Fake Apmex 1oz Gold Bar

If you THINK there is any such thing as a "self-storage gold and silver IRA", you've already been conned by the radio ads. No such thing exists according to the IRS, and their opinion is the one that counts.

 

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Good thinking and good strategy.

 

And on the second Thursday after the rising of the full moon they come for your firstborn child.

 

I can't even imagine how someone could actually believe that would be a possibility.

 

Maybe if you're part of the uber rich but I agree there is no way an average person would have the resources or ability to do it

 

Bingo.

 

While surfing the news outlet over lunch, an ad did come up showing a certain Precious metals IRA company commercial with the citizen counting his gold coins in a safe provided by the company. A little googling came up with

Quote from https://www.law360.com/articles/661562
“What if markets crash like 2008? And what if your IRA custodian becomes bankrupt?”

“The [REDACTED] Home Storage Gold IRA is different — YOU have total control. As sole manager, you decide what to buy and when. You don’t pay depository fees — or most other ‘service’ fees ....”

“Best of all, you can keep approved gold, silver and platinum coins in your home safe, or store them in your safety deposit box at a local bank — no far-off depository needed ....”

In tiny print, however, the website notes — “*See disclaimer for details.” When you eventually locate the disclaimer, in tiny print, at the bottom of the website, the company announces that it does not provide legal or tax advice and that, you, the investor are completely on your own:

*Disclaimer: [The company] does not provide legal, tax, or investment advice ... All statements in the website related to home storage gold IRAs are the opinions of an attorney retained by [the company] and are not the statements or opinions of [the company] ... [The company] encourages each individual to consult with his or her tax attorney prior to opening a home storage gold IRA and subsequently investing in precious metals to be stored in your home or safety deposit box.

Indeed, the website’s 11-page transaction agreement, which all customers are apparently required to sign, goes further, expressly disclaiming any responsibility for, well, anything to do with creating this account:



But therein lies the rub; the company makes absolutely no promise that any of this is legal. And the old adage is true, if it sounds too good to be true, it probably is.
END Quote.
and from same source:

If your precious metals are not held by a trustee, the purchase is treated as a taxable distribution from your retirement account. Your IRA assets will lose their tax-deferred status and be subject to immediate taxation (at current applicable rates), plus, if you are under age 59 1/2, you face a 10 percent penalty for early withdrawal in addition to any taxes owed. Some states impose additional early-withdrawal penalties.

Try not to be scammed. It doesn't pay to mess with the IRS and your retirement.

 

The REDACTED company's entire sales pitch is ONE BIG LIE because it goes counter to every single IRS regulation regarding this very subject. Snake oil salesmen didn't disappear or die out, they just adapted themselves to new wares, modern times and current-day suckers.

 

Yes it is, and they back away from their claims completely in the fine print.

 

And of course they're counting on the fact that a good number, probably the great majority of the people they persuade to sign with them, couldn't possibly be bothered to ever read any part of all that "boring" fine print.

 

of course, we could check the IRS.com website too for information ...

What types of investments can I make with my IRA?

The law does not permit IRA funds to be invested in life insurance or collectibles.

If you invest your IRA in collectibles, the amount invested is considered distributed in the year invested and you may have to pay a 10% additional tax on early distributions.

Here are some examples of collectibles:

• Artwork,
• Rugs,
• Antiques,
• Metals - with exceptions for certain kinds of bullion,
• Gems,
• Stamps,
• Coins - (but there are exceptions for certain coins),
• Alcoholic beverages, and
• Certain other tangible personal property.

Check Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs), for more information on collectibles.

IRA trustees are permitted to impose additional restrictions on investments. For example, because of administrative burdens, many IRA trustees do not permit IRA owners to invest IRA funds in real estate. IRA law does not prohibit investing in real estate but trustees are not required to offer real estate as an option.

If my IRA invests in gold or other bullion, can I store the bullion in my home?

Gold and other bullion are “collectibles” under the IRA statutes, and the law discourages the holding of collectibles in IRAs. There is an exception for certain highly refined bullion provided it is in the physical possession of a bank or an IRS-approved nonbank trustee. This rule also applies to an indirect acquisition, such as having an IRA-owned Limited Liability Company (LLC) buy the bullion. IRA investments in other unconventional assets, such as closely held companies and real estate, run the risk of disqualifying the IRA because of the prohibited transaction rules against self-dealing.


The "IRS approved nonbank trustee" link ==> https://www.irs.gov/retirement-plans/approved-nonbank-trustees-and-custodians

the "prohibited transaction rules" link ==> https://www.irs.gov/retirement-plan...yee/retirement-topics-prohibited-transactions

which states ....
Prohibited transactions are certain transactions between a retirement plan and a disqualified person. If you are a disqualified person who takes part in a prohibited transaction, you must pay a tax.

Prohibited transactions in a qualified plan
Prohibited transactions generally include the following transactions:

1. A disqualified person’s transfer of plan income or assets to, or use of them by or for his or her benefit
   
2. A fiduciary’s act by which he or she deals with plan income or assets in his or her own interest
   
3. A fiduciary’s receipt of consideration for his or her own account in a transaction that involves plan income or assets from any party dealing with the plan
   
4. Any of the following acts between the plan and a disqualified person:

• • Selling, exchanging, or leasing property
    
  • Lending money or extending credit
    
  • Furnishing goods, services or facilities

Exempt transactions
The law exempts some transactions from being prohibited transactions. For example, if you are a disqualified person and receive any benefit to which you are entitled as a plan participant or beneficiary (such as a participant loan), this is not considered a prohibited transaction. However, the benefit must be on the same terms as for all other participants and beneficiaries.

