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Total penalties to withdraw hard assets from IRA after losses?

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SomeJunk

Junior Member
What is the name of your state (only U.S. law)? Texas

I took a portion of my IRA and put it into silver coin (minted) about 3 years ago. Since then silver has lost about half of its value. I'm wondering what my penalty would be to take physical possession of the coin given the loss? The yearly vault fees might make this a worthwhile move in the long run.

Thanks,
J
 


justalayman

Senior Member
Your penalty is based on the amount you withdrew and was due the when filing tax returns for that year. The money was sheltered due to being in an IRA. Once remove it lost the tax shelter.
 

LdiJ

Senior Member
What is the name of your state (only U.S. law)? Texas

I took a portion of my IRA and put it into silver coin (minted) about 3 years ago. Since then silver has lost about half of its value. I'm wondering what my penalty would be to take physical possession of the coin given the loss? The yearly vault fees might make this a worthwhile move in the long run.

Thanks,
J
Did you take a distribution to put the money into silver coin or did you simply direct the IRA administrator to put some of it into silver coin?

If you took a distribution to buy the silver coin then you are going to end up with a capital loss since the coin is worth less than when you purchased it.

If you simply directed the IRA administrator to buy the coin as part of your IRA then it would be possible to direct the IRA administrator to take the money out of silver coin, but I am having trouble seeing a mechanism for taking the coin into your possession. Maybe someone else is aware of one.
 

SomeJunk

Junior Member
Did you take a distribution to put the money into silver coin or did you simply direct the IRA administrator to put some of it into silver coin?
Not 100% sure, but I know that the option was to go with bullion or minted coin; I chose minted coin since he said that when it came time to removing the silver from the IRA, I'd have to have it minted first. For some reason I wouldn't be able to take possession of raw bullion.
 

LdiJ

Senior Member
Not 100% sure, but I know that the option was to go with bullion or minted coin; I chose minted coin since he said that when it came time to removing the silver from the IRA, I'd have to have it minted first. For some reason I wouldn't be able to take possession of raw bullion.
Then you are going to have to find out the answer to that. It matters.
 

SomeJunk

Junior Member
Ok, so I directed the IRA administrator to put some of it into silver coin; I don't actually have possession, the coins are in a vault out of state.

So I guess the number I'm after is the tax liability given that I've suffered about a 50% loss in value since the coins were added to my IRA, were I to withdraw the actual coins from the IRA.
 

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