Holding Silver Eagles as Trustee of Solo 401k
You can purchase certain precious metals, such as gold, silver, platinum, and palladium, in your retirement account. This can be a relatively safe way to grow your retirement.
The self-directed IRA and Solo 401k by Sense Financial give owners the freedom and control to invest. Account owners have checkbook control over their accounts, enabling them to invest quickly and simply, without custodian consent.
In turn, tax-deferred profits from investments go back to the retirement account. Retirement vehicles like the self-directed IRA and Solo 401k are the most tax-efficient way to purchase precious metals.
But which precious metals can be purchased in a retirement account? And how would they be stored? Can they be stored in a safe at home?
Holding silver eagles as trustee
The Silver Eagle is one example of a precious metal that can be purchased in a retirement account. Certain dealers offer purchase of the American Eagle Silver Bullion coin. The price fluctuates and is based on the market price of silver.
When investing in precious metals, keep the following in mind:
- Only certain precious metal products are allowed as retirement investments
In general, collectibles are prohibited transactions according to IRS rules. A retirement account, like a 401k, cannot invest in artwork, for example, because artwork is considered a collectible.
Coins are also collectibles. However, the IRS does specify certain limited exceptions.
Certain precious metals and products are not considered as collectibles and can be purchased within a retirement account. The Silver Eagle is one example of an allowable retirement investment.
Always check the IRS rules before purchasing an investment with your retirement account. See 31 US Code 5112 and IRC Section 408(m)(3) for specifics.
- Trustee(s) cannot use plan assets for their own benefit
This relates to the storage of IRS-allowable precious metal products.
A trustee cannot use investments for their own benefit. And storage of a plan’s assets in the trustee’s home can be viewed as a distribution of the from the plan.
Plan assets must be held in a trust, not in an individual’s personal possession. Storing precious metals in a safe at home can be deemed as being in personal possession.
Precious metals, like the Silver Eagle, should be held in a third-party, IRS-approved depository for this express purpose. The third-party, IRS-approved depository is the trust that holds the precious metals.