IRAs funded with COLLECTIBLES (Fine Art)
[color=#8040FF][i][b]Anybody working the IRA COLLECTIBLE market as an Alternative investment to the general stock market?
I understand there might be some CLOSED-END FUNDS around the country that “specialize” in this?
Who do you know or recommend?
My Wife is an Artist and Fine Art Conservator with the AIC (American Independent Conservators) and would like to know if her Clients could Fund their IRAs with Fine Art (in particular, Oil Paintings both Classical and Contemporary).
Any advice or insights would be most appreciated.
Thank you.
Emil and Peggy[/b][/i][/color]
Permalink Submitted by Alan Spross on Mon, 2011-12-12 17:28
Collectibles are not allowed IRA holdings per the following copy of Sec 408(m):
>>>>>>>>>>>>>>>>>>>>>>>.
(m) Investment in collectibles treated as distributions
(1) In general
The acquisition by an individual retirement account or by an
individually-directed account under a plan described in section
401(a) of any collectible shall be treated (for purposes of this
section and section 402) as a distribution from such account in
an amount equal to the cost to such account of such collectible.
(2) Collectible defined
For purposes of this subsection, the term ”collectible” means
–
(A) any work of art,
(B) any rug or antique,
(C) any metal or gem,
(D) any stamp or coin,
(E) any alcoholic beverage, or
(F) any other tangible personal property specified by the
Secretary for purposes of this subsection.
>>>>>>>>>>>>>>>>>>>>>
There is a partial exception for certain coins and bullion, but not for art. You might check with one of the large self directed IRA custodians such as Guidant or Pensco is aware of any investment vehicles that trade based on the values of artwork and have passed muster with the IRS. You could purchase shares of Sothebys stock for your IRA, but no individual would be allowed to purchase specific works of Art to be owned by their IRA.
Permalink Submitted by Emil Wansa, NSAA, CLTC, LTCP on Mon, 2011-12-12 19:48
Thank you for your Prompt response to our inquire into this Topic.
Outside of Qualified $ we then will continue with NonQualified $ for Fine Art within a Portfolio.
Thank you.