Gold IRA: All You Need to Know
Add Precious Metals To Your Retirement Portfolio
Benefits From Tax Advantages
Rollover 401(k) or Traditional IRA
Store Precious Metals At Home
It’s not unusual for investors to purchase gold to hedge against inflation in an effort to bolster retirement funds against economic challenges. The best way of saving for retirement is with a Self-Directed IRA.
A Gold IRA, is a Self-Directed IRA that allows investors to add precious metals to help bolster your retirement funds. This includes gold, silver, platinum and palladium.
Since being introduced in the late 1990’s, Gold IRA’s have become increasingly popular. They offer investors a sensible approach to building a diverse retirement portfolio and gives you the opportunity to maintain a store of wealth when dollar-backed shares are losing money.
There are certain rules you should be aware of. The IRS have strict regulations with regards to the type of bullion you are allowed to include in a retirement fund. Only gold bullion produced by National Mints and a handful of reputable private refineries are permitted.
The reason for selected bullion is to protect the interest of investors. The IRS does not want retirees to take the risk of buying counterfeit coins, or precious metal products you will not be able to liquidate when you want to convert your assets to cash.
GoldIRA only purchases IRA-eligible products and has a ‘we source-you save’ policy that makes it easy for you to acquire gold bars and coins without paying extortionate markup costs.
What are the Tax Implications of a Gold IRA?
The IRS treats gold bullion and other precious metals as ‘collectibles’ which means investors can include precious metals in a retirement plan without incurring immediate tax distribution.
Furthermore, when you purchase precious metals for a gold IRA account, you may be eligible for a tax deduction. This depends on your age, and earnings bracket.*Please check with your CPA for IRS rules and regulations.
Investors are permitted to convert precious metals into dollars through a distribution once you turn 59 and a half years old and Gold IRA always recommends to hold precious metals for a minimum period of three to five years once purchased, so your precious metals price increase will surpass any fees that have been incurred to realize a gain.
When you do come to sell assets held in a Gold IRA, you do not pay the usual capital gains tax rate on collectibles – which can be as high as 28%. You only pay tax on a precious metals IRA when you withdraw money from the resulting sale of gold.
Should you need to distribute your wealth held in a Gold IRA before the qualifying age limits, you will be subject to full tax and a 10% penalty. There are special exemptions however.
Rolling Over a 401(k) or Roth (401)
It is coming to light that the 401(k)-employment retirement accounts leave workers with inadequate funds to enjoy in their retirement. In many instances, people over the age of 65 have to remain in gainful employment.
Fortunately, there is an option to avoid disappointment when you reach retirement age. You can rollover a 401(k) retirement into a Self-Directed Gold IRA at any time.
By doing so you have more control and flexibility over the assets you choose to invest in. Not only that, you have a broader choice of asset vehicles with which you can build a retirement portfolio that gives you more spending power once you retire.
Can I Store Precious Metals At Home With A Gold IRA?
In accordance with IRS rules, all retirement funds have to be overseen by a custodian. This means you will not be able to take physical possession of your precious metals without incurring a penalty, until you reach the age of 59½.
However, if you do not trust a third-party custodian to safeguard your precious metal investments, you have the option to set up a Limited Liability Company (LLC) of your own and have your gold bullion delivered directly to your house.*Check with your CPA to see if this is right for you.
Section 408(m)(3) of the Internal Revenue Code provides a list of the certain bullion and precious metals coins that are permitted in a Home Storage Gold IRA, and we provide easy access to all eligible products.
Our goal at GoldIRA is to make it easy for you to open a precious metals IRA in just three easy steps. Furthermore, our experienced team of specilaists are on hand to assist you in setting up an account that entitles you to store your precious metals at home.