If you are like most SD readers, you are very worried about the current financial state of the US, a country whose only current protection against bankruptcy and default is to continually print more money.
With total unfunded liabilities over $100 trillion, and with $1.5 trillion annual deficits projected to continue for the next decade, many experts fear that the government will turn to private retirement accounts for funding in order to kick the can further down the road to perpetuate the debt ponzi.
Many who can see the writing on the wall do not expect to ever see a dime of their 401K or IRA retirement plans, and have been taking the tax hit from early withdrawals in order to convert to physical gold and silver bullion.
Instead of closing down your traditional IRA and 401k, paying the penalty and taxes associated, there is another option, a SD IRA or Self Directed IRA.
Unlike the restricted investment options imposed on the traditional IRAs and 401ks which are handled by the Big Banks, SD IRA allows you to invest your retirement funds in a number of alternative investments. Alternative investments allowed by the IRS include segregated assets such as domestic or foreign real estate (land, rentals, foreclosures, etc.), private businesses, stock and mutual funds, and certain precious metals.
According to Internal Revenue Code section 408(m) gold and silver coins as described in sections 5112(a) and 5112(e) of title 31 are EXEMPT from being treated as a distribution:
408(m) Investment in collectibles treated as distributions
(1) In general
The acquisition by an individual retirement account or by an individually-directed account under a plan described in section 401(a) of any collectible shall be treated (for purposes of this section and section 402) as a distribution from such account in an amount equal to the cost to such account of such collectible…
(3) Exception for certain coins and bullion
For purposes of this subsection, the term “collectible” shall not include—
(A) any coin which is—
(i) a gold coin described in paragraph (7), (8), (9), or (10) of section 5112 (a) of title 31, United States Code,
(ii) a silver coin described in section 5112 (e) of title 31, United States Code,
(iii) a platinum coin described in section 5112 (k) of title 31, United States Code, or
(iv) a coin issued under the laws of any State
While many bullion companies and trustees offer segregated bullion storage of gold and silver bullion purchased with your retirement funds, Lehman Brothers, MF Global, & PFG have demonstrated what counter-party risk can mean to your assets.
Most retirement account holders naively assume that they cannot hold custody of assets such as gold or silver coins held under the title of their IRA trustee.
However, according to the IRS:
‘The IRS has not actually addressed this issue (of holding coins in your own personal possession), however certain commentators in private practice, specifically the Bureau of National Affairs (BNA), their commentator on IRA prohibitive transactions under 408(m)3 provide two things:
1. The IRA owner can have custody of the coins
2. The coins must still be titled by the IRA trustee
Those are two different issues, the custody, and the title.
Their (BNA) recommendation in any circumstance is both custody and title be in possession of the trustee to avoid appearances of use of the coins by the IRA owner.
The IRS hasn’t issued any specific guidance in this particular matter. The BNA is a respected firm that has viable tax commentary.’
The IRC definitively requires all self-directed IRA investments under title of the trustee to remain segregated from all other personal assets.
Under no circumstance should IRA assets commingle with any other personal assets. Furthermore, those holding custody of IRA assets may not use or personally benefit from the use of IRA assets.
Process of setting up a SD IRA:
1. Our professionals will guide you through the formation of a Limited Liability Company (LLC) to meet the guidelines set-forth by the IRS. We will work with you in selecting a state to file your articles of organization and obtain an Employer Identification Number (EIN) for your newly formed LLC. The specific state you incorporate in will dictate your protections and potential annual charges to maintain your LLC.
2. Our professionals will work with you in selecting an authorized account custodian for your IRA.
The account custodian will provide the oversight mandated to comply with the IRS guidelines. The custodian will also serve as the escrow agent for your funds until your LLC’s checking account is available.
3. Our professionals will assist in locating an authorized bank to open a checking account for your LLC. Some banks have hidden fees and charges associated with opening and maintaining a business checking account for your LLC, thus increasing annual maintenance fees of your SD IRA.
4. Our professionals will be available for your assistance throughout the process with normal response times within 24 hours.
Annual fees are minimal on a newly established SD IRA if formed correctly.
You will have a custodian account charge and you may have an annual state LLC renewal and registered agent fee. The costs are very often nominal to the comparable charges associated with the IRA and 401K admin fees managed by large banks.
The fee for our professionals to set-up your SD IRA is a one time charge and our professionals will be available for your assistance throughout the process.
Set-up your SD IRA Today! Call 614.300.1094
SD IRA Program Fee: $1299
***AND a Promotional Discount upon converting your SD IRA to IRC compliant physical gold and silver coins from SD Bullion!***
SD IRA Conversion $50,000-$99,999: $150 Discount Code
SD IRA Conversion $100,000-$199,999: $350 Discount Code
SD IRA Conversion $200,000-$299,999: $600 Discount Code
SD IRA Conversion >$300,000: $999 Discount Code
An anonymous SD reader has also donated Silver American Eagles to be given to the first 10 individuals who set-up a new SD IRA and take physical control of their retirement assets with SD Bullion!!
For a complete review of Internal Revenue Code and disqualifying transactions Click Here.
Please click here for a full testimonial of SD reader AGXIIK who just completed converting his IRA to physical gold and silver eagles held in his own personal possession.
SD IRA is a division of Doc Holdings, LLC.
Information provided by Doc Holdings, LLC. is not legal or financial advice.
Doc Holdings, LLC. is not a law firm and is not a substitute for an attorney or a law firm. Please consult your attorney regarding your personal financial situation.