I am not suggesting the IRA LLC is the bulletproof solution to government confiscation of retirement accounts. However, the LLC investment company does offer another layer of protection. If the government requires a percentage of accounts be invested in treasuries, for example, they may very well come after self-directed IRAs and require them to sell real estate, metals, or any other asset to fulfill the new bond investment obligation. If they come after these specific self-directed IRA LLCs, the individual has the choice to comply or to not comply. Non-compliance certainly has its ramifications, and I am not endorsing it, but choice is a powerful variable.
President Obama’s recent introduction of the new and improved retirement savings vehicle has many people up in arms. Some see this as a trial balloon– a test message by the administration to gauge public opinion. Perhaps it is. After all, full force retirement account bail in without catastrophe is not only improbable, rather impossible, without large-scale resistance. After caving to 2008 Hank Paulson threats of tanks in the streets, the populace, and dare I say, Congress, is not as apt to hand away those civil liberties.
The question is not if an ever-increasing bankrupt government will bail in retirement accounts; it is rather when. Some argue the lowest hanging fruit in the private pension industry are the government employee pensions. That is likely true. If so, the highest hanging fruit in the private pension industry would be self-directed IRAs, and furthermore IRA LLCs.
I liken this to an analogy of government confiscation of precious metals. Consider this: In the event of widespread PM confiscation, what will be the lowest hanging fruit versus the path of most resistance? I would argue the easy targets are vaults and depositories with registered and often certified holdings of PMs. Did you know the majority of IRA metal that is held by trustee is held in COMEX registered vaults? So here we have folks investing in traditional self-directed “Precious metals IRAs” to protect themselves and their savings, when in fact they are telling the regulatory bodies exactly what PMs they own and exactly where they are held.
Let’s not forget the Patriot Act changed the game as it pertains to the legalities of claim on holdings within banks, trustees, and depositories. You may think you, or your IRA, own that metal, but legally you do not, at least not in times of “national emergency.” Isn’t that when we are going to need our metals the most? That, my friends, is low-hanging fruit.
Now consider the path of most resistance– door-to-door PM confiscation. I believe that is about as likely as door-to-door gun confiscation. How many PM owners in our community are armed to the teeth? I imagine those door knocks would be met with stories of theft, loss, boating accidents, gambling, and drug addictions. The boys in government always prefer the path of least resistance.
The IRA LLC offers segregation and protection in numerous regards. It provides the ability to physically store gold and silver that is owned by your IRA, or like account. It also adds a layer of separation from banks, brokers, and thieves. You literally remove your assets from the commercial banking system. Take your retirement off grid. Protect yourself.
Click HERE to visit our Fact Library with tax code analysis and links. We link to Internal Revenue Code 408(m)(3)(A)which directly references the exempt coins. The language regarding trustee possession only applies to ‘bullion’ in 408(m)(3)(B) not ‘coins’ as referenced in Code 408(m)(3)(A).