To amend the Internal Revenue Code of 1986 to modify the rules relating to coins and bullion that may be held by individual retirement accounts and certain other individually-directed accounts.

Amends Internal Revenue Code provisions relating to bullion held in individual retirement accounts (IRAs) and other tax-exempt individually directed retirement plans to allow: (1) such bullion to be held in the form of a bar, ingot, or coin; (2) IRA trustees to satisfy physical possession requirements for such bullion by merely holding indicia of ownership; and (3) the transfer of the physical possession of such bullion to a custodian engaged in the business of holding bullion, coins, and precious metals.

[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4099 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 4099

To amend the Internal Revenue Code of 1986 to modify the rules relating 
to coins and bullion that may be held by individual retirement accounts 
           and certain other individually-directed accounts.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            November 6, 2007

 Mr. Sali (for himself, Ms. Berkley, and Mr. English of Pennsylvania) 
 introduced the following bill; which was referred to the Committee on 
                             Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to modify the rules relating 
to coins and bullion that may be held by individual retirement accounts 
           and certain other individually-directed accounts.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. MODIFICATION OF RULES RELATING TO COINS AND BULLION THAT MAY 
              BE HELD BY INDIVIDUAL RETIREMENT ACCOUNTS AND CERTAIN 
              OTHER INDIVIDUALLY-DIRECTED ACCOUNTS.

    (a) Bullion May Be Held in Bar, Ingot, or Coin Form.--Subparagraph 
(B) of section 408(m)(3) of the Internal Revenue Code of 1986 (relating 
to exception for certain coins and bullion) is amended by inserting 
``(whether in the form of a bar, ingot, or coin)'' after ``bullion''.
    (b) Physical Possession Requirement Satisfied if Trustee Holds 
Indicia of Ownership.--
            (1) In general.--Paragraph (3) of section 408(m) of such 
        Code is amended by inserting before the period ``or if the 
        requirements of paragraph (4) are met''.
            (2) Special rules relating to indicia of ownership.--
        Subsection (m) of section 408 of such Code is amended by adding 
        at the end the following new paragraph:
            ``(4) Trustee may hold indicia of ownership in lieu of 
        physical possession.--For purposes of paragraph (3), the 
        requirements of this paragraph are met if--
                    ``(A) the trustee holds the indicia of ownership 
                for the coins or bullion described in paragraph (3),
                    ``(B) physical possession of such coins or bullion 
                is maintained by a custodian--
                            ``(i) which holds the coins or bullion as 
                        agent for the trustee, and
                            ``(ii) which regularly engages in the 
                        business of holding bullion, coins, and 
                        precious metals,
                    ``(C) the trustee remains the account fiduciary and 
                otherwise liable to the account beneficiary to the same 
                extent as if the trustee had physical possession of the 
                coins or bullion,
                    ``(D) the indicia of ownership--
                            ``(i) are not subject to any right, charge, 
                        security interest, lien, or claim of any kind 
                        in favor of such custodian, and
                            ``(ii) are freely transferable by the 
                        trustee without payment of money or value other 
                        than for safe custody and administration, and
                    ``(E) upon written request by the account 
                beneficiary, the trustee notifies such beneficiary in 
                writing of the name, address, and principal place of 
                business of such custodian.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.
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