ProtectGuide. Home Delivery Gold & Silver IRA. Ultimate Control Over Your Retirement

Transcription

1 ProtectGuide Home Delivery Gold & Silver IRA Ultimate Control Over Your Retirement

2 Augusta Home Delivery IRA Priceless Control over Your Retirement Savings This little-known retirement account is comprised of physical gold and silver coins delivered to your home where you can See, Touch & Hold them and store them yourself. It s important to consult with your personal legal, tax and investment advisors before opening an account, so you fully understand the risks.* Augusta can walk you easily through the steps of setting up a physical precious metals IRA account and show you which metals are available to buy. We ll make your gold and silver investing experience easy and personal. How Gold and Silver Protect Your Future It s not easy to watch the market have its way with your hard-earned money. Stocks and bonds are at the mercy of world events and political whims, and managed funds are controlled by people you don t know. The Great Recession proved no investment is guaranteed. What can you do? The secret to protecting retirement investments in this uncertain environment is to find effective diversification. You can t get better diversification away from paper-based investments than physical gold and silver in a completely different investment class. Gold and silver in their physical form offer a genuine store of value, unlike investments based on fiat currencies. They tend to hold their value or increase when other investments are decreasing, so an investment in at least some precious metals provides insurance for your investments and an enduring financial legacy for your loved ones. The Augusta Precious Metals Promise Your personally assigned Augusta team will take time to answer all your questions, then help you become familiar with the precious metals available, so you can decide what to buy. Finally, our Customer Care Department will guide you through a proven streamlined, inexpensive process for setting up your account. We do 95% of the legwork for you, including communicating with account custodians. Take control of your retirement savings TODAY! Ask to speak to a friendly, knowledgeable Augusta account executive. 2 Product Summary Inflation-hedging physical gold and silver coins Precious metals delivered to you and stored by you True, uncorrelated diversification and store of value Enduring, intrinsic value to support your financial goals Free shipping and insurance Expert perspective and personal service Best prices in the industry, no hidden fees Roll over part of your existing IRA, 401(k) or other retirement account to keep your retirement money safe AND get all of the Augusta Home Delivery IRA s unique advantages.

3 7 Easy Steps How an Augusta Home Delivery IRA Works The Augusta Home Delivery IRA is a self-directed IRA as defined in U.S. tax code. The coins in this physical gold and silver IRA are held in an LLC. (See more details in the following pages and Internal Revenue Code Section 408, particularly 408(m) regarding precious metals.) Contact Augusta We assign a personal account executive to follow you through the process. This person helps you fill out an application to open a new selfdirected IRA with a new custodian and prepare to transfer funds. Transfer Funds At your direction, your new custodian requests a rollover of your retirement funds from the current custodian of your IRA, 401(k), 404(b), SEP IRA or Keogh plan. The transfer is tax-free and penalty-free. Create LLC Augusta s recommended attorney creates a Limited Liability Company (LLC) for your new self-directed IRA and appoints you sole manager. The LLC conforms to all rules and regulations for self-directed IRA LLCs. Purchase LLC You sign documents to instruct your new self-directed IRA to purchase the LLC. The new self-directed IRA owns the LLC. Open Checking Account You open a checking account in the name of your LLC at your preferred, qualified bank. Your new custodian wires funds into your new LLC checking account in the amount you designate. Existing IRA / 401k IRA LLC Checking Account 6 7 Buy Gold & Silver You use your LLC s checking account to buy gold and silver. Your personal Augusta team helps you build your precious metals portfolio. Take Delivery Precious metals are delivered to you, and you decide where to store them. There is a great deal of misinformation about this product in the marketplace. Ask your Augusta expert to help you uncover the facts! 3

