Investor's Diversified Portfolio
If you currently have an IRA account or qualified plan, you can easily convert these funds into a Precious Metals IRA for safekeeping and peace of mind. A transfer or rollover is a penalty-free transaction and all capital gains within your IRA account are tax-deferred with low annual fees. For prudent investors seeking safety, flexibility and liquidity an historic opportunity is waiting for you, and the professionals at IDP can assist you with your current IRA needs by contacting us today. A Precious Metals IRA account allows you to fund your IRA with pure gold and silver bullion that is securely held in a fully insured institutional account that is managed by a leading custodial firm for IRA compliance. A Precious Metals IRA account is a strategic alternative, and IDP Consulting Group provides an exclusive exit strategy for clients to maximize capital gains and protect your principal and growth potential within your IRA account.
There are several good reasons for transferring all, or a portion, of your retirement funds into a Precious Metals IRA, and chief among them is the low-risk correlation to capital markets and the advantage of tax-free capital gains for your retirement nest egg. According to the Investment Company Institute, there is approximately $17 trillion in annuities, 401(k) and government retirement funds with an additional $7.5 trillion in traditional IRA accounts, for a total of $24.5 trillion. It is estimated that less than 2% of this amount is allocated in gold and silver, and this is mostly in paper ETFs, mutual funds and mining shares. According to the Asset Allocation Survey by the US Council of Institutional Investors, there is less than 1% allocated in the commodities complex by pension funds in America that manage a staggering total of $50 trillion in retirement funds! This is why you need to adopt a contrarian investment strategy for wealth preservation and growth in these increasingly volatile and uncertain times.
A Precious Metals IRA offers a convenient and profitable alternative for traditional IRAs and qualified plans that can be invested in tangible assets like gold and silver for a solid foundation. A Precious Metals IRA is a “self-directed” investment in which you have complete control to manage or redirect the assets in your IRA account. Unlike traditional paper-asset based IRA strategies which are under the direction of nameless, faceless fund managers you have full knowledge and control of your IRA account. Precious metals are also easy to track on a regular basis, and you are assisted in selecting the authorized metals to place into your IRA account for safekeeping, like the coins and bars featured on this website. Most employer pension and profit sharing plans, TSA, 401(k), 403(b), 457(b), SEP 408(k), SIMPLE IRA 408(p), Keogh, ROTH, and traditional IRA accounts can be converted to a Precious Metals IRA.
We are often asked about the use of a Checkbook IRA-LLC to take physical possession of precious metals and the threat of our government “confiscating” IRA funds. These are valid questions and we think that the fear of a government seizure of retirement accounts is grossly exaggerated for several reasons. If Congress needs funding they simply use the Fed to monetize more debt as we have been doing for years. With 63 million Americans investing in IRA and 401(k) accounts the political consequences of a “seizure” would be more devastating than defaulting on Social Security payments, which is far more likely to occur. “And there’s absolutely no doubt they’d make their displeasure known in the streets and halls of Congress,” says consumer advocate Mark Nestmann. In short, it would be political suicide. Further, any proposed changes with retirement laws and regulations would take months, if not years, to implement (like Obamacare) and would be as complex as the ERISA Act of 1974. Finally, the notion of nationalizing private retirement funds in the US would send a clear message to the world that we are acting like a Third World nation and our bond market would collapse. Argentina, Hungary, Bulgaria, Poland, Ireland, Spain and Greece have “borrowed” from their state pensions, but this is not the same as IRA accounts. We invite you to download our Special Report (left sidebar) Investing in Precious Metals, Physical Storage & IRA Accounts that has remarks from Mark Nestmann and how gold dealers exploit this fear of gold and IRA confiscation to help promote their business. Because Precious Metals IRA accounts are “self-directed” they can be quickly transferred, liquidated or even shipped to clients, and we are always watching for any developments on behalf of our clients.
The concept of a Checkbook IRA-LLC is relatively new and has tremendous appeal to investors, but we are not convinced. The structure of a Checkbook IRA-LLC is for an IRA account holder to create a Limited Liability Company (LLC) that can be owned by the IRA. IRA assets are transferred to the LLC and the manager (former IRA account holder) can write checks from the LLC to purchase precious metals that are then delivered to the LLC/manager. The problem arises with prohibited transactions, self-dealing and disqualified persons as defined by the IRS Code, Sections 4975(c)(1)(D-E). A broad reading of the code says any “direct or indirect furnishing of services between a plan and a disqualified person is prohibited.” All investments for the Checkbook IRA-LLC must be for the IRA and the owner or his family should not benefit at all from these investments. To trigger a self-dealing transaction, the IRS merely shows that a disqualified person received some personal benefit (namely the precious metals). If the account holder or beneficiary engaged in a prohibited transaction the IRS forces a full IRA distribution that involves penalties and tax on earned income. “The chances of getting caught in a prohibited transaction are increasing,” warns Mark Nestmann. “Impending changes to IRS reporting forms for IRAs will require LLCs, such as those used in Checkbook IRAs, to be specifically identified.” Indeed they will and he adds that since custodians don’t need to approve the transaction “the risk of such a mistake skyrockets with Checkbook IRAs.”
