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<p>[QUOTE=&quot;Clawcoins, post: 2901716, member: 77814&quot;]of course, we could check the IRS.com website too for information ...</p><p><br /></p><p><b>What types of investments can I make with my IRA?</b></p><p><br /></p><p>The law does not permit IRA funds to be invested in life insurance or collectibles.</p><p><br /></p><p>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.</p><p><br /></p><p>Here are some examples of collectibles:</p><p><br /></p><ul> <li>Artwork,</li> <li>Rugs,</li> <li>Antiques,</li> <li>Metals - with exceptions for certain kinds of bullion,</li> <li>Gems,</li> <li>Stamps,</li> <li>Coins - (but there are exceptions for certain coins),</li> <li>Alcoholic beverages, and</li> <li>Certain other tangible personal property.</li> </ul><p><br /></p><p>Check <a href="https://www.irs.gov/publications/p590a/index.html" target="_blank" class="externalLink ProxyLink" data-proxy-href="https://www.irs.gov/publications/p590a/index.html" rel="nofollow">Publication 590-A</a>, Contributions to Individual Retirement Arrangements (IRAs), for more information on collectibles.</p><p><br /></p><p>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.</p><p><br /></p><p><b>If my IRA invests in gold or other bullion, can I store the bullion in my home?</b></p><p><br /></p><p>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 <a href="https://www.irs.gov/retirement-plans/approved-nonbank-trustees-and-custodians" target="_blank" class="externalLink ProxyLink" data-proxy-href="https://www.irs.gov/retirement-plans/approved-nonbank-trustees-and-custodians" rel="nofollow">IRS-approved nonbank trustee</a>. 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 <a href="https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-prohibited-transactions" target="_blank" class="externalLink ProxyLink" data-proxy-href="https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-prohibited-transactions" rel="nofollow">prohibited transaction</a> rules against self-dealing.</p><p><br /></p><p><br /></p><p>The &quot;IRS approved nonbank trustee&quot; link ==&gt; <a href="https://www.irs.gov/retirement-plans/approved-nonbank-trustees-and-custodians" target="_blank" class="externalLink ProxyLink" data-proxy-href="https://www.irs.gov/retirement-plans/approved-nonbank-trustees-and-custodians" rel="nofollow">https://www.irs.gov/retirement-plans/approved-nonbank-trustees-and-custodians</a></p><p><br /></p><p>the &quot;prohibited transaction rules&quot; link ==&gt; <a href="https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-prohibited-transactions" target="_blank" class="externalLink ProxyLink" data-proxy-href="https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-prohibited-transactions" rel="nofollow">https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-prohibited-transactions</a></p><p><br /></p><p>which states ....</p><p>Prohibited transactions are certain transactions between a retirement plan and a disqualified person. If you are a <a href="https://www.irs.gov/publications/p560/ch04.html#en_US_2013_publink10009042" target="_blank" class="externalLink ProxyLink" data-proxy-href="https://www.irs.gov/publications/p560/ch04.html#en_US_2013_publink10009042" rel="nofollow">disqualified person</a> who takes part in a prohibited transaction, you must pay a <a href="https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-prohibited-transactions" target="_blank" class="externalLink ProxyLink" data-proxy-href="https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-prohibited-transactions" rel="nofollow">tax</a>.</p><p><br /></p><p><font size="5"><b><b>Prohibited transactions in a qualified plan</b></b></font></p><p>Prohibited transactions generally include the following transactions:</p><p><br /></p><ol> <li>A disqualified person’s transfer of plan income or assets to, or use of them by or for his or her benefit<br /> </li> <li>A fiduciary’s act by which he or she deals with plan income or assets in his or her own interest<br /> </li> <li>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<br /> </li> <li>Any of the following acts between the plan and a disqualified person:</li> </ol><p> <ul> <li><ul> <li>Selling, exchanging, or leasing property<br /> </li> <li>Lending money or extending credit<br /> </li> <li>Furnishing goods, services or facilities</li> </ul></li> </ul><p><font size="4"><b><b>Exempt transactions</b></b></font></p><p>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.