A Solo 401k also known as an individual 401k or self-directed solo 401k may be invested in precious metals from coins to bullion, consisting of gold, silver, platinum and palladium types.
Therefore, those self-employed with no full-time employees–defined as employees working less than 1,000 hours per year–may adopt a solo 401k for investing in precious metals, even if the business form is a sole proprietorship, corporation, LLC or partnership.
Once you have setup your solo 401k through a solo 401k provider whose plan documents allow for investing in precious metals, have opened the bank account in the name of the solo 401k at your local bank, and have funded the plan by making an annual contribution and/or transferring/rolling over funds from a former employer retirement plan or IRA, you may find the following solo 401k precious metals procedure helpful.
Procedure for investing a Solo 401k in precious metals
Step 1: Open a solo 401k with a solo 401k provider whose plan documents allow for investing in precious metals.
Step 2: Open bank account with checkbook feature at your local bank for the solo 401k and after funding it you can commence investing in precious metals by writing check(s).
Step 3: Understand that only certain types and qualities of precious metals be held in a solo 40k plan.
Examples of Allowed Precious Metals: bars produced by a manufacturer certified by NYMEX/COMEX, NYSE/Liffe, LME, LBMA, ISO 9000, for example, and having following fineness requirements: Gold = 99.5%; Platinum = 99.95%; Palladium = 99.5%
Popular and allowable gold coins include Gold: American eagle bullion and/or proof coins; American Buffalo bullion coins; and Canadian Maple Leaf bullion coins, to name a few.
Examples of Disallowed Precious Metals: bars not produced by a certified manufacturer and having fineness quality under 99.5%.
Disallowed coins include: Chilean peso, columbia peso, French Franc, Italian Lira, German Mark, Swiss Franc and rare/collectible coins, to name a few.
Step 4: Decide what types of precious metals to invest in as the rules vary for bullion and coins, and make the precious metals purchase by writing a check from the Solo 401k plan not your personal funds.
Step 5: Only the coins may be safe kept in a safety deposit box by the Solo 401k trustee; however, the bars/bullion are required to be stored by an approved depository institution such as Delaware Depository Service Company.
Step 6: Report the correct value of the precious metals on form 5500EZ solo 401k annual reporting return by using published metal prices in the Wall Street Journal.
Step 7: Once the precious metals are sold to a third-party, return the proceeds back to the Solo 401k bank account, not your personal bank account as it would be deemed a taxable distribution.
Lastly, familiarize yourself with the IRS code sections pertaining to allowable types of coins in a retirement account: Section 408(m)(3)(A) of the IRC (Internal Revenue Code). And following code section of the IRC defines the bullion standards: Section 408(m)(3)(B
Kris Kristofferson has been making things happen his entire life. Born in Texas and raised in a military family, he was a Golden Gloves boxer who studied creative writing at Pomona College in California. The Phi Beta Kappa graduate earned a Rhodes scholarship to study literature at Oxford, where he boxed, played rugby and continued to write songs. After graduating from Oxford, Kristofferson served in the army as an Airborne Ranger helicopter pilot and achieved the rank of Captain. In1965, Kristofferson turned down an assignment to teach at West Point and, inspired by songwriters like Willie Nelson and Johnny Cash, moved to Nashville to pursue his music. "When I was in the army, I was one of the few people outside of his personal friends who knew about Willie Nelson," Kristofferson recalls. "I listened to a disc jockey who happened to be a Willie fan. He would play Willie's songs and talk about him all the time. By the time I got to Nashville, he was a superhero to me. For guys like me, Johnny Cash and Willie Nelson were two gods we worshipped. Then Willie and I got to be best friends. I came from a position of idolizing him to finding out he's the funniest son of a bitch you could be around."After struggling in Music City for several years, Kristofferson achieved remarkable success as a country songwriter at the start of the 1970s. His songs "Me and Bobby McGee," "Help Me Make It Through the Night," "Sunday Morning Coming Down," and "For the Good Times," all chart-topping hits, helped redefine country songwriting. By 1987, it was estimated that more than 450 artists had recorded Kristofferson's compositions. His renown as a songwriter triggered Kristofferson's successful career as a performer and that, in turn, brought him to the attention of Hollywood, leading to his flourishing career as a film actor. Kristofferson has acted in more than 70 films. In 1977 He won a Golden Globe for Best Actor in "A Star Is Born." He's appeared in cult favorites including the "Blade" trilogy, "Lone Star," "A Soldier's Daughter Never Cries," "Alice Doesn't Live Here Anymore," "Blume In Love," "Cisco Pike," and "Pat Garrett and Billy the Kid." Recent films include "Fast Food Nation," "Dreamer: Inspired By A True Story," "The Jacket," "Silver City," "He's Just Not That In To You," and "Dolphin Tale."Heralded as an artist's artist, the three-time GRAMMY winner has recorded 28albums, including three with pals Willie Nelson, Johnny Cash and Waylon Jennings as part of the Highwaymen. Kristofferson has spent three decades performing concerts all over the world, in most recent years in a solo acoustic setting, which puts the focus on the songs. "There's an honesty in the sparseness. It feels like direct communication to the listener," he says. "I still have more fun when I'm with the band, but being alone is freer, somehow. It's like being an old blues guy, just completely stripped away." Kristofferson has reached living legend status, but that hasn't changed or hindered his creativity. His current CD, Feeling Mortal contains eleven gems that explore love, gratitude, aging, and his ever-present theme of freedom. "If you took freedom out of the songs, you'd have very few Kristofferson songs," he laughs. In addition to many other awards, Kristofferson is a member of the Country Music Hall of Fame, winner of the prestigious Johnny Mercer Award from the Songwriter Hall of Fame, and was honored with the American Veteran's Association's "Veteran of the Year Award" in 2002. For Kristofferson's 70thbirthday in 2006, his friends and admirers gifted him with a tribute CD, The Pilgrim: A Celebration of Kris Kristofferson. Stars including Willie Nelson, Russell Crowe, Emmylou Harris, Gretchen Wilson, Rosanne Cash, and Brian McKnight recorded 17 of Kristofferson'scompositions for the tribute. In 2007, Kristofferson was honored with the Johnny Cash Visionary Award from Country Music Television and in 2009 BMI lauded Kristofferson with the Icon Award.Hereceivedthe Frances Preston Music Industry Award from the T.J. Martell Foundation in March, 2012. In 2014, Kristofferson was honored witha GRAMMY Lifetime Achievement Award and the PEN Song Lyrics of Literary Excellence Award