Promoters will always cite the Swanson court case in 1996 as their legal grounds for a Checkbook IRA using an LLC. This involved a business with two LLCs that used a ROTH IRA to avoid a million dollars in tax. The case was upheld, but as noted in a recent report the IRS is trying to pass legislation to prevent this and “the Checkbook IRA structures will eventually be officially declared illegal by the IRS.” One promoter cautions, “One of the lessons learned from the Swanson case was the LLC must [be] formed in a particular way and contain very specific language that meets all IRA codes and requirements. Once formed you as [the] manager must see to it that all rules are strictly followed. If the LLC is improperly drafted, the entire LLC IRA may be disqualified and taxes and penalties would be assessed.” Another promoter lists “the drawbacks” of these structures and cites the complexity, cost, different interpretations of the law and keeping track of all the rules. “Yes, the Checkbook IRA is flying high today,” says Jeffrey Desich, CEO of Equity Trust Company, “but the IRS knows exactly what is going on, although it is very slow to react. Someday down the road it will start challenging all checkbook IRA structures. The IRS considers the checkbook IRA to be one of its top targeted scams.” It is for this reason that Equity Institutional will not administer these accounts, and we also feel it is not worth the risk. We try to do our due diligence for our clients at IDP.
As a regulatory disclaimer, the information and recommendations contained herein by IDP Consulting Group, LLC are provided for informational purposes only and shall not be considered an offer or solicitation to buy or sell securities or offer legal/tax advice. IDP Consulting Group, LLC makes no warranties or guarantees as to the accuracy of this information and prospective clients are encouraged to obtain counsel from their legal and tax professionals who are licensed in their respective fields. We invite you to contact our office for more details and a no-obligation consultation regarding the opportunity to protect wealth with a Precious Metals IRA account. We have combined experience of over 50 years in this industry and look forward to serving you, and also invite you to share this information with a friend or family member.
IDP Consulting Group, LLC uses the custodial services of Equity Institutional, a division of Equity Trust Company, located in Westlake, Ohio. Your Precious Metals IRA account is professionally administered by this third-party trust company, and they are fully licensed and regulated by federal and state agencies. Equity Trust Company is the nation’s leading provider of self-directed IRA and 401(k) accounts with over 130,000 clients and $12 billion of retirement plan assets under administration. To open a Precious Metals IRA account with Equity Institutional there is a one-time establishment fee of $50, and an annual custodial fee of $80 that is billed each January. Every account holder has easy online access to their account, and a comprehensive quarterly statement is provided to each account holder by email. The process to establish a new account is very simple and does not incur any penalties or taxes when you transfer or rollover funds from your existing custodian. A rollover is when you request a check from your current account administrator that can be made out to either you or Equity Trust Company, and you have 60 days to complete this transaction. You are limited to one rollover per year. You will receive a 1099-R the following January, but the IRS recognizes this rollover when the new custodial firm issues a Form 5498 on your behalf. To avoid this reportable event a transfer form (letter of acceptance) can be sent to your existing custodian to transfer funds directly to Equity Institutional. This is the more preferred method and there is no limit on annual IRA transfers. The first step is to download the necessary forms below and an IDP representative will be glad to assist you.
1. Download new account and transfer form
2. Fax or scan forms to Equity Institutional
3. Funds are transferred from your custodian
4. Precious metals are secured in your account
As indicated, Precious Metals IRA account forms can be sent to Equity Institutional and you must include a recent IRA statement from your current custodian. The account transfer form must be signed with your original signature, and the process takes about two weeks to secure the metals into your Equity Institutional IRA account. All fees are deducted from this original transfer including a nominal storage fee for the depository. Annual contributions to a traditional or ROTH IRA are $5,500, or $6,500 if you are over 50 years old, and the deadline is April 15th of the following year. Annual contributions for a ROTH IRA are limited if your Modified Adjusted Gross Income (MAGI) is more than $116,000. Maximum contributions for a SIMPLE IRA is $12,500 and up to $53,000 for a SEP IRA. Due to fees and maintenance, we not recommend a Precious Metals IRA if your current account is less than $10,000. To get started you can download the New Account and Transfer Forms below and contact an IDP representative to help properly fill out these forms for your new account.
