1. Self-Directed IRA

We assist you in establishing a new self-directed IRA with Madison Trust Company, our preferred self-directed IRA Custodian.

2. Rollover

You direct the transfer of some, or all of your retirement funds from your existing IRA, 401K, or other retirement account to your new IRA. We guide you through this process, but never have access to your account or your funds.

3. IRA LLC

We establish a new Limited Liability Company (LLC) for your IRA – which will serve as your IRA’s self-directed investing platform. We customize each LLC to conform to all rules and regulations governing self-directed IRA LLC’s and appoint you as its manager, authorized to make all investment decisions.

4. Checking Account

Upon receiving your Broad Financial IRA LLC binder, you go to any bank of your choosing and open a checking account, in the name of the LLC.

5. Funding

The next step is to capitalize the LLC. You instruct Madison Trust Company to invest your IRA into the LLC – by trading all of the membership units (similar to stock) of the LLC for the cash in your IRA. Madison Trust Company will wire your retirement funds directly into your new checking account.Your self-directed IRA is then the owner of the LLC.

6. Investing

You can now purchase acceptable precious metals with your retirement funds – by simply writing a check (or sending a wire).

Can I take physical possession of gold in my IRA?

Yes, you can – and here is what you need to know:

ERISA (the Employee Retirement Income Security Act) was enacted by Congress in 1974 and in doing so it created the IRA as a means to encourage its taxpayers to save for retirement. According to ERISA, IRAs have always been allowed to invest in “traditional” assets (like stocks and bonds) as well as “alternative” assets (like real estate, privately held securities, cattle, lumber, etc.). Unlike “traditional” investments that are typically held by a brokerage firm, “alternative” investments are typically held by the IRA account-holder. The classic example of this is when an IRA purchases lumber (e.g. 2x4s, plywood, etc.), the IRA account-holder can take physical possession of the lumber, store it, touch it, and then sell it when he/she feels that the time is right. Instead of listing all of the asset classes that an IRA can invest in, Congress opted for the easier route of simply stating those few asset classes that an IRA cannot invest in. This can be found in Section 408(m) of the Internal Revenue Code:

• Section 408(m)(1) states that an IRA is prohibited from purchasing “collectibles”.
• Section 408(m)(2) defines what is considered a “collectible” and gives several examples including: artwork, antiques, stamps, rugs, and coins.
• Section 408(m)(3)(A) was added in 1988 and states that certain coins, such as gold, silver, and platinum American Eagle coins are exempt from the “collectibles” rule and can be held in an IRA. (It is important to note that this paragraph does not impose any restrictions on how or where these coins can be stored.)
• Section 408(m)(3)(B) was added in 1997 and exempts a broader range of precious metals such as certain gold, silver, platinum, and palladium bullion. However, to hold this bullion in your IRA, the Code requires that “such bullion is in the physical possession of a trustee” (which is defined as a bank, custodian, trust company, or the like).

Why do some people tell me that I can’t?

We’re not sure.

They must either be unfamiliar with the Code, or simply disingenuous. The Code is very clear, you can either google it yourself, or refer to Broad Financial’s 4-page PDF which contains all of the relevant portions of the Code.

Additionally, if those “people” quote you terms like the Tax Relief Act (which has no relevance to holding gold in an IRA), IRS loopholes, or a listing of the requirements to be a Trustee, they are headed in the wrong direction. Simply ask them to: a) punch holes in the above information, and b) provide you with chapter and verse stating that you can’t.

It’s that simple.

PRINTABLE APPLICATION HERE