</p><p><br /></p><p><font size="5"><b><b>Prohibited transactions in an IRA</b></b></font></p><p>Generally, a <a href="https://www.irs.gov/publications/p590a#en_US_2013_publink1000230855" target="_blank" class="externalLink ProxyLink" data-proxy-href="https://www.irs.gov/publications/p590a#en_US_2013_publink1000230855" rel="nofollow">prohibited transaction in an IRA</a> is any improper use of an IRA account or annuity by the IRA owner, his or her beneficiary or any disqualified person.</p><p><br /></p><p>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).</p><p><br /></p><p>The following are examples of possible prohibited transactions with an IRA.</p><p><br /></p><ul> <li>Borrowing money from it</li> <li>Selling property to it</li> <li>Using it as security for a loan</li> <li>Buying property for personal use (present or future) with IRA funds</li> </ul><p><font size="4"><b><b>Who is a fiduciary?</b></b></font></p><p>An IRA fiduciary includes anyone who does any of the following:</p><p><br /></p><ul> <li>Exercises any discretionary authority or discretionary control in managing the IRA or exercises any authority or control in managing or disposing of its assets.</li> <li>Provides investment advice to the IRA for a fee, or has any authority or responsibility to do so.</li> <li>Has any discretionary authority or discretionary responsibility in administering the IRA.</li> </ul><p><font size="4"><b><b>Effect on an IRA account</b></b></font></p><p>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.</p><p><br /></p><p><font size="4"><b><b>Additional resources</b></b></font></p><ul> <li><a href="https://www.irs.gov/publications/p560/ch02.html" target="_blank" class="externalLink ProxyLink" data-proxy-href="https://www.irs.gov/publications/p560/ch02.html" rel="nofollow">Publication 560</a>, Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans)</li> <li><a href="https://www.irs.gov/publications/p590a" target="_blank" class="externalLink ProxyLink" data-proxy-href="https://www.irs.gov/publications/p590a" rel="nofollow">Publication 590-A</a>, Individual Retirement Arrangements (IRAs)</li> <li><a href="https://www.irs.gov/retirement-plans/retirement-plan-investments-faqs" target="_blank" class="externalLink ProxyLink" data-proxy-href="https://www.irs.gov/retirement-plans/retirement-plan-investments-faqs" rel="nofollow">Retirement Plans FAQs regarding Plan Investments</a></li> <li><a href="https://www.irs.gov/irm/part4/irm_04-072-011.html" target="_blank" class="externalLink ProxyLink" data-proxy-href="https://www.irs.gov/irm/part4/irm_04-072-011.html" rel="nofollow">Internal Revenue Manual - Prohibited Transactions</a></li> </ul><p> <ul> <li></li> </ul><p> <ul> <li><br /> and the definition of a Disqualified person is ...</li> </ul><p> <ul> <li></li> </ul><p><b>Disqualified person.</b></p><p><br /></p><p>You are a disqualified person if you are any of the following.</p><p><br /></p><ol> <li>A fiduciary of the plan.<br /> <br /> </li> <li>A person providing services to the plan.<br /> <br /> </li> <li>An employer, any of whose employees are covered by the plan.<br /> <br /> </li> <li>An employee organization, any of whose members are covered by the plan.<br /> <br /> </li> <li>Any direct or indirect owner of 50% or more of any of the following.<ol> <li>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).<br /> <br /> </li> <li>The capital interest or profits interest of a partnership that is an employer or employee organization described in (3) or (4).<br /> <br /> </li> <li>The beneficial interest of a trust or unincorporated enterprise that is an employer or an employee organization described in (3) or (4).</li> </ol></li> <li>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.)<br /> <br /> </li> <li>and more .... go to the link ==&gt;&nbsp; <a href="https://www.irs.gov/publications/p560#en_US_2016_publink10009044" target="_blank" class="externalLink ProxyLink" data-proxy-href="https://www.irs.gov/publications/p560#en_US_2016_publink10009044" rel="nofollow">https://www.irs.gov/publications/p560#en_US_2016_publink10009044</a></li> </ol><p> <ul> <li></li> </ul><p> <ul> <li></li> </ul><p>[/QUOTE]</p><p><br /></p>

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