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Lev, Tax Advisor
Category: Tax
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Experience:  Taxes, Immigration, Labor Relations
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In an answer you posted on 6/10/2009 re Central Fund of Canada

Resolved Question:

In an answer you posted on 6/10/2009 re: Central Fund of Canada (CEF) you replied, 'There would not be any issue if you held CEF in tax deferred account - like IRA'.
Since CEF holds collectables (gold & silver), have I somehow compromised my IRA? I'm 68 and have yet to take any distributions.
Referenced answer:
Submitted: 7 years ago.
Category: Tax
Expert:  Lev replied 7 years ago.

Yes - owning CEF is equivalent to owning physical bullion - but you do not store physical bullions in your home.

Why do you think that your IRA might be compromised?


Even for physical bullions - while there are special requirements - you may hold them in your IRA and even distribute to you at some point - without converting into currency - see this article -


But that is not an issue with CEF - so I am not clear why do you think that your IRA might be compromised? What regulation do you think might be violated?


Lev and other Tax Specialists are ready to help you
Customer: replied 7 years ago.
Thanks for the prompt response. I'm just a little paranoid when it comes to tax deferred accounts.
Expert:  Lev replied 7 years ago.

I suggest to contact the administrator of your IRA account - because the administrator is in charge for all IRS compliance issues - and confirm with the administrator if there are any regulation might be violated if you hold CEF in your IRA.

I honestly - do not see any issues - but it might be better to have another opinion.


You may also contact the IRS and get their input on that issue - 1-800-829-1040.



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