Platinum IRA Rollover – Here in this post we are going to go over everything you need to know about Platinum IRA Rollover and other necessary knowledge that are worth knowing.
Platinum IRA Rollover – What is IRA?
Individual Retirement Account (IRA) is a tax advantaged investing tool that allows qualified withdrawals on tax free basis provided certain conditions are satisfied.
It is used to ear mark funds or retirement savings. There are various types of IRA’s. They include Traditional, Roth, SEP, SIMPLE IRA’S.
Characteristics of IRA’s
- They are tax advantaged investing tools for individuals to ear mark their retirement savings.
- The laws governing maximum contributions and income limits for IRA’s change each year.
- There is an early withdrawal penalty of 10% if you withdraw money from IRA before age 60.
- There are income restrictions for contributing to Roth IRA’s and deducting contributions to traditional IRA’s.
- IRA’S are of different types depending depending on individuals employment status and they have different tax liabilities.
Platinum IRA Rollover: How Does IRA Work?
Investment held in IRA’s encompass a range of financial products including stocks, bonds, exchange traded funds (ETF) and mutual funds. They help dictate and facilitate how the IRA works. They work as follows:
- Self-directed IRA’s can be a traditional or Roth IRA.
- Self-directed IRA’s allow investors to make all the choices and also give them access to a vast selection of investments including real estate, private placements, and tax liens.
- Traditional and Roth IRA’s are the options for individual tax payers.
- Self-employed individuals set up SEP and SIMPLE IRA’s.
- An IRA must be opened with an institution that has received internal revenue service (IRS) approval to offer these accounts. The options include savings and loan association, brokerage companies and federally insured credit unions with individuals opening with IRA brokers.
- Contributions to IRA can only be an earned income that meets IRA rules. Income from investments, child support and social security benefits don’t count as earned income.
Which of the IRA’s Works Best For You?
Each IRA has its own specifications, functions that make it distinct from each other. It is wise you consider all of them before making a decision on which to choose. The various IRA’s and their features include;
- Traditional IRA’s: Contributions to IRA’s are tax deductible depending on the tax payer income, tax filing status and other factors. It allows individuals to direct pre-tax income towards investment that can grow tax-deferred. The IRS assesses no dividend or capital gains income taxes until the beneficiary makes a withdrawal. Individual tax payers can contribute 100%. IRA Custodians including commercial banks and retail brokers, hold traditional IRA’s and place the invested funds into different investment vehicles according to the account holder’s instruction and based on the offerings available. The IRS restricts the amount that one may add to a traditional IRA each year, depending on age. The contribution limit for the 2020 and 2021 tax payers is $6000 for savers under fifty years. For aged people of fifty and above. A higher annual contribution limits apply through catch-up contribution provision allowing for an additional $1000.
- Roth IRA: They are similar to traditional IRA’s with the major difference being the way they are taxed. Roth IRA’s are funded with after tax dollars. The conditions are not tax-deductible but once you start withdrawing funds, the money is tax free. IRA’s are very essential when your taxes will be higher when you retire. There is a restriction to contributing more money to IRA even if you make too much money. In 2021, the limit for singles is $140,000. For married couples it is $208,000. The amount you can contribute changes periodically. In 2021, the contribution limit is $6,000 yearly unless you are 50 years old or older who have the option of contributing $7,000. ROTH is offered by most brokerage firms, bank and investment companies both physical and online. It can be funded from sources such as regular contributions, spousal IRA contributions, transfers, rollover contributions and conversions.
- Simplified Employee Pension (SEP) IRA: Self-employed individuals, such as contractors, small business owners and freelancers have the ability to setup SEP IRA. It follows the same taxation rules for withdrawals as a traditional IRA. SEP IRA contributions are limited to 25% of compensation or $57,000 in 2020. In 2021, it increase to $58,000. Business owners can setup SEP IRA’s for their employees. The employer deducts the contributions but the employees are not allowed to contribute to their accounts, and the IRS taxes their withdrawal as incomes.
- Savings Incentive Match Plan for Employees (SIMPLE) IRA: The SIMPLE IRA is also intended for small business and self-employed. It follows the same taxation rules for withdrawal as a traditional IRA. It allows employees to make contributions to their accounts and the employers is expected to make contributions too. All the contributions are tax deductible. The employee contribution limit for 2020 and 2021 is $13,500 in 2020 and the catch-up limit remains unchanged at $3000. Knowing all the IRA’s makes it easy for you decide the appropriate IRA that fits your status.
What are Platinum IRA’s?
They are self-directed IRA’s that hold platinum amongst other investments. These accounts allow you to buy the most prestigious metals in either coins or bars combination. The metals include gold, silver, platinum and palladium.
