Did you open and fund an LLC with your self-directed IRA to store precious metals at home? Have you developed concerns about IRS regulations, the security of your assets, or the magnitude of oversight provided by your IRA company? Publications from esteemed bodies like the Retirement Industry Trust Association (RITA) have highlighted common concerns about this investment model, which have prompted some IRA holders—and IRA custodians—to shy away from or disallow the practice altogether. Fortunately, if you’ve decided to unwind your home storage LLC, you may do so without compromising the compliance of your IRA.
Below we’ll address the steps for legally dissolving your LLC and transitioning precious metals from home storage to a depository, all while maintaining the tax advantages of your self-directed retirement plan. Please keep in mind that immediate fulfilment of this process is unlikely. You don’t have to approach each facet all at once, as attempting to do so may result in mistakes and unwanted delays.
You may open an account online (usually in 10 minutes or less) and complete our Transfer/Rollover form to request the re-registration of your IRA-owned LLC. Once the account is open and you’ve completed the Transfer/Rollover form, submit it to our office so that we may sign the Letter of Acceptance and forward it to your current custodian.
You may begin the process of unwinding the LLC as soon as it arrives in our custody. Because New Direction Trust Company cannot provide financial advice, recommend a particular course of action, or execute the legal nuances involved with dissolving a business entity, please consult with a legal professional to determine a smooth and compliant procedure for unwinding the IRA-owned entity.
With the LLC dissolved, you’ll need to arrange the shipment of your precious metals to a depository. Unlike our competitors, New Direction Trust Company allows you to choose from a list of storage facilities across the United States and in other countries throughout the world. You may have pursued home storage to keep your assets close and secured by your chosen measures, but our depository options can provide that same peace of mind. All of these facilities offer segregated storage, meaning your retirement assets will remain safely stored in a unique locker. Some depositories also offer commingled storage for a lower fee.
When you’ve selected the storage facility that will suit your needs, please submit the corresponding Depository Election Form to our office. We will forward the document to the depository and create a storage account on behalf of your IRA.
You’ll have the freedom to prepare the shipment with as much security and insurance as you see fit. The depository will provide a transaction report to confirm receipt when the package arrives, at which point we’ll update your account holdings to reflect the new assets. When it’s all said and done, the precious metals will still be under the umbrella of your IRA, but they’ll be safely housed in a third-party facility and you won’t have worry about IRS scrutiny related to home storage.
Always bear in mind that you may withdraw your precious metals in kind if physical ownership is still your ultimate goal. In-kind distributions allow you to retain your assets as personal property without incurring penalties, though taxes may apply (the collective spot value of any distributed precious metals will be reported as income). You may therefore possess your precious metals without having to liquidate beforehand.
To open a self-directed IRA account, inquire further about transferring or dissolving an LLC, or request assistance with paperwork, feel free to contact New Direction Trust Company at 877-742-1270 or firstname.lastname@example.org.