Considering a Gold IRA to diversify your IRA or 401(k)? One crucial requirement is where your precious metals must be stored.
Home storage is never permitted for Gold IRA assets. Despite what some questionable sources might claim, the IRS explicitly requires you hold all Gold IRA assets in an approved depository.
Attempting home storage can lead to severe consequences:
- Immediate disqualification of your entire IRA
- Full taxation of your account’s value
- Additional penalties if you’re under 59½
IRS-approved depositories offer significant advantages over home storage:
- Advanced security systems including 24/7 surveillance, controlled access protocols, and state-of-the-art alarm systems
- Comprehensive insurance coverage protecting against theft, loss, or damage
- Regular third-party audits ensuring your metals are present and accounted for
- Proper documentation maintaining your IRA’s tax-advantaged status
When setting up your Gold IRA, you’ll select from roughly 10 depositories nationwide that meet IRS guidelines. Most investors choose either the largest facility (Delaware Depository) or one geographically closer to their location.
All depositories maintain similar security standards and insurance coverage, with only slight differences in fees and processing times.
For a comprehensive guide to penalty-free 401(k) to Gold IRA rollovers, read our Guide to Rolling Over Your 401(k) to a Gold IRA Without Penalties.