Prohibited transactions in an IRA
Generally, a prohibited transaction in an IRA is any improper use of an IRA account or annuity by the IRA owner, his or her beneficiary or any disqualified person.

Disqualified persons include the IRA owner’s fiduciary and members of his or her family (spouse, ancestor, lineal descendant, and any spouse of a lineal descendant).

The following are examples of possible prohibited transactions with an IRA.

• Borrowing money from it
• Selling property to it
• Using it as security for a loan
• Buying property for personal use (present or future) with IRA funds

Who is a fiduciary?
An IRA fiduciary includes anyone who does any of the following:

• Exercises any discretionary authority or discretionary control in managing the IRA or exercises any authority or control in managing or disposing of its assets.
• Provides investment advice to the IRA for a fee, or has any authority or responsibility to do so.
• Has any discretionary authority or discretionary responsibility in administering the IRA.

Effect on an IRA account
Generally, if an IRA owner or his or her beneficiaries engage in a prohibited transaction in connection with an IRA account at any time during the year, the account stops being an IRA as of the first day of that year. The effect of this is the account is treated as distributing all its assets to the IRA owner at their fair market values on the first day of the year. If the total of those values is more than the basis in the IRA, the IRA owner will have a taxable gain that is includible in his or her income.

Additional resources

• Publication 560, Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans)
• Publication 590-A, Individual Retirement Arrangements (IRAs)
• Retirement Plans FAQs regarding Plan Investments
• Internal Revenue Manual - Prohibited Transactions

• 
  and the definition of a Disqualified person is ...

Disqualified person.

You are a disqualified person if you are any of the following.

1. A fiduciary of the plan.
   
   
2. A person providing services to the plan.
   
   
3. An employer, any of whose employees are covered by the plan.
   
   
4. An employee organization, any of whose members are covered by the plan.
   
   
5. Any direct or indirect owner of 50% or more of any of the following.
   1. The combined voting power of all classes of stock entitled to vote, or the total value of shares of all classes of stock of a corporation that is an employer or employee organization described in (3) or (4).
      
      
   2. The capital interest or profits interest of a partnership that is an employer or employee organization described in (3) or (4).
      
      
   3. The beneficial interest of a trust or unincorporated enterprise that is an employer or an employee organization described in (3) or (4).
6. A member of the family of any individual described in (1), (2), (3), or (5). (A member of a family is the spouse, ancestor, lineal descendant, or any spouse of a lineal descendant.)
   
   
7. and more .... go to the link ==> https://www.irs.gov/publications/p560#en_US_2016_publink10009044

 

but if that's too much reading, this Forbes article is a bit more streamlined ==> https://www.forbes.com/sites/nextav...re-opening-a-gold-or-silver-ira/#ea0b56b76b8b

 

The party of the first part and the party of the second part...god, I so love legalese.

 

Forbes to the rescue, and not a moment too soon.

 

You may particularily like this quote from the article ..

“The problem with gold,” says Koesterich, “is that there’s no logical reason why this shiny metal should be a store of value — except that everyone has sort of agreed for thousands of years that it is.” That’s why you still see investors flock to gold in a crisis, as they did one day in mid-May when the Dow Jones Industrial Average plunged 372 points in a single day, while gold prices spiked by nearly 2%.


Maybe we should just revert back to Shells, pearls and animals as "money" like it was before Mined Metals.

 

Some very interesting points brought up here, and I can't see the need to take issue with any of them. Just as a footnote and an fyi, if we're talking about "created value", then diamonds are to gold what mud is to steel, since they, other than for industrial applications, have no earthly practical value whatsoever. Instead, those literally, effectively worthless bits of hardened carbon are but a projected figment of the collective imagination so very successfully propagated by those absolute marketing geniuses, modern day snake oil salesmen and consummate rip-of-artists at De Beers. What a racket that is!

 

I used to design rings. It's been interesting. I recall when color diamonds were a travesty and junk and used for industrial purposes. I had a small collection of colored diamonds because they were cheap. Then all of a sudden the marketing blitz of "colored diamonds" wow .. now you actually have to pay for them.

 

If you were in the business, no offense was meant, and regardless, you better than most would understand how diamonds were magically made valuable only by re-burying a good, if not likely better, amount of the product in warehousing vaults to keep them out of the marketplace and thereby entirely artificially pump up the price.

 

They are really cool, and very sparkly with high intensity light.
Reminds me of Gold and Silver.
and what's the phrase that women say .....

 

That, and "a diamond is forever" were two expressions expressly created for the De Beers Diamond Company for a revolutionary new marketing campaign aimed directly and almost exclusively at Americans, probably since the purveyors of these worthless stones knew that a preponderance of both the world's greatest suckers and some of the biggest storehouses of attendant discretionary funds were quite likely to be found here. It's similar to the rationale Nigerian and Indian internet and phone scammers have long used as the reason for chosing the U.S. as their playground ("preyground"?) of choice; we're comparatively well off and we're traditionally easy marks.