Certified Coins in Retirement Accounts?
S.1769: Options for Investors though United States Certified Coins Act of 2009
Summary: Proposal to amend the Internal Revenue Code to allow the purchase of certain collectible coins for individual retirement accounts and self directed pension accounts.
Sponsor: Sen. David Vitter
Date Introduced: October 8, 2009
Current Status: Referred to Committee (October 9, 2009)
Legislation has been introduced which could potentially have a great impact on the market for certified collectible coins. The recently intoduced S. 1769 would amend the Internal Revenue Code of 1986 to allow certain coins to be purchased for retirement accounts.
The bill outlines certain requirements for the coins. Specifically, (1) the coin must be certified by an independent, third party grading service; (2) the coin coin must be or must have been at any time legal tender in the United States; and (3) the coin must be traded on a nationally recognized electronic coin trading network or listed by an independent coin wholesale reporting service.
If the coin meets these requirements, it could be purchased by an individual retirement account or other individually directed pension plan account. Other requirements regarding physical possession of the coins and indicia of ownership would also apply.
Similar legislation had been introduced in 2005 and 2007, but neither bill was voted on in the House or Senate. In order to become law, a bill must be passed in both the House and Senate, and signed into law by the President. Based on the failure of past attempts to pass this bill, the passage of S. 1769 doesn’t appear to be likely. Nonetheless, it will be closely watched by coin collectors.
