Posted on 12/03/2021 7:20:05 AM PST by DUMBGRUNT
According to the decision, the couple in 2015 began moving nearly $750,000 of existing retirement-plan funds, including from a MetLife annuity and 401(k), into self-directed IRAs. Then they had the IRAs purchase shares in limited-liability companies that in turn invested about $730,000 in a condominium plus gold and silver American Eagle coins.
...That left two issues for Tax Court Judge Joseph Robert Goeke to decide: whether Donna McNulty’s storage of about $411,000 of gold and silver American Eagle coins in a safe at her home was permitted under the law, and whether the couple owed stiff penalties for understating their tax. The couple lost on both issues.
According to the decision, Mrs. McNulty, a registered nurse, was careful with her IRA’s coins in some ways. She opened a bank account in the name of the LLC, documented the purchase of the coins, and labeled the coins as belonging to her IRA-owned LLC when she put them in the couple’s safe.
However, the judge ruled that her “unfettered control” of the coins, if upheld, would be ripe for abuse. He clarified what some saw as a gray area and said the law requires independent oversight of investments in coins or bullion by a third-party fiduciary—so it doesn’t allow for storage in a safe at home. Because that wasn’t allowed, Mrs. McNulty had a taxable payout from her IRA payout of the coins’ $411,000 value.
(Excerpt) Read more at wsj.com ...
"If you believe that's gonna be their charter, you definitely weren't watching Louise Lerner in action when the Obama administration had her at the IRS.
Even if they weren't politicized, the tax code is so complicated that it's frequently difficult for tax experts to reach a consistent consensus. 80K of these guys would just bleed the taxpayers dry on honest mistakes, if they were even mistakes at all."
Full TXT:
https://archive.vn/7YCGD
I’m not aware of a legal basis for the judge to day this.
F**k this. Can they appeal this Nazi ruling? FDRs ban on gold ownership was almost 100 years ago. There’s no law against this. Psychotic tyrant!
Spot price = $300,000/$1,780.50 = 168.491 troy ounces
They sell gold all day. I never heard of any limit on how much one can buy. WTH is the judge thinking here?
They had possession of their IRA assets which makes it a taxable withdrawal.
This.
It's not that they had the gold, it's that they used 401k money to buy and take physical delivery of the gold, which this judge ruled as a withdrawal from the 401K.
So they're liable for taxes and penalties in the withdraw. 401K withdrawals are treated as ordinary income and taxed at the taxpayer's current income tax bracket rate, IIRC. In any case, $411,000 of income will put you at the top rage.
The only bright side is hopefully the gold went up enough in value to cover some of the taxes.
IRA GOLD?
From Leprechauns?.....................
The Irish Republican Army will NOT BE PLEASED!...........
Leprechauns with a deep disdain for the British crown.
But it wasn't abused, so what's the problem? The IRS hates it when you actually follow THEIR RULES................
“ They had possession of their IRA assets which makes it a taxable withdrawal.”
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Yep. I feel sorry for them but they did violate the clearly spelled out rules. It looks like they thought they could “finesse” it to avoid a violation but they should have simply listened to the cautions about how to LEGALLY include things such as gold and Bitcoin in your retirement accounts.
They all do..........................
From Boston. Collected by IRA zealot and Mayor, Flynn
> They had possession of their IRA assets which makes it a taxable withdrawal. <
I think that’s the key point here. It doesn’t matter if it was gold or potatoes. In a situation like this, a person could sell off his IRA assets secretly and so avoid paying any penalties or taxes.
Having said that, it seems like the couple here had no ill intent. So if they sold nothing off, give ‘em a slap on the wrist and then order them to set things up according to the law.
That’s what I love about Leprechauns.
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I think had they put the coins in a bank’s safe deposit box they might have skated................
It’s not that they bought gold. It’s what they bought it WITH.
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