Precious Metals IRA
Precious Metals IRA Information
Self Directed IRAs
Self-directed IRAs are individual retirement accounts that give the owner complete control over their investment choices.
Unlike other IRAs, your investments in a self-directed IRA aren’t limited to stocks, bonds, or mutual funds – which makes this one of its best features.
Instead, you have a number of other options. These include being able to take full advantage of investing in alternative assets such as gold, platinum, silver, and palladium.
3 Reasons to Use Self-Directed IRAs to Invest in Precious Metals
Beyond that, there are three specific reasons to use self-directed IRAs to invest in these precious metals.
First, adding precious metals like these to your retirement account can be a great way to diversify your overall portfolio. Among other things, precious metals are generally understood to help investors avoid the risk of unstable markets and inflation. Of course, they tend to grow in value over time, which is ideal for any investment account meant to help with retirement.
Second, self-directed IRAs are also given protection under federal bankruptcy laws to assure assets are secure, making them a great vehicle for protecting the value of your precious metals.
Third, various self-directed IRAs allow the distribution of assets to beneficiaries after the owner’s death with little or no tax implications, allowing you to spread your wealth over generations.
However, beware of the common misconception that you can take physical possession of your bullion. Unfortunately, this is not the case.
Instead, your bullion must be held in the physical possession of a U.S. trustee. The safest possible place to store your approved bullion is with an approved depository.
IRA Questions and Answers
For a 401k rollover, your funds are directly paid to you. Once you’ve received them, your new self-directed IRA account may be transferred within 60 days or otherwise be required to pay taxes. To better understand these rules, it’s best to consult with a tax or financial advisor before actually doing an IRA fund transfer.
Each person can have multiple IRA accounts. However, the total yearly contribution stays at the same maximum regardless of the number of your IRAs. This total takes into account the value of any gold, silver, platinum, and or palladium you contribute.
Your precious metals are fully insured once they arrive at the depository. As added protection, our company also insures each mailing we ship out, even in the rare event that your package gets damaged or lost.
Absolutely. At American Federal, we always recommend that clients seek the counsel of their financial advisors before making any decisions regarding their IRAs. Generally, coin dealers and brokers are not registered financial advisors. As such, they are not legally responsible for any of the advice the give you. That’s why we highly recommend that you have your personal financial advisor give you their opinion on a precious metals IRA.
To be perfectly clear: we do not give any investment advice. With that being said, since self-directed precious metals are backed by not only real and physical, but also segregated metal, several of our clients more likely prefer this over an ETF such as GLD that’s merely backed by some pool of gold holdings and positions.
Again, it’s worth speaking to your financial advisor about the former’s potential advantages for your unique portfolio.
One of the best parts of investing in precious metals through an IRA, instead of a traditional route, is the tax savings you can expect to enjoy. See above for the tax benefits of investing in precious metals within a self-directed IRA, traditional or ROTH IRA are listed above.
Yes, you may be subject to IRA contribution limits depending on your type of IRA and income levels. Please consult with your IRA custodian to learn of any contribution limits you may be subject to.
No. As part of the rules from the IRS regarding precious metals IRAs, we, as the dealer, MUST ship the products to an approved IRA depository, who then holds the metal until the time you are ready to liquidate the position.
You can liquidate or take possession of your metals at any time, however this is considered a distribution and there may be tax implications involved. We recommend speaking with a tax professional before making this decision.
Get Started Today: Open or Rollover a Precious Metals IRA Account
American Federal is not a Financial Planning Institution. We always recommend consulting a Financial Advisor before making any decisions regarding a Precious Metals IRA.