How do I hold gold & silver in an IRA using BullionVault?1
Through a Self-Directed IRA you can invest in gold and silver for your retirement. The IRS specifies the form and other requirements to make gold and silver allowable in an IRA.
|IRS requirements include2||BullionVault|
|Minimum fineness (purity) requirement of .995 for gold and .999 for silver.||All gold and silver bought through BullionVault is of at least these purities.|
|Must not be in the form of rare or collectible (numismatic) coins.||BullionVault only offers ownership of bullion in large bar format – the same form as traded on professional markets.|
|Must be kept at arm's length from the IRA holder and be secured in a depository for safe keeping.||All bullion is stored in your choice of professionally operated vault in London, New York, Zurich, Singapore or Toronto.|
Commonly taken steps to holding gold & silver in an IRA
Find an IRA Custodian or Administrator who offers the ability to hold gold and silver in an IRA. Several providers already work with BullionVault on behalf of their clients. Some are listed below3. We recommend you do your own due diligence to ensure the Custodian or Administrator you choose meets your personal requirements as well as the relevant IRS Requirements.
- Open an IRA account with your selected Custodian or Administrator and fund it via transfer, rollover and/or annual IRA contribution.
- Inform your Custodian or Administrator you want your IRA to buy bullion from BullionVault by completing their Buy Direction or Purchase Authorization Letter. Usually, the IRA provider will open the BullionVault account in the name of your IRA but they may ask you to do it. The IRA provider will then transfer funds into the account. (See our payment instructions.)
- Once the account has been funded, if your Custodian or Administrator opened the BullionVault account they will send you the username and password. You can then direct the purchase of gold and silver via our secure website.
BullionVault charges a commission to purchase and sell bullion and a monthly fee to store and insure your property. Please review our charges. To find out why BullionVault is the cheapest, most secure way of holding IRS permissible gold and silver in your IRA, we encourage you to review our FAQs. Your Custodian/Administrator will charge you their own fees separately from our dealing and storage fees.
1 We do not (nor are we able to) offer tax or legal advice with respect to IRAs or indeed any other aspect of your use of BullionVault, it is your responsibility to seek appropriate advice.
2 Some of the various rules and laws that define eligibility of gold and silver bullion for an IRA can be found in these, as well as other, publications:
- Investment in collectibles and the exceptions for gold & silver bullion: https://www.irs.gov/pub/irs-pdf/p590a.pdf
- Section 304 of The Taxpayer Relief Act of 1997 specifies that the fineness of gold and silver bullion must be of a minimum fineness to satisfy a regulated futures contract: http://www.gpo.gov/fdsys/pkg/BILLS-105hr2014enr/pdf/BILLS-105hr2014enr.pdf
- Internal Revenue Code Sec 408 (m) (3) deals with the regulations for placing gold, silver and other precious metals into a self-directed IRA: http://www.gpo.gov/fdsys/pkg/USCODE-2011-title26/pdf/USCODE-2011-title26-subtitleA-chap1-subchapD-partI-subpartA-sec408.pdf
- Section 7 of the Commodity Exchange Act, 7 U.S.C. 7) refers to Designation of boards of trade as contract markets: http://www.cftc.gov/files/ogc/comex060601.pdf
- The links below deal with contract specifications for gold and silver under CME (COMEX) exchange rules: http://www.cftc.gov/files/ogc/comex060601.pdf http://www.cmegroup.com/rulebook/NYMEX/1a/112.pdf
Regulations and especially tax regulations change from time to time and we take no responsibility for the foregoing’s relevance or up-to-dateness.
3 Please note that though we offer this information to you freely, we are neither endorsing nor recommending any particular company. We have no affiliation with any of the providers listed and do not accept any responsibility for any business you may transact with them. Your provider will charge you their fees separately from our dealing and storage fees, which will be debited from the BullionVault account balance.