Home Storage IRAs – Don’t Be Misled

From time to time, we receive inquiries about buying precious metals with a so-called “Home Storage IRA” or “Self-storage IRA” that uses an IRA-owned LLC entity. Some proponents of this strategy would lead investors to believe that precious metals held by an IRA-owned LLC can be stored at the IRA owner’s residence. However, this is somewhat misleading since precious metals owned by an IRA (either directly or indirectly through an IRA-owned entity) must meet certain storage requirements. In response to those inquiries, we sought out one of the nation’s leading legal authorities on the IRA LLC structure, Mathew Sorensen, a partner with the law firm of Kyler Kohler Ostermiller & Sorensen LLP, to address this issue. In his white paper, Storage Requirements for IRA-Owned Precious Metals, Mr. Sorensen discusses the complex storage requirements for holding precious metals in an IRA and/or IRA-owned LLC entity. Based upon his discussion, home storage or self-storage (storing precious metals at a residence or non-approved entity) does not appear to be an option for storing precious metals held within an IRA or IRA-owned LLC entity.

If you would like more information regarding purchasing precious metals within an IRA, please contact STRATA Trust Company at 866-928-9394. STRATA will process your precious metals investments and store the metals at a depository which meets all storage requirements.

Tags: alternative investments, IRA, IRA rules