Today’s Topic: Gold IRA Home Storage Hi, my name’s Terry White, CEO of SunWest Trust, and welcome to Tuesday at 2. As I like to do sometimes, I’ve told you before I use Google Alerts and I get articles that are on the Internet, with various keywords, and one of them, one of the things I got recently was, “Gold and Silver IRA-You Hold The Metal”,
(Gold IRA Home Storage) and I wanted to just kind of point out that you need to be careful what you read on the Internet, and you need to make sure you understand exactly what they’re saying. This particular article talks about ‘a little-known idea’ of starting an LLC, and then funding the LLC from your IRA, which is perfectly legitimate, and it talks about that in the book that we provide to you when you set up a new account, the Self-Directed IRA Handbook; it talks about that in Chapter 13. Chapter 12 talks about the kind of metals that you can buy in your IRA, and where those metals have to be stored, and so, I just want to point out, in that book, in Chapter 12, it talks about Internal Revenue Code Section 408M-3b. And it says that the gold, or your precious metals must be held specifically by a bank, and the term, ‘bank’, is defined in the code as ‘including a national or state-chartered bank, credit union, as well as a state-chartered trust company’, as defined in IRC Section 408N. So, the one thing I’m concerned about is, it leads people to believe, that you can start this IRA-LLC, and then go buy metal, and potentially put it under your mattress. And I don’t think that that’s going to comply with the Internal Revenue code. If you go on and look in Chapter 13, of the Self-Directed IRA Handbook, it also talks about something that you might do, because it says, ‘an IRA-LLC may contain a safe deposit box with the financial institution in the name of the LLC, and such safe deposit box may store acceptable precious metals. The IRA’s LLC-owned safe deposit box would most likely meet the storage requirements of IRC Section 408M 3-b. For IRAs, as to the deposit box, it is at a financial institution, meaning a bank. This form of storage has not been addressed by the IRS, the DOL, or the courts, but it is a reasonable application of the storage requirements. Storage at the office address of the IRA LLC would not meet the storage requirement rules for the precious metals’. So, the one thing I wanted to point out, the main thing I wanted to point out, is, if you’re not careful, then just read this article, it might lead you to believe that you could form an LLC, fund the LLC with your IRA, which, again, is a legitimate strategy, but then you could go buy metals, and bury ’em in your backyard, or put them under your mattress, but at least according to Matt Sorenson, and I agree with him, that would not meet the requirements of Section 408 of the Internal Revenue Code. So, just be careful, and as a way for us to help you, in guiding you through these complicated rules and stuff, so that with the things you read on the internet, you have a resource to go back and look those up and make sure they’re correct, we make available the Self-Directed IRA Handbook, written by Matt Sorenson, who’s an attorney-at-law in Arizona, and this is available, if you’d like to just e-mail me, my e-mail address is [email protected], if you put a comment on this video below, we will send you this book, and if you set up a new account with SunWest Trust, you will get this book with your welcome package. So, thank you for taking the time to watch Tuesday at Two today, I hope you’ll tune in again next week, and I hope that you’ll take some time to comment, like us on facebook, and then subscribe to this channel, so that you’ll be sure to get all the latest information that we provide here. Thank you very much.