IRS position
The IRS says there is an exception for certain highly refined bullion provided it is in the physical possession of a bank or IRS-approved nonbank trustee.
For Silver IRA decisions, treat this as one part of the full account picture: eligibility, custody, fees, liquidity, tax rules and alternatives should be evaluated together.
LLC structures do not automatically solve it
The IRS FAQ specifically notes that the possession rule also applies to an indirect acquisition such as an IRA-owned LLC buying bullion.
Why the stakes are high
If an arrangement fails IRA rules, unintended taxes, penalties or account disqualification issues may result.
For Silver IRA decisions, treat this as one part of the full account picture: eligibility, custody, fees, liquidity, tax rules and alternatives should be evaluated together.
Marketing vs legal analysis
Do not rely on a promoter's claim that a structure is 'IRS approved.' Ask for the specific legal basis and obtain independent tax/legal advice.
Safer operational baseline
Use a legitimate self-directed IRA custodian and qualifying depository structure for metals that remain inside the IRA.
For Silver IRA decisions, treat this as one part of the full account picture: eligibility, custody, fees, liquidity, tax rules and alternatives should be evaluated together.
Personal possession is different after distribution
Taking metal as a formal IRA distribution is different from personally storing assets that are still represented as IRA property.