Tax Payer Relief Act (1997) made it possible to include precious metals in Individual Retirement Accounts. This includes silver, gold, and platinum. Some account holders hold gold in their IRAs as a means to diversify investments funds. As a general rule of thumb, gold is more expensive when stock prices decline. In weak periods for the stock markets, this can boost the value your portfolio. You can get the best gold IRA company in this sites.
What are the Steps?
1. Talk to your IRA Custodian about whether you are eligible for the type of account that allows you to add Gold. Some plans prohibit this. In these cases, you’ll need to set up a new Silver-Gold IRA.
2. Choose a custodian experienced in administering gold-silver IRA Plans. It is possible add silver and/or gold to most types IRAs.
3. To open a IRA with silver-gold, please send the signed paperwork along to your new IRA Custodian. Usually, charges include a fee to store any gold or silver coins in your account. Under current IRS rules your gold must be stored in a depository that is approved by the IRS. It should be in a different location than your IRA’s custodian.
4. To fund your first account with gold, transfer funds to your IRA from your bank account. Your custodian is able to assist you with rolling funds from a company retirement account or 401(k). It is easy and can be done within one day.
5. You may wish to determine whether you would like to purchase gold mining stocks or gold and silver coins. To do this, inform your custodian.
Current Tax Laws RE: Precious Metals In IRA Accounts
1. Collectibles are a good investment.
According to the IRS, collecting coins is prohibited through an IRA account. You can purchase any collectible coins from your IRA with the same amount that was used to purchase them. The IRS will add this distribution to your gross Income on your tax form and penalize you 10% if you’re under the age of 59 1/2.
2. Minted coins are an exceptional exception
U.S. minted dollars are the only coins that allow precious metals to be included in IRA investment plans. To be eligible for IRA investments, the coins must contain minimum amounts of gold, silver and palladium. The gold coins must contain at least one-quarter of a tenth, one quarter, one-half, or a whole-one-ounce mixture. Silver coins of one-ounce are acceptable, and can be designated bullion. To avoid a penalty on any coins not designated as qualified minted, investments by IRA rules, they must be purchased using funds outside your IRA.