Precious metals invested in a self-directed IRA must be stored in an approved depository such as the Delaware Depository. Your IRA custodian may recommend a custodian, but you can choose one yourself that meets the requirements of the Internal Revenue Code. The main benefits of investing in precious metals through an IRA are tax benefits. By using an IRA to buy precious metals, the investor saves taxes either now or in the future.
The specific tax benefits depend on whether you choose a traditional IRA or a ROTH IRA. Physical gold can play an important role in a well-diversified retirement portfolio. However, there are certain Gold IRA rules that need to be considered if you want to take advantage of all the benefits that such a facility can offer. According to IRS rules for precious metal IRAs, as a retailer, we MUST ship the products to an approved IRA depot, which then holds the metal until you are ready to liquidate the position. You can liquidate or take possession of your metals at any time. However, this is considered distribution and may have tax consequences.
They’ll help you maximize your retirement savings, better avoid tax penalties, and stay in control of your precious metals until the day you retire. Please contact either your IRA custodian or the custodian of your choice to find out more about the fee structure. We’ve teamed up with New Direction IRA to set up and maintain the most cost-effective and fastest IRA so you can take advantage of all the tax benefits of an IRA investment. Be very careful when making an IRA transfer or rollover, as these transactions, if not properly executed, could actually trigger a major tax event on your savings.
The term gold IRA is primarily used to describe a self-directed IRA in which funds are invested in hard metals. If you’re interested in setting up such an account, you’ll need to look for a specialized custodian bank or company that is able to handle all the documentation and reporting for tax purposes needed to maintain a Gold IRA. You can’t add gold that you already own to a self-directed IRA, even if it meets all the requirements of the Internal Revenue Code. However, keep in mind that these accounts incur higher fees as you must buy and store precious metals.
You must be careful when making an IRA contribution, as unapproved metals will be rejected by the custodian. Examples of unapproved precious metal products include gold from before 1933, gold coins from Krugerrands, and 90% US silver coins. All products that do not fall within these areas, with the exception of American Gold Eagles, are not eligible for IRA contributions. It is used for industrial and jewelry purposes, but broadly speaking, most of the yellow metal is found in bank vaults and safe deposit boxes.
