Precious Metals Solo 401k Plan

Provided your Solo 401k Provider like has drafted Solo 401k document that allow for the purchase of precious metals and the type allowable under the IRS regulations, as trustee of your Solo 401k you will be able to direct the purchase of the precious metals (e.g., Gold, Silver, Coins, Bars, etc.).

Qualifying Precious Metals for Solo 401k

As long your Solo 401k or Individual 401k invests in allowable precious metal types and quality, precious metals may be a good Solo 401k investment especially for hedging against inflation. Precious metals such as Gold, Platinum, Silver and Palladium having fineness equal to or exceeding the minimum fineness of 995 parts per 1,000 are acceptable as Solo 401k investments.

While a number of gold bullion coins issued by governments worldwide satisfy the fineness standard, the following do not and are therefore disallowed: Belgian 20 Franc, British Britannia, Franc 20 French, Austrian 100, 20 and Corona. These are just some of the disallowed precious metals. For a full list, click on Disallowed Solo 401k Precious Metals. Precious metals not meeting these requirements are prohibited investments and cannot be held in Solo 401k or Individual 401k.

Taking Physical Possession and Storing Solo 401k Precious Metals

Precious Metals in bar form including gold, silver, platinum and palladium under the Solo 401k have to be stored with approved depository taking institution such as Delaware Depository Service Company. However, if the Solo 401k trustee is an individual, he or she may safe keep the metal coins for the benefit of the solo 401k at a local bank or credit union. See IRS Private Letter Ruling 200217059. For full list of allowable coins click on allowable coin investments.

Precious Metals Solo 401k is no Different from a Solo 401k

So as long as Solo 401k invests/buys acceptable coins or bars, Precious Metals Solo 401k is no different from any other Solo 401k. By reviewing the daily precious metals prices, the gold, for example, will be easy to value especially if you later decide to convert Solo 401k Gold to Roth Solo 401k Gold or begin to process in-kind taxable distributions of gold to yourself.

IRS Code Sections Regarding Coins and Bullion

Lastly, the following code section references allowable types of coins in a retirement account: Section 408(m)(3)(A) of the IRC (Internal Revenue Code). And following code section of the IRC defines the bullion standards: Section 408(m)(3)(B)

SOLO 401(K)