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Investing some of your hard-earned money in precious metals makes it possible to diversify your investments and minimize how much market volatility impacts you. Many investors have been turning to gold, silver, and other precious metals lately for precisely this reason. With so much economic uncertainty and how unpredictable the stock market has been, you may be wise to be considering the same thing.
One of the top ways to invest in gold and silver is by adding them to an IRA. If you've heard of Precious Metals IRAs (or Gold IRAs) but aren't exactly sure what needs to be done to set one up, you're in the right place. Today, we're going to look at what you'll need to do to convert your current retirement account into a Gold IRA in which you'll be able to hold valuable precious metals to grow your retirement fund.
What is a Precious Metals IRA?
Before we dive into how to add gold, silver, and other metals to your IRA, let's start by review what exactly a Precious Metals IRA is. Also called a Gold IRA, a Precious Metals IRA is one example of a Self-Directed IRA. This type of IRA lets you hold alternative assets, like precious metals, in a retirement account.
As with other types of IRAs, you can open either a traditional or Roth Precious Metals IRA. Both types offer tax benefits but differ in terms of when you pay taxes on the money in the account. Traditional Gold IRAs grow tax-free until you're ready to make withdrawals from the account. They are often seen as a good choice for those who expect to be in a lower tax bracket when they retire. With a Roth IRA, the money you put in is taxed before it is invested, allowing you to withdraw money upon retiring without having to pay any additional taxes. This type of IRA is often seen as a good choice for those who anticipate being in a higher tax bracket when they retire.
What are the Benefits of Opening a Gold IRA?
The tax-related benefits of opening a Gold IRA are appealing enough, though they aren't the only benefits you'll enjoy. Beyond the favorable tax laws that are in place for IRA holders, you'll also benefit from all that comes with investing in precious metals. As mentioned earlier, diversifying your portfolio offers a buffer against market volatility, which means the overall impact of a market crash will be less severe.
Many financial experts recommend investing in precious metals. They are a tangible asset, which means that their value can't simply disappear. The bars and coins you add to your IRA can be sent directly to you when you retire, or you could choose to liquidate them to receive cash.
Gold is such a highly treasured commodity around the globe. It is also in limited supply. These two facts mean that it is likely for its value to continue to increase over time. Moreover, scientists and inventors continue to find exciting new opportunities to use gold and other precious metals. From medical innovations to technology and more, the demand for these metals is likely to increase in the future.
Can I Add Precious Metals to My IRA?
You can add precious metals to an IRA. However, you cannot simply add them to your current account. You will need to create a new Precious Metals IRA account with a Gold IRA company. You will then be able to roll over some (or all) of the funds from your existing IRA account. Most accounts are eligible for a rollover, but you should confirm that your account is qualified. The Gold IRA company you decide to work with can help you with this step.
How Do You Roll Over an IRA to a Gold IRA?
Rolling over your current retirement account to a Gold IRA is probably easier than you'd think. As mentioned above, the first step is to choose a reputable Gold IRA company and get your new account set up. This step will involve a little bit of a paperwork, but it shouldn't consume much of your time.
After this, you'll have to connect with a Gold IRA custodian to initiate a transfer from your current retirement account. Working with a qualified custodian is important; if IRA funds are not transferred properly or remain in your possession for too long, you could face high fees or taxes from the IRS. Gold IRA custodians are experienced with moving funds and will make sure that you don't face any unwanted penalties or taxes.
After working with the Gold IRA custodian, the funds from your account will be ready to invest. The next step is to choose the bars and coins you would like to hold in your new IRA. If you need advice or recommendations, the agent from the Gold IRA company you're working with should be able to help.
What Coins and Bars Can You Hold in a Gold IRA?
Just as you can choose from a variety of stocks and bonds for a traditional IRA, you will have several options when it comes to adding precious metals to a Gold IRA. Just about every Gold IRA company will offer a variety of silver and gold bars and coins for you to choose from, and some may even offer additional options with platinum and palladium.
