IRS CODE 408M Explained in Plain English

The concept herein is pertinent to benefit you in case you find it compelling enough to create a precious metal IRA. Please find herewith enclosed below: kindly view a general letter sent out by a leading Precious Metals IRA custodian. The custodian sent a letter out to its client database list a few years ago. The same law applies today, The Managing director, outlines in plain English the tax policy of metals in a precious metal IRA. Precious metals are declared at the potential melt value and that can save you up to 50% against the transactional sales price and sometimes more in some cases on actual taxation due from an RMD or an IRA withdrawal. I would be happy to answer any questions that you and/or your Tax Professional may have regarding this subject. It’s something that you can still utilize to save on taxes. The present law would definitely make this the appropriate time to make a precious metals IRA happen.

Here is the letter explaining the 408M TAX CODE:

Dear Client,
I am outlining the IRA reporting requirements for IRAs and IRA owned physical metal. Per IRC 408(m), IRAs may hold physical gold, silver, platinum and palladium. The market value of the metal is reported based on the market’s melt value of the particular metal. No collectible value may be reported, as IRAs may not hold collectibles. Physical distributions of precious metals from an IRA are reported on form 1099R at the melt value of the metal on the day the distribution is requested.

408(m)(3) Exception for certain coins and bullion. For purposes of this subsection, the term ‘collectible’ shall not include

408(m)(3)(A) any coin which is-

408(m)(3)(A)(i) a gold or silver or platinum coin described in paragraph (7), (8), (9), or (10) of section 5112(a) of title 31, United States Code,

4080(m)(3)(B) any gold, silver, platinum, or palladium bullion of a fineness equal to or exceeding the minimum fineness that a contract market (a described in section 7 of the Commodity Exchange Act, 7 USC 7) requires for metals which may be delivered in satisfaction of a regulated futures contract, if such bullion is in the physical possession of a trustee described under subsection (a) of this section.

Please feel free to contact me with any questions you may have.
Thank you,
Managing Director

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