold has been a great hedge against stock value fluctuations and inflation. Many people are now preparing for the worst by investing their money in Gold IRAs if the dollar fails.
What is A Gold IRA?
Gold IRA is one of the available retirement accounts that can hold precious metals. They can be in the form of bars and coin bullions. These precious metals are designed explicitly for this investment, where you can save money without initially paying taxes until your withdrawals.
You can hold it separately from other IRAs, but they also have contribution limits and distribution.
The primary purpose of Gold IRAs is to provide wealth protection to investors’ assets over long-term holdings without having to worry about market fluctuations. It also protects thieves and hackers that can get a hold of your stock market investments.
Gold IRAs are self-directed, so it is not tied to other investments that are more prone to downturns. It also helps diversify your assets for more secure finances during your retirement. Make sure to get in touch with a reputable gold IRA company if you’re going to opt for this.
After understanding the provided regulations of the IRS regarding Home Storage Gold IRAs, here are the penalties that you can face if you try to store Gold IRA at home:
The IRS does not allow home storage for Gold IRAs, so this may be a distribution from your retirement investment account. However, this comes with a penalty of 10% on the number of assets you hold.
You will also lose the tax advantage of an IRA, so you will need to pay income taxes on all of your distributions. Keep in mind the size of the investment can affect this. The tax can add up to a large amount of your hold in large amounts.
Aside from the distribution penalties, the IRS can also decide to audit your retirement account if they know you are holding a gold IRA outside of any approved financial institutions. If you are proven to break their rules, you will be faced with penalties and fines in addition to those you were initially required to pay.
You should know that the penalties they can subject to you if you break IRS rules can reach high amounts. In some cases, it can even be up to 100% of the initial value of your investment.
If you own $100,000 worth of physical assets in your IRA, they will come after your account even if you store them securely in a vault that is not an approved financial institution.
When you are investing in physical assets through an IRA, there are security concerns that you should know as well as a list of problems that you might encounter.
In 2009, the IRS released a warning regarding owning physical gold on how “inherently risky” to store large amounts of precious metals in your home or any location where the IRS has no way of keeping track of them.
There are no regulations that surround your home, unlike in financial facilities. Some investors have even claimed to have suffered huge losses upon storing their gold IRA assets in non-professional vaults. Unfortunately, they found out the consequences the hard way: they could lose everything if they could not keep track of the account.
Potential Legal Issues
Putting your physical gold assets in home storage can put them in jeopardy. It will be your fault if something goes wrong with them because no agency oversees them. A legal institution will not insure it; you cannot come for your custodians because you are holding it.
Unfortunately, some companies are dishonest and intentionally pressure you into buying unsupervised assets. They may sell them at such inflated prices that you wouldn’t be able to get them back. These are only some of the problems you may encounter in such situations.
Why Self-Directed IRAs Managed by Qualified Custodians is the Better Option
It is easy to understand why some investors become excited when buying gold through investment retirement accounts, especially for beginners in the industry. However, remember that owning precious metals in IRAs may require more trouble and effort than worth.
People interested in investing in gold should consider self-directed IRAs because it will allow them to hold all kinds of assets simultaneously without being at risk of dealing with issues related to diversification, security, and getting penalized.
Self-directed IRAs are more flexible because investors can choose how they want to invest their hard-earned money. Be it for other assets or different types of metals.
The IRS does not penalize diversifying your IRA assets, so they are much easier to manage than home storage gold IRAs. Your assets will also be more secure because licensed custodians will handle them.
Is A Gold IRA Right For You?
The rules for Gold IRAs provided by the IRS can be pretty complicated when unfamiliar. That is why you must consider carefully if this type of retirement account will be the best for you.
It is necessary to take the time to research and study the areas you will encounter upon choosing to invest in it. It would also help to talk with an expert about your available options, costs, and how much it can benefit you during retirement.
Once you are done with those factors, you can start processing the IRA, including where you will store it and not on home storage.
A Growing Trend
As precious metals IRAs become popular with many interested investors, it is challenging to keep all of them from opting to home storage gold IRAs. People like owning physical metals to protect their wealth, and they have different ways to keep them safe.
Most people are also unaware of the pitfalls of home storage gold IRAs unless a reliable custodian discusses it with them. Unfortunately, not all of them will conduct the proper research before diving into the precious metals investment industry.
As for you, do your duty as an investor to look through all options and risks before diving feet-first. If you don’t, you might place yourself in a situation where you cannot escape. Investments are always subject to legal issues to protect assets and prevent fraudulent activities.
Gold has been, and will always be, a valuable commodity, even if currencies lose value. This alone makes it an appealing asset to invest in when saving wealth in the long term.
Special Costs and Risks
You can expect special costs and risks when buying precious metals like gold through a retirement account.
The most important thing you must know is the age limit by which you can withdraw from the account without penalty. Doing it sooner than 59 and a half years will require you to pay a fee of 10%. Keeping your gold at home will also be considered an early distribution, and the penalty can reach up to 100% of your stored gold value.
Another concern is the unfortunate events that may happen to the assets stored at home. They will not be insured, unlike when they are stored in depositories.
If you lose them, you must replace them and shoulder the expenses. It is even more complicated if someone steals the assets from your property regarding tax laws because it will be considered personal property rather than an investment.
IRS regulations have also made it more difficult for investors to purchase gold through their IRAs. Home storage has been entirely prohibited, so it is crucial for investors to fully understand how Gold IRAs work and the regulations set for them before making any final decisions.
Frequently Asked Questions
What is a Gold IRA?
Also known as precious metals IRA, this retirement account allows you to own physical bullion assets instead of stocks, bonds, and ETFs.
Other than gold, you can also hold other approved metals like silver, palladium, and platinum. They can contain gold stocks, mutual funds, and any paper assets related to gold.
Benefits Of Gold IRAs
The benefit of having a Gold IRA is giving investors a way to diversify their retirement plans more securely. Physical gold remains at its value despite economic downturns and sudden market volatility. This can also save your wealth from inflation.
Risks Associated with Owning Physical Gold
The risk you need to keep track of when owning physical gold is its storage difficulty depending on the IRA company you chose to set up your account with. Some companies do not genuinely care for your assets, so it is essential to choose one who is trustworthy and reliable.
Penalties Associated with Early Withdrawals from a Gold IRA
You will be penalized if you make early withdrawals from your retirement account. This applies to all kinds of IRAs, including Roth and traditional accounts.
Can I Hold Other Precious Metals in my Gold IRA Besides Gold?
Yes. Gold IRA is only the most general term for precious metals IRA, but they are the same. You can incorporate palladium, silver, and platinum into your gold IRA.
You can ask your financial advisor or custodian what you can do if you plan to diversify your portfolio.
Final Thoughts – Home Storage Gold IRA
The benefits of Gold IRAs outweigh the risks it comes with them as long as you adhere to the regulations set by the IRS. These kinds of investments require proper proceedings as they may be prone to fraudulent activities and subject you to penalties with large amounts of money.
Do not try home storage Gold IRAs, no matter how tempting they may seem. If some organizations are pressuring you to do so, it would be best to report them to the IRS rather than including yourself in such a troublesome situation.
All the companies discussed above are great when setting up Gold IRAs, but the most prominent one is Augusta Precious Metals. They have the best reputation and connections in the industry. Even though their minimum investment cost for IRAs is pretty high, you can rest assured that all your assets will be safe and in good hands.