Precious Metals Solo 401k, Solo 401k Precious Metals, Disallowed Precious Metals in Solo 401k

Precious Metals Solo 401k | Solo 401k Precious Metals | Disallowed Precious Metals in Solo 401k  

 Assuming you have proceeded to open Solo 401k with a Solo 401k provider whose Solo 401k document allows for investing in precious metals (e.g., gold, platinum, silver, and palladium) and names you as the trustee of the Solo 401k, you will be able to take physical possession of the coins but not the bullion (bars).

Allowable Precious Metals in Solo 401k

Often used to hedge against inflation, the following precious metals can be purchased with Solo 401k:

• Gold, Platinum, Silver and Palladium: as long fineness equals or exceeds the minimum fineness of 995 parts per 1,000.
• IRC Section 408(m)(3)(B) defines the bullion standard
• IRC Section 408(m)(3)(A) references allowable types of coins

Before proceeding to invest Solo 401k in precious metals, make sure you first understand which ones satisfy the quality requirements. A number of gold coins issued by governments worldwide meet the fineness standard; however, the following do not and are therefore disallowed: Belgian 20 Franc, British Britannia, Franc 20 French, Austrian 100, 20 and Corona. For a full list of disallowed precious metals visit DisallowedSolo 401k Precious Metals. If a Solo 401 invests in disallowed Precious metals, it will be deemed a prohibited investment and an immediate taxable distribution.

Storing the Solo 401k Precious Metals

As section 408(m) (3) indicates, precious Metals in bar form including gold, silver, platinum and palladium must be safe kept by a qualified trustee or custodian.

However, if Solo 401k trustee is the business owner, he or she has option of storing metal coins (not the gold bars, for example) in a safety deposit box. Full list of allowable coins can be found by visiting allowable coin investments.

Precious Metals Solo 401k is the same as a Solo 401k

So as long as the Solo 401k provider composes plan documents that specifically allow Solo 401k to invests/buys acceptable coins or bars, Precious Metals Solo 401k is the same as any other Solo 401k with respect to the solo 401k laws and distribution rules, for example. Lastly, precious metals are easy to value since their fair market value can be ascertained by reviewing the daily metal prices. This is important especially if you later decide to convert your Solo 401k to precious metals Roth Solo 401k, annual Form 5500-EZ reporting and when it’s time to commence making Solo 401k distributions.