Gold can provide an effective means of diversifying your investment portfolio, but you should be mindful of certain risks and fees involved with this form of investing.
Rosland Capital is an excellent option for anyone who’s interested in investing an IRA in gold, boasting excellent ratings from both the Better Business Bureau (BBB) and Better Consumer Agency (BCA), helpful educational resources, and one of the lowest initial purchase requirements among gold IRA services: $2,000!
Taxes
No matter whether your retirement account is traditional or Roth, earnings on investments held within it will be taxed according to IRS rules and type. Ordinary income taxes at your marginal tax rate apply on distributions from all accounts such as IRAs, SEP & SIMPLE IRAs, Individual 401(k) plans or self-employed retirement accounts (Schedule C).
If you use your IRA funds to invest in collectibles such as art, rugs, antiques, metals or gems – such as artworks, rugs antiques metals and gems – or invest in real estate using an IRA account may constitute engaging in prohibited transactions subject to penalties. Furthermore, owning real estate within an IRA could constitute another prohibited transaction.
However, if you are age 70 1/2 and taking Required Minimum Distributions (RMDs), an alternative may exist for satisfying some or all of your RMD by directly transferring up to $100,000 annually from a traditional IRA directly into charity with a Qualified Charitable Distribution (QCD). This will satisfy some or all of your RMD while simultaneously lowering taxable income. It is advisable that before taking an QCD you speak with your tax advisor.
Investing
Gold can be seen as a reliable asset that can protect against inflationary effects, while also being relatively risk-free compared to other investments. But investing in precious metals may carry additional risks than others and, before making your decisions, it is wise to become acquainted with their risks before opening an IRA account.
When considering a physical Gold IRA, it’s crucial to find a custodian who provides access to gold eligible for this type of account. Doing your research is key; research about their credentials should also include high pressure sales tactics or suspicious activities that could disqualify an IRA account.
Rosland Capital is an excellent choice for investors searching for a reliable gold IRA custodian, boasting both an A+ rating with Better Business Bureau (BBB) and an AA rating from BCA – and offering an intuitive online investment process with several standout features, such as their complimentary Gold IRA Kit that provides essential insight into precious metal investing.
Rollovers
Contrary to traditional IRAs that invest only in stocks, gold IRAs offer investors a way to hold physical precious metals instead. You can purchase and own gold bars and coins that will be stored at a bullion depository – you also have the choice between segregated or unsegregated storage options when selecting a company for this investment. When searching for your ideal gold IRA company make sure they offer low fees with exceptional customer service!
First step of a gold IRA rollover: Contacting your old 401(k) custodian and getting funds released and transferred directly or indirectly into your new gold IRA account. A direct rollover allows funds from your old account to reach their new one without you touching them, helping avoid tax and penalty liabilities that occur every 60 days otherwise.
Once your gold is invested in an IRA, you can work with its custodian to manage it effectively. Rebalancing, changing investments or taking RMDs at age 73 are all options to consider.
Fees
Gold investments come with fees that can add up over time and erode returns. Before investing, it is essential that all fees associated with your particular investments are carefully evaluated in order to make an informed decision.
Investing in physical gold often comes with high markups, shipping and storage fees and insurance premiums. Furthermore, make sure the gold purchased meets your purity standards before investing.
However, an easier and more cost-efficient way of owning gold can be accomplished through ETFs and mutual funds that offer shares in gold-related companies through ETFs and mutual funds. These funds typically feature lower minimums, greater liquidity and access to precious metal. But you should always compare fees associated with each investment option to ensure you find one suitable to your portfolio and financial goals – to find out more about these fees please download our Investor Kit today!