There are minimum purity levels for each type of precious metal that have been established by the IRS. With the exception of the Gold American Eagle Coin, all gold must have a minimum purity level of 99.5%. Silver coins and bars are required to be at least 99.9% pure, and palladium and platinum coins and bars must be a minimum of 99.95% pure.
The specific selection of gold, silver, and other precious metals will vary across different Gold IRA companies. Below are just a few of the different bars and coins you may find to invest in with the company you choose.
Where are IRA Precious Metals Stored?
Precious metals for IRAs are required to be held in an IRS-approved depository. The IRS prohibits individuals from taking possession of the precious metals from a Gold IRA before they meet the requirements to retire and start taking disbursements. If you do take possession of your precious metals earlier than allowed or try to act as the custodian for your account, you could face serious penalties and taxes.
Fortunately, there are several IRS-approved depositories where the coins and bars for your IRA will be securely held until you retire and start taking withdrawals. Different precious metals companies may offer storage options with one or more of these depositories. Storage fees can vary between companies and will be higher if you choose a segregated storage option (where your coins and bars will not be mixed with those of other individuals).
Below are some of the IRA-approved depositories:
Having your precious metals stored with any of these depositories should offer peace of mind that your investment is secure. They each utilize exceptional security measures and insurance policies to protect your coins and bars.
What is the Best Gold IRA Company?
Now that you've learned more about opening a Gold IRA and adding precious metals to your account, you're ready to get the process started. Rather than doing an online search and choosing the first Gold IRA company that shows up, we'd like to share a few of our top recommendations. Each of these companies has consistently demonstrated their commitment to their customers. They offer a vast selection of precious metals, qualified experts to help you through the process, and come highly reviewed by past clients.
Goldco is the gold standard when it comes to precious metals providers. They have been serving clients since 2006 and have grown to be a well-respected and trusted name in the industry. Past customers and review organizations alike have given Goldco very high ratings. The Better Business Bureau along with the Business Consumer Alliance have both awarded Goldco their highest scores of A+ and AAA, respectively.
Goldco aims to offer personalized service to help each customer open their account. You'll work alongside an account representative who will support you through completing any required paperwork. Your account representative will also work with the Gold IRA custodian during the rollover process and then will be able to help you choose which bars and coins to add to your account.
You'll find a wide variety of gold and silver bars and coins available to add to your portfolio when you work with Goldco. They work with the Delaware Depository and Brink's Global Services, two top names in the storage industry.
To further sweeten the deal, you can even earn free silver if you sign up for an IRA with Goldco. New IRA account owners can receive as much as $10,000 in free silver based on the value of their new IRA. Contact an account representative to learn more about this exciting offer.
We also think that you may like working with Augusta Precious Metals. Isaac Nuriani started the company to help his clients improve their financial outlook through investing in precious metals. Between the AAA rating awarded by the BCA, the A+ rating awarded by the BBB, and the top reviews given by clients, you can feel confident in giving Augusta Precious Metals your trust.
Setting up Gold IRAs is one of the areas Augusta Precious Metals specializes in. They offer a varied assortment of silver and gold coins and bars to help you spread out your investment streams and set yourself up for a comfortable retirement. Once your IRA is set up, your metals will be stored in the trusted Delaware Depository.
In 2015, American Hartford Gold was founded by Sanford Mann. While they have fewer years of experience than some of our other top companies, their dedication to customers, exceptional service, and top-quality precious metals has really caught our attention. Bill O'Reilly, Liz Wheeler, Rob Carson, Roman Balmakov, and several other media personnel and celebrities all recommend American Hartford Gold to their viewers and listeners.
With American Hartford Gold, you'll also find one of the best selections of precious metals. You'll find many different options to help you choose the best coins and bars to match your investment needs and interests. When you open a Gold IRA with American Hartford Gold, you may qualify for the special promotion they are running right now. New Gold IRA clients with qualified accounts can receive a maximum bonus of $5,000 in free silver. You may also qualify for zero IRA fees for up to three years. Reach out to one of the precious metals experts at American Hartford Gold to learn more and see if you will qualify for this incredible opportunity.