If you have a 401(k) plan with your current employer, you may be able to invest in non-traditional assets like precious metals if your current plan will allow an outside custodial firm to act as an extension of your 401(k) plan. If your Third Party Administrator (TPA) does allow this extension, Equity Institutional can be assigned as a non-discretionary agent to administer a Custody Account on your behalf. This decision is based entirely on your employer’s TPA and their administrative guidelines and we can provide you with a Custodial Account Agreement for this purpose. Annual fees for this 401(k) Custody Account include a one-time establishment fee of $250, a minimum custodial fee of $250, or .0015% of account value (more than $167,000) and a $150 annual storage fee for the depository. Equity Institutional can also administer a SOLO 401(k) if you are a self-employed business owner that receives an annual salary (not commissions). This includes both incorporated and unincorporated businesses, sole proprietorships, partnerships and corporations. Total employee salary-deferral contributions are $18,000, and the profit-sharing contribution limit is 25% of annual salary for a maximum of $51,000, or $56,000 if over 50 years old. The deadline for establishing a SOLO 401(k) is December 31st to apply earnings from that calendar year. The main benefits for a SOLO 401(k) is larger tax-deferred capital gains and avoiding the complexity of the Employee Retirement Income Security Act of 1974 (ERISA). If you have more questions regarding 401(k) accounts please contact your IDP representative.
IRA Distributions & Exit Strategy
We assist all clients with ordinary IRA distributions, and an important consideration for account holders is when to sell the assets in their Precious Metals IRA account and retain the advantages of a tax-deferred IRA. As an exclusive service for all Precious Metals IRAs managed by IDP, we offer a strategic alliance with Meixler Investment Management, Ltd to migrate, rollover or transfer accounts when market timing and/or conditions deem necessary, to maximize capital gains and protect the principal within your IRA. This further distinguishes IDP from online gold dealers, TV ads and telemarketers that are only interested in getting you through the door and after that you are pretty much on your own. We are not here to merely take bullion orders, but are committed to assisting our clients through the entire process of a Precious Metals IRA account as we closely monitor macroeconomic and financial trends.
Meixler Investment Management Ltd. is an independent SEC Registered Investment Advisory firm that specializes in growth and retirement income portfolios for discerning individuals, families and closely-held businesses. As a fee-based management service, they focus on customized accounts for each client that are consistent with individual financial goals based on their deep analytical research and a “value investment” approach to achieve growth and income while protecting investor’s principal. Their goal is to build wealth over the long-term while managing downside risk in volatile markets by anticipating market trends and allowing large margins of safety for their clients. Meixler Investment Management uses the broker-dealer services of Charles Schwab & Co., and the following forms are provided if you would like to diversify with their firm, or later transfer your IRA account.
Mike Meixler has been serving a discriminating nationwide client base for almost 25 years, and their firm would be glad to assist you with your personal investment or future retirement needs. Mike is a long-time student of classical free market thinkers like Ludwig von Mises, Carl Menger, Friedrich Hayek, Murray Rothbard and other luminaries that comprise the Austrian School of Economics that is based on individualism and sound money. In 2009, Mike was recognized in Barron’s annual list of Top 1,000 Advisers and was ranked 24th in Arizona, the 16th largest state in the US. These top 1,000 advisers represent the elite 1% of all advisers in our nation. If you would like to arrange a confidential consultation with Mike Meixler you can call 1-866-537-4044, and his staff would be glad to assist you with estate planning.
Equity Trust Company & Equity Institutional
Delaware Depository Service Company
IRA account holders can liquidate their Precious Metals IRA accounts and receive a partial or full cash distribution, transfer these funds to another IRA account, or take physical possession of their precious metals (shipping fees and taxes are applicable). All distributions, or deliveries, prior to 59½ years old incur early withdrawal penalties, and all IRA distributions are taxed as ordinary income for that calendar year. The appreciation of precious metals in your Precious Metals IRA account is not subject to an ordinary capital gains tax, or potential windfall profit tax by the IRS, because you have a qualified tax-deferred IRA account. In most states, IRA accounts are also protected from judgments and creditors depending on personal circumstances. This is the strategic investment alternative for a Precious Metals IRA account that offers liquidity, flexibility, safety and peace of mind. If you have a ROTH IRA you can withdraw after-tax contributions, but you can only take qualified distributions after a five-year period to avoid a 10% withdrawal penalty. You can withdraw funds prior to reaching 59½ without penalties if you have a severe disability, a first time home purchase or death disbursement, but the five-year rule still must be met. Account holders must take a Required Minimum Distribution (RMD) starting at 70½ years old, and this is calculated by Equity Institutional based on the Uniform Life Table. ROTH IRAs are exempt from RMD because taxes have already been paid in previous years. The deadline for taking an annual RMD is December 31st and is taxed as ordinary income. Notification of RMD is sent to account holders in January in order to comply with IRS regulations.
A Strategic Alternative for Investors
Concluding Remarks & Regulatory Disclaimer
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