The fear of loss or damage to investment assets is real, and one of the top concerns for investors, especially Americans saving up for retirement. Therefore, the availability of secure storage options for investment assets is critical.
This is especially true for investors who are considering investing in a silver IRA. Silver IRAs are becoming increasingly popular amongst investors who want to hedge against inflation, diversify their portfolios, and invest in tangible assets.
However, one question many investors ask is whether it is possible to store a silver IRA at home. In this article, we will explore whether you can store a silver IRA at home and what factors you need to consider when making that decision.
Silver can be purchased in an IRA, giving investors the opportunity to take advantage of the metal’s potential growth while also enjoying the tax benefits of an IRA.
Many people opt for a self-directed IRA in order to have more control over their investments, including the choice to invest in silver.
However, it’s important to do your research and choose a reputable silver dealer to ensure that you make a smart investment for your financial future.
Now, let’s move on to the question so many investors are asking, can you store a silver IRA at home?
When considering silver IRA or gold IRA purchases, it is technically possible to establish an LLC and have control over the process, provided you meet specific criteria.
However, it is crucial to note that the silver or gold cannot be stored in your residence; it must be securely held in a depository location registered under the LLC’s name. For example, a safety deposit box would meet this requirement.
Furthermore, it is important to refrain from storing your precious metals in a safe or under your mattress at home, as such actions would be considered a distribution. For individuals under 59½ years of age, distributions are considered early withdrawals and are subject to a 10% penalty.
The only silver IRA company we know in the US that offers home storage IRA is American Coin Co. We recommend that you contact them or your tax advisor for more information about storing your silver IRA at home.
Now, let’s take a look at what the IRS says about storing a silver IRA at home.
The IRS regulates silver IRAs, just like a gold IRA or any other IRA, and requires that they be stored with an IRS-approved entity. These entities include banks, credit unions, trust companies, and, most commonly, depositories. As per the IRS regulations, the entity that holds the silver IRA must be both an IRS-approved custodian and a non-bank depository.
Although the IRS does not explicitly prohibit investors from storing silver IRAs at home, it is not advisable for several reasons. Firstly, it is more challenging to ensure that your silver is secure from theft or damage at home than it is in a safe deposit box or depository.
Secondly, if the IRS discovers your silver IRA is not being held with an approved entity, the penalty can be severe. You can lose your tax benefits and be hit with penalties and interest.
Lastly, most insurance companies do not cover precious metals stored at home, so you would have to spend extra cash on more expensive insurance policies.
If you are still determined to store your silver IRA at home, you must ensure you have a secure place to store the silver. It would be best if you had a fire-safe with reinforced walls and fireproof insulation to protect the silver from heat and fire.
Additionally, during storage, the silver should not be left in plain sight and should be hidden in an unobtrusive location. You should also have insurance that covers your silver in case of theft or damage.
Suppose you decide to store your silver IRA at an approved private depository. In that case, you will have peace of mind knowing that your precious metal is stored in a highly secure and regulated facility. These facilities have 24/7 security, climate-controlled vaults, and experienced staff who specialize in the secure handling and storage of precious metals.
When storing your silver IRA at a depository you can find peace of mind knowing that your physical precious metals are securely protected against fraud, theft, and other potential risks. This level of security is ensured through the implementation of rigorous 24/7 security practices at reputable depositories.
Furthermore, depositories offer the benefit of lower storage fees for retirement funds, making them an attractive option. It is important to select a depository that aligns with your specific account type, and a knowledgeable precious metals custodian can provide guidance in this regard.
These experienced professionals also offer valuable assistance in selecting the ideal investments based on your risk tolerance and target investment value. Additionally, a trusted precious metal dealer can help you stay on top of your required minimum distributions (RMDs) to ensure compliance with regulations.
Similar to traditional IRAs, withdrawing funds from silver IRAs can be intimidating and may incur capital gain taxes. However, penalties in silver IRAs tend to be higher due to the unique nature of the silver investment.
Moreover, according to the Internal Revenue Code (IRC), tax-deductible retirement accounts such as silver and gold IRAs require account holders to pay taxes when they withdraw a specific portion of their funds. For example, early withdrawals may result in a 10% penalty.
To establish a silver IRA account, you’ll need to choose a reputable silver IRA company (more information below). Then, a precious metals specialist from the respective company will ask you to provide personally identifiable information like your social security number.
If you don’t have a precious metals custodian company, they will help you set up an account with one of their preferred custodian companies (or you can choose your own).
This is the silver IRA setup process in short (works similar for most silver IRA companies):
✓ Sign Your Agreement
To secure your precious metals purchase and understand the company’s terms of doing business, you will review, approve, and sign a standard customer agreement.
✓ Fund Your Account
Fund your account with dollars from your existing retirement account or deposit funds into a completely new IRA account.
✓ Select Your Precious Metals
As soon as you have funds in your account, it’s time to start thinking about which precious metals to add to it. You get to pick but you can always ask a precious metals specialist for advice. Lastly, your silver IRA company will ship the metals to your chosen custodian.
Investors often turn to gold, silver, and other precious metals as a hedge against inflation. However, safely investing in these assets requires the assistance of a trusted custodian. Therefore, conducting comprehensive research to identify a reputable precious metals company is of utmost importance.
Fortunately, we have done that research for you. We have carefully reviewed and rated the best silver IRA companies of 2023. You can request their precious metals IRA kits directly from the reviews table below:
Can I store a silver IRA at home?
While it is indeed possible for investors to establish an LLC and maintain control throughout the process, meeting certain criteria is necessary.
It is important to bear in mind that storing silver or gold at your residence is not permissible. Instead, these valuable assets must be securely held in a depository location registered under the LLC’s name. For instance, a safety deposit box can fulfill this requirement.
Additionally, it is crucial to refrain from storing precious metals in a safe or under your mattress at home, as such actions could be deemed as a distribution.
Are there any risks associated with storing a silver IRA at home?
Storing silver IRAs at home is risky for several reasons. Firstly, securing the silver from theft or damage is more challenging compared to a safe deposit box or depository.
Secondly, if the IRS detects that the silver IRA is not with an approved entity, severe penalties can be incurred, including the loss of tax benefits and additional charges.
Lastly, it is important to note that most insurance companies do not provide coverage for precious metals stored at home, requiring investors to purchase more expensive insurance policies.
How do I store a silver IRA safely at home?
The safest way to store your silver IRA is at a depository. With a depository, you can find peace of mind knowing that your physical precious metals are securely protected against fraud, theft, and other potential risks. This level of security is ensured through the implementation of rigorous 24/7 security practices at reputable depositories.
What are the tax implications of storing a silver IRA at home?
If you store your silver IRA at home and are under 59½ years of age, it will count as a distribution, which is considered an early withdrawal and is subject to a 10% penalty.
In conclusion, storing your silver IRA at home is possible, but it comes with a considerable amount of risks. To protect your investment, it is recommended that you store your silver IRA in an IRS-approved depository or safe deposit box.
With the increasing number of approved private depositories on the market, it is much easier to store your silver IRA securely and safely. By doing so, you can rest assured that your precious metals investments are well protected and that you are compliant with IRS regulations.
That said, if you are thinking of starting a silver IRA, then our #1 recommendation for silver IRA company, Goldco, should be first on your call list! >>> Get Your FREE 2023 Gold/Silver IRA Guide Now!
Before we leave this topic, remember to always consult with your trusted financial advisor and a tax professional before moving forward with any investment decisions. This will ensure that you make the best investment and tax-related decisions for your unique situation.