Holding your IRA metals ,via LLC

Shivani
By Shivani on Thu, Feb 19, 2015 - 12:56pm

After I clicked on a pop-up ad asking “Can I personally hold the gold in my IRA?” my husband and I had a conversation with a representative of Augusta Home Storage Gold IRA about how this is done. (Site: www.augustagoldira.com/home-storage-gold-ira )

This is our understanding of how it’s done through Augusta:

You pay Augusta $700 to have a special LLC set up, that can legally own IRA metals.

If you already own metals, as we do, these cannot be moved directly into the LLC account.  You sell your metals to Augusta at market price and they deposit the payment into the LLC, which then purchases metals from Augusta at market plus 1%.  (Those not already owning metals start here.) These metals are then stored wherever you wish, including at home. 

Augusta is the custodian of the LLC and sends you an annual report to fill out and file, for $50 a year.

The charm is that you know just where your metals are and they are under your own control.  Additionally, it’s the rep’s thought that if/when the government goes after folk’ retirement accounts, they will first go after the ones they can easily hit with a few computer clicks, rather than your metals.

This is the first we have heard of this kind of LLC, and of Augusta.  If anyone in the group has experience with either, we’d love to hear what you have to say.

We are wondering, if this kind of LLC is a good idea, why it’s never been mentioned in what Chris and Adam have written.  Or it perhaps it was and we missed it?

Thanks!

 

 

5 Comments

Jim H's picture
Jim H
Status: Diamond Member (Offline)
Joined: Jun 8 2009
Posts: 2379
Point of clarification...

If you already own metals, as we do, these cannot be moved directly into the LLC account.  You sell your metals to Augusta at market price and they deposit the payment into the LLC, which then purchases metals from Augusta at market plus 1%.  (Those not already owning metals start here.) These metals are then stored wherever you wish, including at home.

If you already own metals outside of an IRA... and that's how I am reading the above sentence, then why would you want to get them inside an IRA, regardless of the structure/storage location?  I understand that many people have IRA assets and want to find the best way to convert them to Gold while staying within the IRA boundaries... but I am still confused by the above statement.  Are you talking about taking metals from one IRA, for instance where they are held by a third party vault, and getting them into this other IRA where you hold them yourself?  Thanks, Jim         

jeff.oconnor's picture
jeff.oconnor
Status: Member (Offline)
Joined: Jan 18 2015
Posts: 5
Why complicate your tax situation

First if I could earn 1% on all IRA metal holdings I would be a happy camper.  2nd,  What is the advantage of adding an LLC to your tax planning?  An LLC in FL costs 150.00 to submit, an Annual Report and my CPA would charge to file the necessary Fed Taxes.

I also believe that in an IRA you cannot take possession of the articles contained therein. 

To be honest I smell a rat.

Shivani's picture
Shivani
Status: Member (Offline)
Joined: Jan 26 2010
Posts: 9
Our metals are presently in

Our metals are presently in our IRA.  Yes, I mean taking metals from an IRA where they are held by a third party account and getting them (not them, literally, but new-to-us metals of the same value) into this new LLC IRA where we hold them ourselves. Sorry I didn't make that clear.

Shivani's picture
Shivani
Status: Member (Offline)
Joined: Jan 26 2010
Posts: 9
Though a special LLC, you can

Though a special LLC, you can possess the metals yourself.  That is the whole  point.

 

DisappearingCulture's picture
DisappearingCulture
Status: Bronze Member (Offline)
Joined: Jun 21 2014
Posts: 38
PM IRA; LLC

Found this video:

 

 

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