Posted on 08/25/2014 3:47:33 PM PDT by Mean Daddy
My old company wants to liquidate their pension system and is offering former employees a buyout of cash. I want to create a self directed IRA and take physical possession of the silver and gold bullion but needing help researching.
Some websites say having the coins in a bank deposit constitutes control of the assets, but I'm looking for help in determining what I can/cannot due.
Thank you.
Do some research on what happened to gold in safe deposit boxes during the Roosevelt administration.
Get some sound financial advice from professionals.
Sounds like you’re wanting a SHTF safety net which the goobermint don’t like. PHYS is a company that is backed by physical gold (Just like PSLV is the sister silver company). I’m not sure how much closer the government wants you to be to those taxable assets (with possible penalties for tapping prematurely). I’m sure the government wants you more than arms length from the gold.
“If my self directed IRA invests in gold, can I take physical possession of the gold?
An IRA LLC can purchase and take physical possession of all American Eagle coins. This means that the account owner can personally hold the American Eagles and store them however s/he wishes. With regard to other acceptable bullion coins and bars, the law mandates that the coins and bullion be in the “physical possession” of a bank or similar qualified institution. Some legal experts are of the opinion that storing the precious metal at a bank in a safe deposit box (in the name of the IRA LLC) satisfies this requirement. Learn more about holding gold.”
http://www.broadfinancial.com/self-directed-ira/gold-ira
Take the cash, buy your gold and silver with no paper trail and store yourself. It is not hard to do, or so I have heard. Lead and brass are also recession proof.
If he takes the cash he will have to pay regular income tax plus a 10% penalty for early withdrawal.
Buy gold - bury it - keep yo mouth shut - buy silver - bury it keep yo mouth shut......repeat monthly.
Anything in an IRA or self-directed 401K is reportable to the IRS, especially so if you claim the tax benefits of 401K deductions.
If you want gold/silver as a hedge against a bankrupt, rapacious government, then buy physical and hold it yourself, secure where only you and your loved-ones know where it is.
I agree. But in this case the money is already in a retirement account, so it's already been reported. If he takes it out in cash the government will take about half now. If he rolls it over he won't have to pay until he starts taking it out at retirement age, and he won't have the extra 10% penalty.
Just remember,you can't take them with you;)
I think this article answers all your questions -
http://money.msn.com/mutual-fund/gold-bullion-for-your-ira-smartmoney
I’ll hold your bullion for you. No storage fee.
I’ve been thinking about this same thing and I think I have another way to skin this cat. If two self directed IRA holders make loans to one another for the same amount and for the same duration, what the borrower does with that money doesn’t matter. So I loan you $50,000, you loan me $50,000. At the end of the 10 year note you default and I default but we’ve each been able to buy ANY type of physical gold or silver and take possession of it. Plus we’ll each show $50,000 less money at retirement, so less for Uncle Sam when he takes his cut.
I think that’s called fraud...
I know. I think he would be better off with his purchasing power outside the government’s grasp. I would take the hit and hide it. I also do not believe in homeownership any longer, you have too much to lose tied up in one immobile asset, the upkeep is horrific, and the locals and state can raise your property tax, for the children, whenever they feel like it. Used to be the road to wealth but now it is a millstone around many people’s necks. Course what do I know, I aint an expert.
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