LOS ANGELES, CA--(Marketwired - October 27, 2016) - Goldco Precious Metals today issued a warning to Americans age 50 and over that a widely publicized type of retirement account may not only be illegal, but could subject account holders to severe IRS penalties.
So-called "home storage" Gold IRAs are marketed as a way for Americans to create or roll over their IRA/401(k)s into gold and silver coins and bullion that they can store in their homes. Unfortunately, taking personal custody of IRA assets is strictly prohibited by the IRS.
Goldco CEO Trevor Gerszt says, "It's an appealing concept, being able to physically take possession of your retirement assets. But the IRS sees it as taking an early distribution. The penalties are so severe they could be devastating to your savings and your future security. That's why we won't do home storage IRAs."
Recently, the Wall Street Journal reported marketing of such accounts has become so widespread the IRS was forced to issue a warning to consumers "to be wary of anyone claiming that precious metals held in your IRA can be stored at home or in a safe-deposit box."
While storing IRA assets at home can create legal problems, for many Americans the idea of holding precious metals in an IRA is attractive. As CNBC reports growing concerns about an uncertain market, investors faced with zero-interest savings and even the election's impact are finding safe haven assets like precious metals a vital solution.
"Many Americans lost twenty to fifty percent of their retirement accounts in the recession," says Gerszt. "If we see another crash, people in their fifties and sixties won't have time to ride it out. Gold and silver let them take a portion of their savings off the table."
For those who remember how much their dollars used to buy, and worry how much they'll buy in the future, the fact that gold resists inflation far better than paper currency is also appealing. Fortunately, holding gold in an IRA is within IRS guidelines, just so long as you don't keep it at home.
Goldco Precious Metals, located in Los Angeles, CA, is a privately held retirement services firm that offers a range of retirement investment accounts including traditional Gold IRAs, Silver IRAs, as well as IRA and 401(k) Rollovers and 403(b) Rollovers.