Posted on 12/03/2021 7:20:05 AM PST by DUMBGRUNT
I believe that this ruling will be applied to people storing Bitcoin off the grid in private wallets.
I considered purchasing gold for my IRA but decided against it after reading the regulations regarding storage of it. I don’t like the rules but it is clear that keeping your “IRA gold or other precious metals” in your own home is not permitted. Please correct me if I am wrong.
The story is a little confusing. They are not in trouble for holding gold in their safe. They are in trouble for using the LLC to “hold” their cold for an IRA. Which, evidently, is against the rules.
So...the government isn’t after seizing your gold. It is trying to “protect” the public from insecure handling of “retirement funds.”
Its OK to disagree with the ruling...but I think the ruling isn’t really what this article indicates it is.
I ran into this. You can put your IRA into physical gold, but it needs to be held in an IRA trust, and you can not be the grantor, trustee AND beneficiary of the trust. Plus, you can not physically touch the gold, it need to be held in a separate place, controlled by the trust.
The “You Can Own Gold in Your IRA” hucksters don’t really explain that. They just take your “fiat money” and give you gold, and you’re on your own to figure out the legal way to do it.
(Hey, wait a minute - why do they want my money, if it’s no good? And why are they giving me gold if it’s so valuable? Is it just because they are nice guys who want to help me?)
Many corporations only offer matching-contribution 401Ks as retirement plans.
Can you convert a corporate retirement 401k to a Roth IRA? The corporation certainly isn't going to contribute to the Roth for you.
Exactly right. It's amazing, based on the knee-jerk comments here, how many people are clueless with respect to that fact.
I suspect you are correct and I will be watching this case.
We don’t know some important details, but she seems to have worked to do everything correctly… so I’m assuming she followed the existing rules.
We’ll see
I suspect you are correct and I will be watching this case.
We don’t know some important details, but she seems to have worked to do everything correctly… so I’m assuming she followed the existing rules.
We’ll see
It had nothing to do with rules for owning gold. It had to do with rules for withdrawing and rolling over funds from an IRA.
>>But what if you didn’t even know you did a crime?
If that happens, when you learn you DID “the crime” you correct it immediately and work to settle it with the IRS. Intent matters...and if you turn and pay the taxes you will go a long way to staying out of court and out of jail.
Fighting a losing battle with the IRS is expensive.
The cost of fighting something you know you did is silly.
Igorance of the law...is not defense.
Depends on hwat the company offers, but my company allows me to decide if I contribute to Roth or Tradition. Now, matching funds from the company, which are untaxed at timer of deposit, must be traditional and you are responsible for taxes on withdrawal. At 59 1/2 years of age you can rollover those tradition contributions to Roth, paying the tax for it at time of conversion (a time of your choosing convenient to your tax and retirement planning to minimize your taxable income). Once rolled over, contributions and gains are tax free when you withdraw.
Ok. So each of us can create an LLC, manage it, and buy precious metals to hold in the LLC without being taxed, for ultimate distribution to the creator who then has a tax liability.
Or perhaps the couple could create some paper “Gold Certificates” and transfer the certificates to a fiduciary, while keeping the actual gold in their safe. Seems like there’s a precedent for that.
Depends on what the company offers, but my company allows me to decide if I contribute to Roth or Traditional. Now, matching funds from the company, which are untaxed at time of deposit, must be traditional and you are responsible for taxes on withdrawal. At 59 1/2 years of age you can rollover those traditional contributions to Roth, paying the tax for it at time of conversion (at a time of your choosing convenient to your tax and retirement planning to minimize your taxable income). Once rolled over, contributions and gains are tax free when you withdraw.
Here is a more extensive article that details this case and the legal reasoning.
There’s a reason why the tax code is so complicated. That makes it easier for a rich man’s tax lawyer to avoid paying taxes, and it makes it easier for the IRS to persecute someone who can’t afford said tax lawyer...
Are you reading an article from a source other than the Wall Street Journal?
The WSJ article doesn't say that they sold the coins at all. It does say "[b]ut in an IRS audit, Mr. McNulty, a Rhode Island-based plant manager at a sailcloth factory, conceded that he engaged in prohibited transactions in 2015 and 2016, although the decision didn’t say what they were. That dissolved his IRA and caused taxable IRA payouts to him of about $316,000."
But that didn't include the gold held in the family safe.
The article continues "[t]hat 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."
No mention whatsoever about selling the coins.
How dare these peasants control government...I mean their own money!
American eagles would be valued as bullion, market price.
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