IRS Approved Depository for Gold – And Other Laws You Should Know About
Before we get into this topic I’d like to say that this article in no way constitutes legal advice on dealing with an IRS approved depository for gold or otherwise.
For all dealings with an IRS approved depository for gold, tax laws, and other regulations involving gold IRAs please consult with a legal professional or experienced gold custodian such as Regal Assets.
It’s a well-known fact that many people have lost their life savings due to economic upheaval and other factors beyond their control. Left with nothing, they now struggle to make ends meet in today’s harsh economic climate.
With the threat of hyperinflation and the declining US dollar looming over us, investing your savings into a gold IRA is one of the few secure options left. However, there are some rules and regulations you need be aware of.
In this article I’m going to give you some basic info on the rules and regulations for gold investment, particularly those having to do with an IRS approved depository for gold.
Coins and Bars
When you invest in gold you typically have two options: coins and bars (also known as bullion).
The main difference here is how the IRS requires you to report transactions involving coins as opposed to bars.
In almost all cases the IRS requires you to report all transaction in which gold bars are involved. On the other hand, some coins are exempt from this such as the American Gold Eagle coin.
So does this mean you should just stock up on coins that are exempt from reporting?
The situation is actually much more complicated than that.
Trying to dodge the IRS can oftentimes lead to heavy fines, penalties, and possibly even jail time. Working with a qualified gold custodian can prevent you from accidentally doing anything illegal and save you a lot of trouble.
Storage Depository Regulation
When you invest into gold or other precious metals it is advised that you allow a qualified custodian to manage your assets instead of burying them in your backyard or something like that.
The thing is, when you start a self-directed IRA with a custodian there are regulations and laws concerning how the gold is stored in an IRS approved depository for gold.
While your custodian will be the one to deal with these laws there is one that you should familiarize yourself with:
The IRS does not allow a custodian to store your gold themselves. It must be held in an IRS approved depository for gold at a separate location.
This can create confusion when people think that their custodian is the one storing their gold.
The fact is that your gold will be stored at an IRS approved depository for gold in a separate location. Sometimes this depository will be owned and operated by the custodian, other times it will be owned by another company entirely.
In any case, your custodian will work to ensure that your gold is safe and that you have fast access to it as needed.
One of the best things about starting a gold IRA is the fact that you can rollover existing IRAs, such as a 401k, into your new gold IRA.
However, when doing this there are some laws and regulations that must be followed in order to avoid any tax penalties that can diminish your savings.
– First and foremost is the fact that once started a rollover must be completed within 60 days.
In most cases this isn’t an issue but due to the fact that a rollover is a bit more complicated than a simple transfer you should make sure to talk to your custodian and get everything set up and ready to go before you start.
– The second rule concerns the frequency of which you can perform rollovers. According to the IRS you’re only allowed to rollover the same assets once during a 12 month period.
This makes it very important to properly plan out your rollover with your custodian with a long-term strategy in mind.
If you’re interested in rolling over your current IRA into a more secure gold IRA to protect your savings from today’s troubled economy my most highly recommended custodian is Regal Assets.
Regal Assets is a BBB accredited industry leader with over 50 years experience and a AAA rating (the highest possible) with consumer watchdog group Business Consumer Alliance.
For more information on how Regal Assets can help you protect your savings from hyperinflation, the declining US dollar and other economic factors Click Here and get their FREE gold investors information kit.