Precious metals are more than just a good investment vehicle; they’re also great retirement investments! A Precious Metals Gold IRA offers low taxes, high liquidity, and the benefits of owning physical gold, silver, or platinum bullion that you can hold in your hand and pass down to future generations. This guide will help you decide if investing in gold and other precious metals through an IRA is right for you, explain what kind of Precious Metals Gold IRA makes sense for your situation, and walk you through the steps required to set up your account and make your first investment. Let’s get started!
Precious Metals Gold IRA Guide
Table of Contents
What are precious metals?
Precious metals are valuable, rare, naturally occurring elements that have been used for thousands of years to create coins and currency. In modern times, they have become a popular store of value to investors and collectors because they tend to increase in value over time. This makes them an excellent investment vehicle; if you buy gold or silver at today’s price and hold it for a number of years (or even decades), you can expect your investments to be worth more in the future. Even better, precious metals offer safety from market fluctuations due to their limited supply; when paper currencies decline in value due to inflation or devaluation, gold is unaffected because its supply cannot be artificially inflated by fiat currency.
Gold and silver are both popular precious metals, but there are also many others. Examples include platinum, palladium, rhodium, and iridium—even titanium has industrial uses as a corrosion-resistant metal. In general terms, precious metals refer to any metal that is rare and valuable enough that it can be used as currency or an investment; however, some precious metals have more practical uses than others. For example, platinum can be used in catalytic converters due to its high resistance to corrosion from heat and chemicals.
Precious Metals Gold IRA Guide
Why should I invest in a Precious Metals Gold IRA?
In 2017, precious metals IRAs were added to IRAs as one of their five designated alternatives. A Precious Metal IRA (PMIRA) allows investors to invest in gold and silver within an account that also holds other types of assets. It is specifically designated for retirement accounts, but its high liquidity and low-cost characteristics make it a viable alternative for investors who wish to add precious metals to their portfolio. But before you decide whether or not a PMIRA is right for you, it’s important to fully understand how they work and what types of risks are involved with investing in such a vehicle. In order to help you do so, here is everything you need to know about PMIRAs.
Investing in precious metals can be a smart option for retirement accounts because of their low correlation to traditional investments. This means that although they won’t necessarily go up or down at exactly the same time as stocks, bonds and other investment options, they will generally have a much lower impact on your overall portfolio. For instance, if stock prices start dropping as part of a long-term trend or following some sort of major event, precious metals are likely to continue gaining value, at least for awhile. That makes PMIRAs an attractive option for investors who want some measure of security during tumultuous times. They can also provide you with more diversification in your retirement portfolio than many other assets typically would by giving you access to two distinct asset classes.
Buyer Beware! Gold IRAs are Unregulated!
How much can I contribute to my Precious Metals Gold IRA?
There is no hard-and-fast rule on how much you can contribute to your precious metals gold IRA. On an annual basis, contributions are limited to a certain amount determined by your age (or Roth Conversion abilities). While there’s no maximum contribution in terms of dollars, one must consider that other allowable types of investment vehicles exist which may be better suited for more aggressive returns. Regardless, you may withdraw money from your PMIRA at any time provided you meet certain stipulations outlined in IRS code IRC section 408(m)(3) with regard to distribution minimums and type limitations.
Since 2008, there have been two major changes in regard to precious metals IRAs: In a nutshell, what had previously been known as non-IRA or self-directed precious metals IRAs are now know as PMIRA or self-directed IRA custodian. This is merely a technical difference. Precious metals used to be considered collectibles and therefore ineligible for an IRA at all. However, thanks to recent legislation such as IRC section 408(m)(3), they may now form part of a precious metals gold IRA provided that they meet certain requirements (see above).
Precious Metals Gold IRA Guide
Top Gold IRA Companies
Our recommended Providers are researched and vetted by us and many top consumer organizations. This is the short list of the most consistent companies we could come up with. Request information from them below.
#1: Augusta Precious Metals
Our Rating: 10/10
Pros
✅ ZERO complaints with the BBB and BCA
✅ Highest reputation and customer satisfaction in the industry
✅ Non-commissioned sales team
✅ Transparent pricing with up to 10 years of fees waved – with qualifying purchase.
✅ Hall of fame quarterback, Joe Montana was an actual customer before becoming their spokesperson!
Cons
❌ No way to setup online
❌ The minimum purchase for IRA/cash purchase is $50,000
Get a free gold IRA Kit now!
Call: 1-855-470-4636
#2: Birch Gold Group
Our Rating: 9.9/10
Pros
✅ Great company commitment to education and communication
✅ Impeccable customer service
✅ Silver, gold, platinum and palladium available
Cons
❌ Signup process can only be done thought a specific link
❌ Certain fees are not disclosed up front
❌ No buyback guarantee of precious metals
#3: Noble Gold Investments
Our Rating: 9.6/10
Pros
✅ One of the best no questions asked buyback programs in the industry
✅ Free delivery of your precious metals to your door at any time
✅ Over 20 years of experience in the precious metals industry
✅ Gold, silver, platinum, and palladium available
✅ One of the lowest barriers to entry – ideal for smaller investors
Cons
❌ High annual fees for low balances
Can I receive an immediate tax deduction?
Because you receive a tax deduction when you fund your precious metals gold ira, it’s important to make sure that you are actually receiving an immediate tax deduction. In other words, you need to be able to purchase precious metals gold iras from an investor who qualifies for a gold IRAs or gold 401k. You will receive tax benefits from any type of precious metals account, but there may be additional benefits from choosing a specific type of account. For example, there are also additional benefits for having retirement accounts through some employers (such as matching contributions). Make sure that your employer offers these types of retirement savings plans and then compare them with other employer plans or standard investment plans.
