Constructive Receipt
What is Constructive Receipt?
Constructive receipt is an IRS doctrine stating that you owe taxes on funds the moment you have unrestricted access to them, even if you have not physically received them. For Gold IRAs, constructive receipt is what makes home storage illegal: storing IRA-owned metals at home gives you unrestricted access, which the IRS treats as a deemed distribution of the entire account value.
Why does constructive receipt matter for Gold IRA investors?
Constructive receipt explains why home storage Gold IRAs do not work, even when promoted via LLC structures. The moment you take personal possession of IRA-owned metals, the IRS treats the full account as distributed — taxable as ordinary income plus a 10% early-withdrawal penalty if under 59½. Avoiding constructive receipt is the entire reason custodial structures exist.