Can I use Self-Directed Solo 401k to buy precious metals on ebay?

 

QUESTION: I’m looking to open Solo 401k and invest it in precious metals like gold. Can I buy precious metals on ebay with a Self-Directed Solo 401k since I would be the named trustee and the Solo 401k would allow for investing in precious metals?

ANSWER: I wouldn’t recommend purchasing precious metals on E-bay with your Self-Directed Solo 401k. Reason being the precious metals dealer must be certified by NYMEX/COMEX, NYSE/Liffe, LME, LBMA, LPPM, ISO 9000, or national government mint and meeting minimum fineness requirements, in order to be considered an allowable precious metals investment in a Solo 401k, often referred to as precious metals Solo 401k.  Reason being, specific quality and fineness requirements must be met in order to comply with IRC Section 408(m)(3)(A) and IRC 408(m)(3)(B).