A private gold IRA is another term for private storage IRA, home storage IRA, checkbook IRA, and others. It is basically a self-directed IRA that allows you the option of investing in gold and storing it at home.
An IRA gives you an excellent chance to grow your retirement fund with tax-deferred status. Any investment and profit you make in your IRA are tax-free until you take distribution starting at age 59 1/2 (for voluntary distributions) or 70 1/2 (for mandatory distributions.)

The Taxpayer Relief Act of 1997 first allowed investments in physical gold, silver, and other precious metals in IRAs – an event that was welcomed by investors who want to put their money in gold to diversify their portfolio and hedge their assets.

Gold IRA

A Gold IRA is a self-directed IRA that allows investments in physical gold, silver, and other precious metals. This is the only IRA type that allows this kind of investment.

In a Gold IRA, you are required to store your gold assets only in IRS-approved storage facilities around the country. You cannot have your IRA gold assets in your possession, even for a short period. This could count as a distribution, which would mean losing the asset’s tax-deferred status, and being slapped with substantial fines.

Many investors, however, prefer to store their gold assets at home, or at a nearby facility that they can easily access in an emergency or crisis situation. For these investors, keeping their gold assets within reach means having better control over them. A private gold IRA gives them that opportunity.

How does a private gold IRA work?

Here are the steps in setting up a private gold IRA:

1. Open a self-directed IRA account with a trustee or custodian.
2. Set up a Limited Liability Company, or LLC, with you as the president or manager.
3. Sell the LLC’s membership interests to your IRA account. This transaction may be done in a self-directed IRA, which allows a wide range of investment types. This now moves your IRA money from your IRA account to your LLC.
4. You can then deposit your IRA funds, including your future IRA contributions, to your LLC’s checking account. As president/manager of the LLC, you now have checkbook control over your IRA funds.
5. The LLC may now purchase gold bullion, and have it delivered and stored anywhere you want, including your home. As the LLC is considered a separate entity, it technically owns the gold assets, not you, freeing you from the liability of an early distribution. You are simply an investor in the LLC.

Benefits of a Private Gold IRA

• You get the chance to store your gold assets at home, or any facility of your choosing.
• By having checkbook control over your IRA funds, you remove a layer in the investment process, giving you more flexibility in diversifying your portfolio.
• You save on fees that you would normally pay your IRA custodian for every investment you purchase.

Disadvantages of a Private Gold IRA

You can put a wide variety of investment types in your self-directed private gold IRA. However, there are also a number of “prohibited investments” to avoid. If you’re not careful, you could inadvertently engage in any of these prohibited investments and be liable for the consequences.
Furthermore, storing gold at home or outside IRS-approved facilities through a private gold IRA could be a violation of IRS rules. Before adopting this process, consult a lawyer and be informed about any legal ramifications.