4 Getting to Know the Augusta Home Delivery IRA Many Augusta clients have carefully vetted the home delivery precious metals IRA with their own attorneys, and it s important to consult with your own advisors before opening an account. Other than storage, this account is much like other self-directed IRAs and IRA LLCs containing real estate and other unconventional assets. See what Augusta customers think by clicking on the Reviews tab on the home page at Augustapreciousmetals.com. You ll see many customers give us 5-star reviews the highest possible! Investment Profile: Augusta Home Delivery IRA* Asset description Account type Legal structure Funding Min/max investment Storage requirements Accessibility/liquidity Costs/fees Physical gold and silver coins preselected by Augusta for their usefulness to investors; IRS-approved coins include American Gold Eagles and American Silver Eagles (1 oz, ½ oz, ¼ oz and 1/10 oz), as well as certain coins minted by other nations Self-directed IRA, defined by tax code and governed by IRS rules; same tax benefits and penalties as other retirement accounts Augusta team helps you set up an LLC owned by your IRA; must follow IRS rules and U.S. tax code on setup/terms of the IRA and on storing where a custodian maintains physical possession Purchase using funds from your LLC bank account $25,000 minimum, no maximum limit You decide where to store your precious metals; it s important to consult with your own legal, tax and investment advisors before opening a home delivery account, so you are informed about potential risk* Gold and silver stored at home or in a safe deposit box is always close at hand; as with any IRA, early withdrawal can result in additional taxes and penalties No hidden Augusta management fees or setup fees; see fee sheet for breakdown of custodial and LLC fees * For more FAQs about the Augusta Home Delivery IRA, visit Augustapreciousmetals.com. 4

5 Is This a Common Investment Account? Sophisticated investors have used self-directed IRAs for a very long time for real estate and physical precious metals. Until recently, the home delivery account has been relatively uncommon. We believe this is because it has taken time for investors to realize it s an option. Augusta began selling self-directed IRAs specifically to help Americans benefit from this important opportunity. The Future of Home Delivery Gold and Silver IRAs More providers are offering home delivery gold and silver IRAs, and we believe this option will soon enter the mainstream. This type of IRA can be an important tool for certain investors who want the strategic portfolio benefits offered by physical precious metals and greater asset control they can t get with traditional retirement plan structures. Where to Store Your Gold and Silver Your home delivery gold IRA will own a Limited Liability Company (LLC) you create for your self-directed IRA a legal investment structure specifically acknowledged as valid by the Internal Revenue Service (IRS) and tested in court. You must work with a custodian that specializes in administering self-directed IRAs to roll over funds and accept the precious metals into the account. Investors have two choices for storage of physical precious metals in a home delivery gold or silver IRA: Home storage. Keep American Eagle gold and silver coins in your home. It s important to consult with your own legal, tax and investment advisors to understand the risks, do what you can to comply, and preserve your tax advantages. Sidestepping rules or mishandling account assets could result in penalties and taxes. Safe deposit box storage. Take delivery of precious metals at your door, then transfer to a trustee of your choice usually a bank. As with home storage, it s important to consult with your own advisors to understand the risks, comply with the tax code, and preserve tax advantages. 5

6 The Augusta Advantage Augusta Home Delivery IRA VS Conventional Retirement Accounts Defer income taxes on income and growth until retirement. Defer income taxes on income and growth until retirement. Make qualified early withdrawals. Make qualified early withdrawals. Make direct IRA contributions. Make direct IRA contributions. Roll over a traditional IRA, Roth IRA, 401(k), 403(b), SEP IRA or Keogh into your new gold or silver IRA. Invest in various paper assets, such as stocks and bonds Manage your own IRA. Buy and sell using your IRA LLC checking account. Authorize faceless experts to manage your savings. Cut fees to a minimum. Pay recurring fees, such as professional management and advisory fees. Buy coins and bullion at competitive market prices, with no hidden fees. Pay transaction fees for most fund investment changes. Own physical, inflation-hedging gold and silver. Claim digital shares in pre-selected stock, bond and other mutual funds. Physical gold and silver is delivered to you, and you decide where to store it. Yield to unknown honesty and liquidity of a trustee. Own investments with intrinsic value, usually resistant to inflation and market meltdown. Lock into investments vulnerable to inflation and market meltdown. Hold real metals with enduring value in a worst-case social/political crisis. Rely on paper investments that could be worthless in a worst-case social/political crisis. 6