Precious Metals Gold IRA Guide
Are their limits on how much I can contribute?
There are not strict limits for contributions to a precious metals gold iras, as long as you stay within general limitations for retirement account contributions. However, if you have multiple types of accounts—including a precious metals gold iras and an ordinary investment account—you may want to be careful that your contributions to each account do not exceed annual or lifetime limits. You will want to consult your tax advisor and/or contact your employer’s plan administrator for details about your specific situation. Are all my funds safe with my broker?: Make sure that you choose a reputable broker or financial institution if you’re going to invest in precious metals gold iras.
What types of property can be held in a PMIRA?
Any type of precious metal, including gold and silver bullion, coins, collectibles and numismatic coins. However, you may not hold anything of a monetary nature in your PMIRA such as currency or a bank account. If you held cash in your account and wanted to buy gold with it after-the-fact there would be a tax liability due at that time. This is why we recommend storing your assets in a self-directed physical storage depository.
What is a PMIRA?: A PMIRA differs from a regular precious metals IRA in that it can include more than just precious metals. It also may hold other types of collectibles, such as art and certain numismatic coins. In addition, a PMIRA has no required minimum distribution (RMD) when you reach age 70 1⁄2; in fact, there are no RMDs at all! This makes it an ideal vehicle for retirement planning since you do not have to take required withdrawals on your assets each year.
What happens if the IRS questions my investment account?
Every investor wants to know how to get around IRS scrutiny when it comes to his or her investment accounts. The only way you can actually avoid getting your precious metals gold IRA looked at by auditors is by diversifying through multiple types of investments like stocks, bonds, and real estate in addition to gold. If you do get audited, however, there are several steps you can take before calling a lawyer and surrendering your precious metals account. Read on to find out what they are.
While it’s certainly a possibility that you could face IRS scrutiny if you have a precious metals gold IRA, there are several steps you can take before surrendering your account to ensure that you avoid a serious tax penalty. First and foremost, be transparent about your precious metals gold IRA with an experienced accountant or lawyer. After talking through your situation, he or she will help guide you on what steps to take next. They may ask for more documentation about where your precious metals gold comes from, especially if it looks like it came from abroad; so keep any receipts and paperwork related to purchasing gold bars, coins or bullion in a safe place just in case!
How long does it take to set up a PMIRA?
Because precious metals IRAs are not as popular as some other types of IRAs, most companies don’t have staff members trained specifically to set them up. Depending on your situation, you might have to coordinate with multiple departments and it could take weeks for you to actually open your account. With that in mind, make sure you choose a company that has an established process for getting new IRAs set up quickly and smoothly. If setting up a PMIRA is going to be stressful or time-consuming, then opening one probably isn’t worth it.
You’ll need to decide how you want to hold your precious metals before you start opening accounts. If you want to hold physical gold, silver or platinum coins and bars in your account, you’ll likely be required to open a self-directed PMIRA. Most custodians require that your account manager is a lawyer or an accountant, so keep that in mind when shopping around for one. On top of all that, some companies charge higher fees if you hold physical precious metals instead of paper assets. But if you prefer owning actual precious metals for reasons such as security or collectibility and don’t want to deal with storing them yourself, it might be worth paying extra for a self-directed PMIRA.
Are there any required distributions from a PMIRA?
See Important Information Below on Retirement
There are no required distributions from a PMIRA. However, you must take required minimum distributions (RMDs) based on your age at some point; any RMD is considered taxable income. You can choose to take RMDs from other IRAs before or after you start taking them from your PMIRA; and if your non-PMIRA retirement savings are low enough, you might be able to delay RMDs altogether until later in life when you have less money set aside for retirement. If you can’t afford to withdraw funds—or if doing so would deplete your retirement savings below a certain threshold—your heirs will still be able to access their inheritance after you die.
However, if you fail to take your RMDs as required, you’ll be taxed 50% of whatever amount you should have withdrawn.RMDs are based on three factors—age, account balance and life expectancy—and can be calculated using a simple table or more advanced software. Some financial planners may use their own set of rules when calculating RMDs; it’s generally in your best interest to consult a qualified expert who knows how to apply all relevant tax laws. A few factors influencing your RMD include number of years until retirement, annual rate of return for your PMIRA and life expectancy.
What are some other investment options for me?
Investment choices are typically categorized as either safe or risky. You may have heard some of these terms before. Safe investments include savings accounts, CDs and Treasuries; riskier investments can include stocks, bonds and mutual funds. But precious metals like gold and silver fall somewhere in between those categories. They’re not considered an investment by everyone because they lack inherent value, unlike a stock or bond that entitles you to some ownership in a company (which is why many people avoid them). But with any investment, risk means reward—and it’s true for precious metals too!
Getting Started with a Top Rated Company Like Goldco
When it comes to precious metals gold IRAs, one of your biggest considerations is whether or not you’re eligible to open an account. This typically requires you to be a US citizen and at least 59.5 years old, but each company may have additional requirements that vary from individual to individual. You’ll also need a checking account for any contributions you make and for receiving any distributions that are made later on down the line. If you don’t already have one, setting up a new bank account is usually a simple process that only takes about 10 minutes or so.
Our Top Recommended Gold IRA Company
Precious Metals Gold IRA
Goldco is one of your best options if you’re looking for a gold IRA. With more than 30 years of experience, they have a track record of customer satisfaction and have received top ratings from third-party sources like TrustLink and SuperMoney. As an independent organization, they can work with all types of IRAs, including self-directed ones, so you can open an account that suits your needs perfectly. You’ll be able to see how easy it is to make contributions by getting started online or by calling them at any time during their regular business hours.
