Precious metals like gold, silver and platinum can serve as excellent diversifiers for IRA portfolios. Investors see precious metals as physical investments that they believe can outstrip stocks in times of market instability.
Doing a rollover to add precious metals to your retirement account can be achieved through transferring funds into a self-directed IRA custodian that permits alternative investments. This process is known as rollover.
Taxes
Precious metal investments don’t incur taxes until they are withdrawn from an IRA account; however, the IRS has specific withdrawal rules which can vary each year; to fully understand any implications on your individual situation it is recommended that you seek advice from a financial advisor or accountant.
In order to avoid penalties when withdrawing physical precious metals from an IRA, they must be exchanged for cash at once and you must be at least 59-1/2 when making your withdrawal. There are, however, certain exemptions to this rule that can help you sidestep a 10-percent early withdrawal penalty.
Keep in mind that IRAs containing precious metals should only ever be stored in a secure depository – not at home or in your safe. In general, experts advise limiting their presence as part of your overall retirement portfolio mix.
Funding
If the dollar’s declining purchasing power worries you, a precious metals IRA is an excellent way to diversify your portfolio. Keep in mind, however, that precious metals should complement existing investments rather than replace them in your IRA portfolio.
Most investors choose physical gold coins and bullion due to its long-term value and as an inflation hedge; however, you can also invest in silver and platinum IRAs.
Once you’ve selected a precious metals IRA provider and selected an IRS-approved type of metal to invest in as well as depository, funding your account becomes possible. This may involve making a transfer or rollover from another IRA or retirement account, or depositing cash directly into a self-directed gold IRA account. Once funded, your precious metals IRA custodian will use these funds to purchase gold which meets IRS specifications before placing it safely in an IRS depository of your choosing.
Rollovers
Once you’ve identified a self-directed IRA custodian, the next step should be selecting a precious metals dealer who has experience working with retirement accounts and can recommend what types of bullion to purchase. Make sure that each dealer you consider possesses all required licenses, registrations, insurances and bonds before proceeding with their selection process.
Once you’ve selected your precious metals, the IRA custodian will purchase and store them in a depository on your behalf. Different depositories offer various storage solutions; choose the one best suited to you before beginning to enjoy tax-advantaged investment benefits with precious metals in your IRA! Adding precious metals can diversify your holdings as well as protect against inflation or market volatility by diversifying investments further and protecting against inflation or market instability.
Convenience
Precious metal prices are highly unpredictable, requiring investors to diversify their assets in order to mitigate market fluctuations and risks of loss. A financial professional with experience in precious metal IRAs can assist investors with this goal while storage in another country may provide regional diversification as well as potential tax benefits.
Working with a custodian, metal dealer and depository can take time. However, there are ways to streamline this process for easier. Some IRA providers have established pre-agreements with dealers and depositories which reduce paperwork requirements, while reputable dealers only work with approved custodians and will clearly label their products as eligible IRA investments – this saves both time and energy when investing and allows an investor to focus more on dollar cost averaging for optimal returns over time.