7 Augusta Precious Metals: Home Delivery IRA Pioneers Augusta is known for bringing home delivery gold IRAs into the mainstream, making them available to anyone who wants to take advantage of the strategic portfolio benefits associated with owning precious metals, while retaining the highest possible level of asset control. This brochure just one of many educational pieces offered by Augusta was created to help teach investors about the benefits of owning gold and silver and the unique IRA account options available to them. Your Partner in Retirement Savings Protection The family behind Augusta has been in the gold and silver business for more than 40 years. Our knowledgeable, friendly account executives will listen to your needs and help you learn what precious metals are available, so you can decide what to buy. Augusta s process department does 95% of the legwork to complete your purchase, communicate with your custodian, send your metals to you or a secure depository of your choice, and help you with distributions. Would you like to store your gold and silver in a more customary location? Ask about the Augusta Gold & Silver IRA and get your gold and silver delivered to a secure depository of your choice, where you can make arrangements to go see, touch and hold it in your hands. Or consider a cash purchase and store precious metals anywhere you like. Augusta customers have expressed their satisfaction with our service by providing hundreds of five-star reviews. We also are proud of our BBB A+ rating and AAA rating from the Business Consumer Alliance. Call today and let us help you protect your savings! 7

8 On the Legality of Home Delivery IRAs Self-directed IRAs were long ago tested and confirmed as valid investments under the law. Below is an introduction to the pivotal court case and IRS memos that apply. Legal History of Self-Directed IRAs 1996 Swanson vs. Commissioner (106 TC 76) James Swanson created a special-purpose business entity owned by his IRA. He made himself the non-compensated manager of this business entity, allowing himself full investment control. In other words, his structure mirrored that of the IRA LLC discussed above. The IRS challenged Swanson, claiming that using a special-purpose entity to manage his own IRA was a prohibited transaction. The judge found for Swanson (see 106 TC 76 for details). Investing in a self-directed IRA through a newly created entity has been recognized ever since IRS Issues Field Service Advice (FSA) Memorandum The IRS educated its agents about the legality of self-directed IRA LLCs via FSA In essence, the memo reiterated the Tax Court s finding in the 1996 Swanson case that an individual can use his or her self-directed IRA to purchase all the shares in his or her newly formed LLC without self-dealing TC Memo Reaffirms Self-Directed IRA LLC Legality After retirement, Terry Ellis rolled over $300,000 from his 401(k) into a self-directed IRA. He then established an LLC, CST LLC, and transferred the $300,000 from the IRA to purchase CST LLC. He used the CST LLC entity as the legal owner of a used car business. The IRS argued that this violated Section 4975 of the tax code, which prohibits self-dealing. The court s decision in TC Memo confirmed that a self-directed IRA can fund a newly established LLC to buy and sell assets. The IRS informed its agents of this fact in a Field Service Advice (FSA) memorandum shortly after. Selfdirected IRA LLCs are, therefore, recognized by the Tax Court and the IRS as legal It appears no clear IRS guidance has been provided specifically as to where precious metals in a selfdirected physical gold or silver IRA must be stored. However, Augusta asked eight attorneys to analyze the use of precious metals in a self-directed IRA and storage at home or in a safe deposit box. They all came to the same conclusion: it s legal for certain coins, if IRS rules are followed. See details at right. Can we expect IRS clarification? One of Augusta s contracted attorneys, Dawn Delia, contacted the U.S. Internal Revenue Service many times about storage of this product. She was told the IRS recognizes the issue and would be providing guidance. After the presidential election, however, the timing of such guidance became uncertain. Ask your Augusta account executive about the possible outcomes of future IRS guidance on this issue. 8

