A Gold IRA is a self-directed individual retirement account that allows ownership of physical precious metals. All IRAs can give you tax advantages, but several types of IRAs offer different protections and assets. With a Gold IRA, not only can you hold paper assets like stocks and bonds, but you can also hold physical precious metals in the form of coins and bars. Ultimately, it is up to you to decide which types of precious metals you want to be held in your account.
A precious metal IRA (or Gold IRA) works the same as a conventional IRA or 401(k) with all of the same rules especially as they pertain to contributions and tax treatment. The significant difference is that unlike a conventional IRA or 401(k) with a bank or brokerage firm that specializes in bank deposits, stocks, mutual funds, annuities, and other approved assets, you hold physical precious metal coins, bullion, and bars such as gold, silver, platinum, and palladium in an IRA that are held in custody, by an IRS approved custodian, for the benefit of the Gold IRA account owner.
A Precious Metals IRA is a self-directed Individual Retirement Account that allows for the ownership of physical precious metals. All IRAs can give you tax advantages, but several types of IRAs offer different levels of protection and assets. With a Precious Metals IRA, you’re not limited to only holding paper assets like stocks and bonds, but you are able to hold physical precious metals in the forms of a coin or a bullion bar. You are in control over the precious metals you want to be held in your account.
To hold physical precious metal coins, bullion, and bars such as gold, silver, platinum, and palladium in an IRA, you need to open and set up a self-directed IRA (commonly referred to as a Gold or Precious Metal’s IRA). You then fund the Gold IRA account with cash or you can roll over some or all of an existing 401k account into your new IRA account. Then you select a precious metal broker or dealer, as well as an IRS approved depository (custodian). By working with Vault Metal, the entire process of setting up a Gold IRA is handled for you by one of our IRA specialists.
A Gold IRA is governed by the same tax rules as other IRAs. Your contributions into a self-directed IRA that holds gold and other precious metals can be deducted from your federal income taxes. The precious metals that you buy and hold in your Gold IRA cannot be withdrawn from the account until you reach the age of 59 1/2 years old without tax effects and a 10 percent penalty for the early withdrawal. Investors with a Gold IRA as part of their retirement portfolio must begin making mandatory minimum withdrawals at age 70 1/2 and pay taxes on those withdrawals.
If your Gold IRA is a Roth account, you will be able to make tax-free withdrawals because you were already taxed on the contributions. You also would not be compelled to start pulling money out at age 70 1/2.
A self-directed IRA is an Individual Retirement Account (IRA), which allows alternative investments for retirement savings plans such as physical gold or other IRS approved precious metals (such as silver, platinum, and palladium) that are held in custody, by an IRS approved custodian, for the benefit of the self-directed IRA account owner. A self-directed IRA functions in the same manner as a regular IRA, however instead of holding paper assets, you can invest in and hold physical bullion coins or bars in your IRA account.
Since gold is the most common precious metal invested into an IRA, the term “gold IRA” is used the most often in the industry to refer to a retirement account containing any some combination of precious metals. Other terms also used to refer to a precious metal IRA include, “precious metals IRA,” “silver IRA,” “platinum IRA,” or “palladium IRA.”
You may have little or no say about your investments when you choose a conventional IRA or 401(k) with a bank or brokerage firm that specializes in bank deposits, stocks, mutual funds, annuities, and other approved assets. But when you open a self-directed IRA with Vault Metal, you are empowered to make your own investment decisions and choose for yourself which IRA eligible precious metal coins, bullion, and bars to invest in.
The accounts listed below (subject to terms and conditions) can be converted into a gold IRA:
*To qualify, must be from a former employer or for an individual older than 59 ½.
You can hold approved Gold, Silver, Palladium, and Platinum in your IRA Account. Click here for a full list of IRS approved Gold, Silver, Palladium, and Platinum.
Now that you have decided to open a Gold IRA, where are your IRA precious metals stored? While invested inside of your self-directed Gold IRA, the physical metals must be stored with an IRS approved third-party depository. For our client’s precious metal storage needs we work with a number of top-tier Depositories’, such as Brink’s Global Services USA, Inc.(Los Angeles or Salt Lake City) and Delaware Depository (Wilmington, DE).
Should you decide to take a distribution from your Gold IRA, you have the option to receive your precious metals, as opposed to liquidating the coins or bars for cash. For example, if you have invested gold American Eagles inside of your Gold IRA you can request to receive gold American Eagles as your distribution. That would be considered an in-kind distribution and the IRS tax rules will apply as if you had taken cash as the distribution.
Investing in IRA approved gold, silver, platinum or palladium can be an important part of a balanced and diversified retirement portfolio. While investing in and owning precious metals inside of a Gold IRA is an exciting idea, retirement investors need to be aware that there are many IRS rules that need to be carefully followed. Therefore, finding and working with an approved Gold IRA custodian that is regulated and will hold precious metals for the benefit of the self-directed IRA account holder is an important step in the process of ensuring that those IRS guidelines are adhered to. We work with Strata Trust Company as our recommended IRA custodian. Strata Trust Company serves over 100,000 clients and have over $12 billion in assets under custody.
It is important to consider that every investment has risks, but typically gold is viewed as a long-term investment. Market and economic conditions should be taken into consideration as current conditions can influence the length of time gold should be kept.
The great part of a gold IRA account is that when you start taking distributions, you can either take physical possession of your metals or liquidate them for cash based on their current market value.
Our buy back process is simple. At any time, you can sell back any metals that you bought from us, and we will pay you the fair market value of the metals! We would pay you, at the minimum, the spot price at the time of liquidation–and for many coins, we would pay you well above that level, depending on the prevailing wholesale market.
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