The Role Of Gold IRA Custodians And How It Affects You
The IRS has several rules regarding the storage of gold and other precious metals. It requires assets of a self directed IRA investing account be held and administered by qualified gold IRA companies.
Role Of Custodians
Files The Required IRS Reports
Gold backed IRA custodians are mandated with the responsibility of filling the necessary IRS reports. They ensure that you are on time and provide you with the necessary documentation required for tax purposes preventing you from getting in to law issues with the IRS which are very serious.
Custodians of gold in IRA accounts that are accredited by the IRS provide a customer specific custody account and ensure your gold is insured. Therefore there is no risk of you losing your precious gold IRA investment. They also provide and update the insurance company with documentation of the necessary developments in your account i.e. if you add more gold to the account.
Keeping You Informed
In cases of new rules and regulation in regards to self directed IRA investing they are tasked with the responsibility of informing you. They also reduce and help you control the number of entities you have to deal with for instance insurance, the IRS and gold companies. It saves you time as you only go to your custodian and get all the necessary information.
They ensure your gold is safe from thieves. They have better security than in your house and save you from worrying all the time about your gold. They also save you from the risk of being in trouble with the law for not declaring all your taxable wealth which may result to severe penalties.
How Keeping Your Gold In Custody Affects You
Gold purchased for a gold IRA must meet fineness requirements of 99.99% with the only exception being the American Eagle Gold which has a fineness of 99.67%
Personal Metal Depository
The IRS prohibits you from keeping the asset in your safe, a personal metal depository will be required to store the coins and bullion.
You cannot evade tax. The custodian has to provide documentation for tax assessment and determination purposes to the IRS. Taxes can eat away at your investment so make sure that you understand the gold IRA rules.
In case of an emergency you cannot access your gold. You have to first complete the documentation and follow procedures at the company which may make you unable to do anything during an emergency or miss a chance to make a quick buck in case an opportunity presents.
Monthly And Annual Fees
You are required to pay these which mean they cut into your investment unlike if you had the gold stored in your home.
If your gold is kept at an offsite depository, the time taken to ship it across the state may cost you valuable time if you need to liquidate fast in order to capitalize on an investment opportunity.
Due to the individualized options and regulations that are hard to comprehend for many people very few gold IRA custodians are competent or qualified for this task. The accounts administrators should issue you with a statement of your account regularly, file IRS reports, deal with your insurance documentation and assist you in understanding the rules and regulation in regards to self directed gold IRA investing.