9 Eight Attorney Opinions We asked eight attorneys to examine the home delivery gold/silver IRA and write opinion letters about it. All eight completed extensive research on the account structure and wrote opinion letters outlining the reasons it s legal as long as the rules are followed. See excerpts below, and read all eight complete response letters at Augustapreciousmetals.com. Important note: You cannot rely on these opinion letters as legal advice. It s important to consult with your own legal, tax and investment advisors before opening an Augusta home delivery IRA account. IRS approved coins under I.R.C. 408(m)(3)(A) may be stored at home. Precious metals and certain coins under I.R.C. 408(m)(3)(B) may not be stored at home and must be stored in a depository, bank safe deposit box or with an IRA custodian. Dawn Delia, Delia Law (affiliated with Augusta we recommend this attorney to create your LLC) In contrast to the strict storage requirements for approved precious metals set forth in 26 U.S.C. 408(m)(3)(B), 26 U.S.C. 408(m)(3)(A) omits any such storage restrictions for American Eagle Coins, presumably permitting them to be stored in the physical possession of the self-directed IRA ( SDIRA ) account owner, provided the coins are being held solely for the benefit of the SDIRA and not for any personal benefit or other benefit. Gordon Law Group It is therefore my opinion that where a corporation or LLC established under Swanson holds I.R.C. 408(m)(3)(A) coins (including American Eagle coins) in any location (including with a trustee), the IRA account holding the shares or membership interests thereof would be respected as a valid IRA, assuming all other formalities are met. Cyrus Sanai, Attorney at Law Coins approved under the Internal Revenue Code (section 408(m)), namely American Eagles, can be stored at home, provided they are not used in prohibited transactions, and should be held in the name of the IRA LLC. Christopher B. Johnson, Attorney at Law (Mr. Johnson was previously affiliated with Augusta and wrote an article about this product for Law360.com.) Is the Home Delivery IRA Right for You? Only you can decide if this retirement investment option is right for you and your personal savings goals. Consult with your own advisors to understand the risks and determine if you can comply with the tax code. 9

10 Augusta Home Delivery IRA FAQ Can I store my IRA precious metals at home? Attorneys retained by Augusta (see Attorney Opinion Letters at Augustapreciousmetals.com) have told us certain precious metals, namely American Eagle coins, may be stored at home in accordance with the Internal Revenue Code (26 U.S.C. 408(m)(3)(A)). However, before opening an Augusta home delivery account, it s important to seek advice from your own personal advisors, so you understand the risks as they apply to your own financial situation. Sidestepping IRS rules or mishandling the precious metals in a home delivery account could result in taxes and penalties. Some Augusta customers have vetted this investment with their own advisors and, in spite of the risks, have decided to store IRSapproved American Eagle coins at home. Can I store my IRA precious metals in a bank safe deposit box? Attorneys retained by Augusta (see Attorney Opinion Letters at Augustapreciousmetals.com) said all precious metals held within an IRA may be stored in a bank safe deposit box in the name of the LLC because, in their opinion, such storage meets the code requirement that the precious metals be stored in the physical possession of a trustee. It appears the IRS has not issued clear guidance on whether bank safe deposit box storage would meet the requirement that the precious metals be stored in the physical possession of a trustee, so it is important that you fully understand the requirements and risks associated with this type of storage. Because you cannot rely on the opinions of Augusta s attorneys, it is very important that you seek your own legal advice on this matter. 10