There is a restriction on the amount of platinum bars and coins held in ones IRA account. This restriction is created by the Internal Revenue Service (IRS) in order to meet a specific purity standards which some platinum coins and bars do not meet. These standards are not negotiable.
Platinum Requirements by the Internal Revenue Service (IRS)
There are certain conditions for an individual with an IRA account to hold a platinum bar or coin in his precious metal IRA metal account. They include:
- The most important requirement is placed on the purity levels of the platinum bar or coin. It states that every platinum bar or coin held by a precious metal IRA must contain a minimum purity level of 0.9995 or 99.5%.
- The custodian of the self-directed IRA managing the account as trustees must be an IRS-qualified custodian. You have a decision of freely choosing a certified broker or dealer who partners with either one or several custodians that can help you setup and establish your IRA vehicle with the appropriate platinum bullion.
- Investors are expected to physically keep their platinum in an IRS approved vault depository. These vaults are designed to be both safe and protected facilities for keeping precious metals. The numerous bullion dealers with work alongside the different precious metals IRA custodians and a recognized depository such as DELAWARE DEPOSITORY OR BRINKS GLOBAL DEPOSITORY.
What are the Platinum Coins and Bars approved by the IRS?
There are a couple of platinum coins accepted by the IRS as they have met all the requirements stated above. They include the following:
- American Eagle
- Platinum bullion coins
- Australian Koala Platinum coins
- Canadian Maple Leaf
- Isle of Man Noble coins
- South Africa Platinum Krugerrand coins
- Australian Vienna Platinum Philharmonic coins.
There are other coins that meet the minimum standard of fineness and are minted by the national government. They may be allowable in your precious metals IRA. You need IRS approved bullion when stacking up both old and new self- directed IRA. All numismatic and commemorative coins should be avoided for safety.
The Platinum bars also must follow the requirements stated above. The platinum bars approved by the IRA include:
✓ Valcambi Platinum bars.
✓ Credit Suisse Platinum bars.
✓ PAMP Suisse Platinum bars.
✓ Engelhard Platinum bars.
They are usually manufactured by a COMEX-approved or NYMEX-approved assayer and refining facility. This is part of the requirement to be held in your platinum account.
What Platinum Coins are not allowed in Your IRA?
Knowing the coins we can hold in our IRA is as important as knowing the platinum coins we can’t hold. They include:
➢ China Platinum Panda coins
➢ Somalia Platinum Elephant coins
➢ Switzerland Platinum Shooting Thaler coins
➢ Cook Islands Platinum coins
➢ Tonga Soul
Beware of sales representatives that try to convince you to purchase unique, limited edition and scarce coins. Most of they are not accepted by the IRS.
How do i Rollover My IRA into Platinum Coins and Bars?
Before you learn how to do rollover IRA into platinum coins and bars you must know three important questions you must answer. They include:
- WHAT IS A CUSTODIAN? A custodian is a designated financial institution e.g bank, credit union, or licensed non- bank institution that administers the client securities. The services provided by a custodian include account administration, financial transactions, tax support, and other related trust management.
- WHAT IS A DEPOSITORY? A depository is a high security private storage facility. Although a custodian is technically allowed to own or manage a depository, it is un-common. A custodian uses a third party depository making it is necessary that you select the depository at which you would like to keep your platinum bars or coins. Always inquire on whether custodians maintain agreements.
- WHO IS IN CHARGE OF THE PURCHASING? After choosing a custodian, funding your account and selecting your depository, purchasing platinum bars and coins is no different from any ordinary transaction. An order can be placed at any time and day of the year online or by phone at 361-594-3624, Monday through Friday between 8a.m and 4p.m CST. A list of information will be required. They include:
- Your IRA account number
- The name of a contact person at your custodian. The funds are in the IRA, so the custodian must be contacted for the payment. Once payment has been received, shipping to your depository follows. Once you have answered all these questions you can proceed to know how to roll over IRA into Platinum bars and coins. In order to create a rollover on an IRA into platinum bars or coins, you must first pick a custodian of your choosing. Once, you have gotten your custodian, your account must be funded with your custodian will issue a bank wire payment on your behalf and your platinum coin or bars will be shipped to your depository.
Platinum IRA Rollover – What are the benefits of Investing in an IRA Approved Platinum?
There are a range of benefits gotten investing into platinum. These benefits include:
- The accounts are never dollar-dominated as with other kinds of American retirement savings like 401’s.
- The on-going decline of the American dollar will not affect the value of the platinum you hold.
- When the dollar continues depreciating in value, investors seek out precious metals as a means of safeguarding the value of their assets against inflation and depreciation.
- When the dollar declines in value, the prices of platinum goes up conversely.
Our Recommended Companies to help you Purchase Your Platinum.
We highly recommend two companies, which are –
- Augusta Assets Company.
- Bullion Vault Company.
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