A Precious Metals IRA sounds great when you say it out loud doesn’t it? You have precious metals like gold and silver combined with your individual retirement account. That sounds good right? Well to those of us who like to understand things a little further, Landmark Capital is here to explain how it all works. Take a look at the process that goes into a Precious Metals IRA.
Precious Metals IRA Process
Setting Up An LLC
When you have an IRA with physical metals in it you have two choices on where the metals are stored. Government Approved National Storage Plan or Local Storage Plan. In a National Storage Plan the gold and silver does not get delivered to you, rather they are stored in a third party government approved depository. With this set up there are storage fees that apply and there is no need to have an LLC like is needed in a Local Storage Plan. In a Local Storage Plan you receive your metals and hold them. This is accomplished by setting up an LLC properly.
Here Is An Example
To understand this simple process, let’s first take a look at an existing retirement account. In that retirement account it can purchase shares in a company, called stocks. That company has a manager that makes decisions on behalf of that company. That manager buys assets on behalf of the company and then receives those assets, and investors buy shares in that company.
In a gold and silver IRA, that has physical metals in it using a Local Storage Plan, is done the same way. A company is set up called an LLC that you would be the manager of. Your IRA buys shares (or what is called membership units) in your LLC. You the Manager of the LLC, buys the physical metals, and you the Manager, receives the metals on behalf of the company. Most of our clients use this options since it allows them more freedom in receiving metals through the LLC without a distribution or a tax liability.
If you want to read more in depth about our easy steps to a Precious Metals IRA click here!
Get it? Got it? Good.
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