11 What are possible outcomes if the IRS issues guidance on this type of IRA and storage options? According to attorneys Augusta consulted, the following are the likeliest outcomes: 1) the IRS might confirm home and safe deposit box storage complies with the tax code; 2) the IRS might say safe deposit box storage is legal, but home storage is not, requiring clients to move all IRA precious metals into a safe deposit box; 3) the IRS might say neither home nor safe deposit box storage are in compliance, and clients might have to work with custodians to move precious metals to a depository. The IRS could possibly grandfather in existing clients, meaning the clients would not have to pay taxes or penalties. Or they could deem that home delivery investors must pay taxes and penalties. What, exactly, are the risks? In addition to the risk of future IRS clarification, our attorneys say owners can create risks if: 1) the precious metals are not stored properly; 2) IRA precious metals are used for any other purpose, including being sold to purchase something else; 3) the IRA is not administered through a qualified custodian; or 4) the LLC is not set up correctly. Mishandling the account, including physical assets, could constitute a prohibited transaction, and the owner could lose tax benefits and face significant taxes and penalties. Why are some investors reluctant to take advantage of the flexibility offered by a home delivery IRA? We believe hesitation to invest in a home delivery IRA, for some investors, stems from these facts: 1) the product hasn t been in the mainstream until recently, although self-directed IRA LLCs, or similar structures, have been used by investors for 20 years; 2) the IRS hasn t given specific, clear guidance on storage at home or in a safe deposit box; and 3) no court cases yet confirm storage of physical gold or silver in an IRA at home or in a safe deposit box. Although some providers argue that home and safe deposit box storage are illegal, we don t expect IRS guidance on storage any time soon. The LLC structure and holding of certain precious metals in an IRA is not disputed. How can I be sure my investment complies with the law? Augusta Precious Metals recommends all customers work with appropriate legal, tax and investment advisors to ensure they are acting in full compliance with the law, including the matter of asset storage. Legality of the LLC structure at the foundation of the home delivery IRA has been confirmed according to the IRS. The LLC structure was challenged in court and found to comply with the tax code. Why do investors like this type of investment? Investing in physical gold and silver is a way to broaden investment selection and gain more control than with other retirement plan structures. Gold and silver offer effective uncorrelated asset diversification outside of traditional stocks, bonds and mutual funds. The value of gold and silver tends to go up when other investments are going down. Precious metals are reliable stores of value that have a tendency to hold their own or appreciate during adverse economic conditions. 11

12 Exceeded my expectations Augusta has exceeded my expectations immensely. Not only do they have the best prices, but they have the ability to provide me with various options for precious metals in my portfolio. I went with the home storage gold. It simply made the most sense, holding my IRA personally and having control over it at all times. S. Solouki Helpful first experience This was my first experience buying silver. The person who helped me was very professional. I would recommend Augusta Precious Metals and especially the person that was so helpful to me. Gail C. Outstanding Service and Support They strive to provide the best deals, honest answers, and treat you like more than just an account. They treat you like a long-term friend and client with your best interest first. Thanks all the great staff at Augusta Precious Metals. Bart A. Augusta Home Delivery IRA Investment Protection Worth Its Weight in Gold and Silver The Augusta Home Delivery IRA allows you to have gold and silver delivered to you. Use these hard assets to gain more control over your savings. Augusta is a precious metals provider known for deep precious metals experience, exceptional and transparent customer service, and the lowest prices in the industry. Call today to speak to your personal Augusta account executive *Any opinions or advice offered by Augusta or through its attorneys regarding legal, tax, or investment issues are Augusta s opinions and not to be relied on by anyone for any purpose. Augusta s content may contain errors and you should not base investment decisions solely on the content Augusta provides. The Augusta Depository Gold IRA (or silver) is a self-directed IRA containing physical precious metals delivered to a secure non-government depository storage facility and administered by a third-party custodian. Investors can make an appointment to see their metals at the depository, which could be far from investors homes. The Augusta Home Delivery Gold IRA (or silver) is a self-directed physical precious metals IRA delivered to investors homes. Some choose to store IRSapproved American Eagle coins in an IRA in their homes. Others choose to store homedelivered metals in a safe deposit box at a U.S. bank. Before purchasing from Augusta and deciding where to store precious metals in an Augusta IRA account, investors should seek guidance solely from their own legal, tax, and investment advisors. If investors sidestep IRS rules or mishandle precious metals in a Home Delivery Gold IRA (e.g., setting up the IRA improperly, engaging in a prohibited transaction, such as withdrawing metals before retirement to use for any other purpose, etc.) or if it is determined that home delivery or home or bank safe deposit box storage are not permitted by the IRS, investors could lose their tax-exempt status and be required to pay taxes and penalties. Although it appears the IRS has not issued clear guidance on the legality of IRA home delivery or IRA home or bank safe deposit box storage, the IRS may, at any time, audit an IRA, declare home or bank safe deposit box storage does not satisfy IRS requirements, and impose taxes and penalties on the IRA owner. The price of precious metals fluctuates over time and investors might lose money. Don t invest in Augusta products with money you can t afford to lose. As with any investment, past performance may not predict future returns. Augustapreciousmetals.com 8484 Wilshire Blvd., Ste. 515 Beverly Hills, CA Augusta Precious Metals. All Rights Reserved