Certain Gold, Silver, Platinum Coins and Bars Allowed in I.R.A.'s



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Certain precious metals coins and bullion bars can be placed into Individual Retirement Accounts per the Internal Revenue Code as legislated by Congress.   Standard I.R.A. custodian services can be obtained from such organizations as American Church Trust and Sterling Trust Company, both located in Texas, but the precious metals coins and/or bars must be physically stored in an insured depository such as HSBC in New York City and FideliTrade, Inc., in Wilmington, DE.  I have obtained the verbatim references from the U.S. Code that specifically designate what forms of gold, silver, and platinum coins and bars are permissible as investments in I.R.A.'s:

I.R.S. Publication 590, Individual Retirement Accounts
Page 33, "Investment in Collectibles, Exception"

"Your IRA can invest in one, one-half, one-quarter, or one-tenth ounce U.S. gold coins, or one-ounce silver coins minted by the Treasury Department.  It can also invest in certain platinum coins and certain gold, silver, palladium, and platinum bullion."

This expanded menu of permissible precious metals investments was granted by the following code in the Taxpayer Relief Act of 1997:

SEC. 304. CERTAIN BULLION NOT TREATED AS COLLECTIBLES. 

(a) In General.--Paragraph (3) of section 408(m) (relating to     exception for certain coins) is amended to read as follows:      

"(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,

Sec. 5112. Denominations, specifications, and design of coins

(7) A fifty dollar gold coin that is 32.7 millimeters in diameter, weighs 33.931 grams, and contains one troy ounce of fine gold. 
(One-Ounce American Eagle GOLD Coin)
(8) A twenty-five dollar gold coin that is 27.0 millimeters in
diameter, weighs 16.966 grams, and contains one-half troy ounce of fine gold. 
(1/2-Ounce American Eagle Gold Coin)
(9) A ten dollar gold coin that is 22.0 millimeters in diameter, weighs 8.483 grams, and contains one-fourth troy ounce of fine gold. 
(One-Quarter Ounce American Eagle Gold Coin)
(10) A five dollar gold coin that is 16.5 millimeters in diameter, weighs 3.393 grams, and contains one-tenth troy ounce of fine gold. 
(1/10-Ounce American Eagle Gold Coin)

"(ii) a silver coin described in section 5112(e) of title 31, United
States Code, 
(One-Ounce American Eagle SILVER Coin)

"(iii) a platinum coin described in section 5112(k) of title 31, United
States Code, (One-Ounce American Eagle PLATINUM Coin)  or

"(iv) a coin issued under the laws of any State, or

"(B) any gold, silver, platinum, or palladium bullion of a fineness equal to or exceeding the minimum fineness that a contract market (as described in section 7 of the Commodity Exchange Act, 7 U.S.C. 7) requires for metals which may be delivered in satisfaction of a regulated futures contract,  (100-Ounce and 1000-Ounce Bullion Bars)

if such bullion is in the physical possession of a trustee described
under subsection (a) of this section.".

(b) Effective Date.--The amendment made by this section shall
apply to taxable years beginning after December 31, 1997.

There you have it.  Right from the horse's mouth, or in this case, the U.S. Internal Revenue Service and the United States Code.  I do not attempt to give tax advice as an investment professional, but when you have the actual code in front of you, it leaves little to chance or interpretation.

So this is another avenue for investors in striving to obtain tax-deferred gains from precious metals investments.  And one worth pursuing given the lack of potential in most investment alternatives today.

 

DIRECTLY FROM www.Sterling-Trust.com

What Types of Precious Metals are Permitted within a Sterling-Trust Company PRECIOUS METALS IRA?


The Internal Revenue Service allows many different types of precious metals to be held in Individual Retirement Accounts. The following coins and bullion products will be accepted by Sterling Trust Company and our depository of choice, Delaware Depository Service Company (D.D.S.C./FideliTrade):

  • American Gold, Silver, and Platinum Eagle Coins

  • Austrian Philharmonic Coins
    Australian Kangaroo/Nuggets, Kookaburras, and Koala Coins

  • Canadian Gold, Silver, and Platinum Maple Leaf Coins

  • Silver Mexican Libertads

  • Platinum Isle of Man Noble Coins

  • Gold bars and rounds manufactured by a NYMEX or COMEX approved refiner/assayer and meeting minimum fineness requirements of .995+

  • Silver bars and rounds manufactured by a COMEX approved refiner/assayer and meeting minimum fineness requirements of .999+

  • Platinum bars and rounds manufactured by a NYMEX approved refiner/assayer and meeting minimum fineness requirements of .9995+

  • Palladium bars and rounds manufactured by a NYMEX approved refiner/assayer and meeting minimum fineness requirements of .9995+

 


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