Precious Metals Solo 401k: Physical Holding Requirements
Adding precious metals such as gold or silver is a great way to safeguard a retirement portfolio. Many plan holders of the Solo 401k have taken advantage of the flexible investment choices to invest in precious metals. The Precious Metals Solo 401k plan is gaining popularity among investors as a safe and secure long-termĀ investment.
Solo 401k plan holders need to be aware that they need to follow the Physical Holding Requirement for all precious metals held in the plan. Is it allowed for the plan owners to keep the purchased gold bars at their house? Watch this video to learn how you can comply with the physical holding requirement when investing in precious metals with the Solo 401k plan.
Precious Metals Solo 401k: Physical Holding Requirement
An account owner of the plan is considered a disqualified person. Therefore, a plan owner is not allowed to have physical possession of any precious metals in their Solo401k. The IRS requires that any precious metals owned by a Solo401k plan are to be held by a financial institution or U.S. bank. Account holders can deposit their precious metals, such as gold coins or silver bars, in a safety deposit box at a bank, for example. Failing to follow this storage requirement will be seen as a distribution from the Precious Metals Solo 401k plan.