If you are considering opening a Self-Directed IRA for Precious Metals, there are a few steps that must be completed first. First and foremost is selecting a dealer and depository who are approved IRA depository partners.
Precious metals IRA depository vaults must meet stringent IRS requirements in terms of security, inventory management and record keeping practices.
IRA Certificates
IRA Certificates are savings accounts that offer higher interest rates in exchange for agreeing to keep your money locked away for an agreed-upon amount of time, making them an attractive way of adding more to retirement savings without taking on riskier investments like stocks or bonds.
As with other IRAs, CD IRAs are subject to federal contribution limits and tax rules governing withdrawals. Traditional, Roth, or SEP IRAs may all hold them for self-employed individuals; though if your retirement funds require tax paying storage then a SEP IRA might be an efficient and tax efficient solution.
At U.S. Money Reserve, we partner with trusted depository vaults that meet stringent IRS requirements for secure storage facilities that investors entrust with their precious metals until it comes time for withdrawal. In addition, these storage facilities must adhere to stringent IRA regulations regarding recordkeeping and metals under their care.
IRA CDs
IRA CDs are similar to regular bank certificates of deposit, but with the added advantages of an Individual Retirement Account. As such, Roth IRA CDs allow investors to earn tax-free earnings and traditional IRA CDs allow tax deferral on investments made within these retirement plans.
Your money in an IRA CD should be covered up to $250,000 by either the FDIC or NCUA depending on where it’s held, and its interest can compound daily, monthly, or quarterly.
When investing your IRA precious metals, ensure you have an IRA custodian and depository in place. These companies must meet stringent IRS regulations while offering secure vault storage for your metals. SilverTowne recommends New Direction IRA as our go-to custodian; opening an IRA account takes just minutes! In addition, they partner with trusted depository partners like A-M Global Logistics who specialize in safe precious metal storage.
IRA Savings Accounts
IRA savings accounts operate much like traditional savings and checking accounts but provide tax advantages. Individual taxpayers may open traditional or Roth IRAs while small business owners and self-employed individuals can establish SEP and SIMPLE IRAs.
Contrasting an employer-sponsored retirement plan such as a 401(k), individual Retirement Accounts (IRAs) offer tax-deferred growth and tax-free withdrawals in retirement. They can also be invested in various assets – even precious metals!
Precious metals purchased within an IRA must be stored in an IRS-approved depository. Most storage facilities accept coins and bullion that meet specific fineness requirements, and SilverTowne can submit invoices directly to your IRA custodian for purchasing precious metals, then ship them directly to their chosen depository – holding onto them on behalf of your account.
IRA Precious Metals
Precious metals can make an appealing investment option in SDIRA portfolios, but it is crucial to understand their rules of usage when investing. For example, the IRS mandates that any precious metals owned by an IRA be stored with an approved depository that meets regulatory standards similar to banks or federally insured credit unions.
IRA-approved precious metals depositories must meet stringent security, segregation and processing speed standards to meet IRA custodian approval for their transactions. Otherwise, their approval could be refused by their custodian.
Investors should do their homework when choosing a depository to house their precious metal investments, taking into account factors like geographical location and storage options. Furthermore, investors should carefully review each depository’s terms and conditions to ensure it suits their investment requirements – some depositories may be easier than others so finding one that meets them is essential.
