Precious Metals and Self-directed 401k for Business Owners
The self-directed 401k for business owners is allowed by the IRS to invest in certain types of precious metals, including gold and silver. Investing in precious metals can be a great way to grow and safeguard your Solo 401k funds. However, before making investments, plan owners need to understand first which types of precious metals their Solo 401k plan can hold. Watch this Solo 401k Quick Tip video to learn more.
Precious Metals and Self-directed 401k for Business Owners
A Solo401k can hold precious metals, with the exception of collectible coins, or any other collectibles for that matter. Only IRS-approved coins like the American Gold or Silver Eagles are allowed. Bars or coin bullion are also allowed with the minimum fineness requirement of 99.5% and up, depending on the type of precious metals. Other precious metals that are not on this list are deemed Collectibles and cannot be held in a retirement account. Once Solo401k purchases collectible item, it will be recognized as a distribution from the account, and taxes will apply.