If you are interested in rolling the funds in your traditional IRA into physical precious metals, you must decide how you wish to store them before funding a Self Directed IRA. Your Allegiance Gold account executive will answer any questions you may have and help you determine which type of storage will work best for your retirement savings needs.
Allegiance Gold: Depository Storage
Depository Storage IRA
With depository storage, your precious metals are stored in a high-security facility that’s 100 percent insured against all loss, damage, theft or other liability. Putting your precious metals in depository storage ensures that they are fully protected and frees you from any responsibilities that go along with storing your precious metals.
Setting up Depository Storage
Step 1: Open a Self-Directed IRA and select a custodian — Allegiance Gold works with leading Self-Directed IRA Custodians who offer Precious Metals IRAs.
Step 2: Fund the account — Once your Self-Directed IRA is open, you can deposit funds into the account by rolling over an existing IRA or 401(k) or funding a new one. Your chosen Self-Directed IRA Custodian will guide you through the process of funding your IRA.
Step 3: Select precious metals for your IRA — Now that your account is funded, your Allegiance Gold account executive will help you select and purchase approved products for your Precious Metals IRA. They will then be shipped, fully insured, to your chosen depository for safe storage.
Taking physical possession of your precious metals gives you the freedom to move your metals without contacting your custodians for approval. Along with this benefit, however, come more responsibilities, such as paying annual LLC costs and annual reporting of your Self-Storage IRA’s holdings to your passive custodian.
Setting up Self-Storage
Step 1: Open a Self-Directed IRA account with Kingdom Trust — Allegiance Gold works with Kingdom Trust, an independent custodian regulated by the South Dakota Division of Banking. Kingdom Trust facilitates the investment process at your direction and provides the necessary IRS reporting for your Precious Metals IRA account. Kingdom Trust takes care of all administrative requirements and ensures that your retirement account retains its tax-deferred status.
Step 2: Rollover — After your Self-Directed IRA account is established, the next step is to deposit funds into your account. Whether you are rolling over an existing IRA or 401(k) or funding a new one, your custodian will guide you through the process of transferring funds into your new Self-Directed IRA.
Step 3: Create an LLC — For a self-storage Precious Metals IRA, setting up a single-member Limited Liability Company (LLC) is required. The LLC is owned by your IRA and serves as your Self-Directed IRA’s investment platform. Like a traditional IRA, all taxes are deferred until you start drawing assets from your Self-Directed IRA. It is vital to work with an experienced and professional third-party firm that’s well-versed in how to properly structure the LLC. You must also open a bank account for the LLC.
Step 4: Capitalize the IRA LLC — The next step is to capitalize the LLC. Allegiance Gold instructs your IRA custodian to invest the funds in your IRA into the LLC. Funds are invested by trading all of the membership units that belong to the LLC for the cash in your IRA. (LLC membership units are similar to stocks held in a corporation.) Once this transaction is completed, your Self-Directed IRA owns these membership units, which means that your IRA now owns the LLC. These funds are held in the LLC checking account.
Step 5: Purchase Precious Metals — Your LLC is ready to purchase IRA-approved precious metals from Allegiance Gold. Your IRA precious metals will be shipped, fully insured and trackable, to your chosen location.
To learn more about Precious Metals IRA storage options, contact an Allegiance Gold account executive online or call 1-844-790-9191.