Precious Metals IRA Rollover – Precious metals are natural substances of immense aesthetic, economic value which are rare and provide underlying benefits to industries, individuals and also have an important historical value.
The three most sought after trading precious metals are gold, silver and platinum. You may be asking yourself what about diamonds and rubies.
They are also precious metals but most individuals with IRA’s can afford to purchase them because their value is much more than the enlisted precious metals. Platinum, gold and silver are easier to acquire keep and trade using your IRA’s and they are readily available.
What Should I Know About IRA’s? [Precious Metals IRA Rollover]
Individual Retirement Account (IRA) is a retirement plan introduced by financial institutions in the US to secure the future of employers and employees against retirement.
It also gives room for investment of those funds before and after retirement. There are four types of IRA’s. Most of them are alike or similar but there is a distinct property about each of them.
It is important to know the types of IRA’s because some are opened by your employees for you. This allows you decide how you want to invest and the freedom you have to invest. The IRA’s available include:-
Traditional IRA: They give individuals the freedom to direct pre-tax income towards investment that grows tax- deferred. Dividend and capital gains are not looked at by the internal revenue service until the due date of withdrawal at the retirement of an individual. Individuals are allowed to contribute 100% and those contributions are tax deductible depending on the remuneration and tax filing status of the person.
Simplified Employee Pension (SEP): They are usually setup by entrepreneurs like contractors and some business owners but they can be setup for employees but you find most of them amongst small business owners. Contributions to this pension is limited to 25%.
Savings Incentive Match Plan For Employees (SIMPLE): This pension fund is usually setup by business owners and other entrepreneurs. This fund allows both employer and employees contribute to the fund unlike other funds where only one party is allowed to contribute. The contributions are usually assessed by the IRS and the taxes are deducted.
ROTH: Contributions to this fund are not assessed and deducted. If you ever decide to start withdrawing before retirement the funds are tax free but after retirement you will assessed and your income tax will be deducted. Aside these it is very similar to the traditional IRA. They are funded with pre-tax dollars. Almost every employee, employer or retired person in the U.S have one of these accounts, knowing which one you own is important when making investment decisions, it gives you a clue of where you can go and where you can’t.
What Is A Rollover? [Precious Metals IRA Rollover]
This is a transaction that involves the transfer of funds from your IRA to you by your custodian which in turn you deposit in a separate account where you use to pay for a precious metal.
This transaction involves two three parties, your custodian, yourself and the precious metal company you are interested in purchasing their metal. The account owner is responsible for picking a custodian.
The custodian plays a vital role in directing, selecting, managing and providing investment decisions based on the risk taking level of the owner.
To achieve a successful rollover, you need these three people. It is important you know your role, the custodian and the precious metal companies role. Their roles and responsibilities include:-
1. The Account Owner – The account owner’s role here is picking a competent and certified Custodian. It is the most important process of investing using your IRA because the custodian influences your financial and legal decisions. It is important you shortlist and pick the most appropriate custodian.
2. The Custodian – They are in charge of managing the agreement and forms relating to the rules and regulations governing the Internal Revenue Service.
- They are in charge of protecting the privacy of IRA holders using an accepted means by the IRS.
- They accept information, contributions, rollovers and transfers other IRA’s.
- They implement the ideas and investment instructions as directed by sending funds from the owners IRA to the client selected for patronage.
- Ensures the IRA follows and executes the Anti-Money Laundering Program (AMLP).
- They keep record of information on investment like subscription agreements, promissory notes, offering memorandum, certificates and other evidence of investment ownership.
- They are in charge of tax reporting of IRS forms as required by the Internal Revenue Service (IRS). They align with investment sponsors in purchasing, sale and liquidation of investments as directed by the account owner.
- They keep the account owner in check by ensuring he complies with Federal and State regulations.
- They provide the statement of account of the owner of the IRA when officially requested.
As stated earlier be confused he can do almost anything. It is important you also know what they can’t do. Here is a list of what they cannot do –
- They don’t act as a legal, investment and tax advisor.
- They don’t act in due diligence for the IRA account owner on in any investment decision.
- They don’t determine the worthiness of any investment for the IRA owner.
- They don’t determine if a transaction is false as outline in the IRS code section.
It looks a bit confusing but if you take a close look at their functions and their prohibitions they are very distinct. Choosing a good custodian cannot be over emphasized.
3. The Precious Metal Company – Their role is to stick with the agreement made by them and the IRA account owner, deliver the services and products at the time specified in the contract. To ensure they meet the demands of the IRA account owners always.
=>> Click here to know more about the Benefits of Gold IRA Rollover.
What Are The Types Of Precious Metal IRA’s? [Precious Metals IRA Rollovers]
The most common precious metal IRA’s available to IRA holders are gold, silver and platinum IRA’s. They are alike but have some distinct properties. Platinum occurs in various forms like palladium but they all fall under platinum IRA’s.
It is important to know about the precious metals you could own in your IRA portfolio before you invest. It is impossible to own physical gold with a normal IRA that is why it is important to open a precious metal IRA so you can trade and store physical gold
1. Gold IRA: This type of IRA enables you purchase both physical gold and gold securities like gold ETF bullions. When opening a gold IRA, it is important to select a good custodian, a good gold IRA Company and a secure storage facility. Investing in gold securities like ETF’s, bonds and stocks may eliminate the high cost of gold storage. The IRS approved physical gold in coins and bars include: American Gold, Canadian Gold Maple Leaf, Australian Philharmonic and Credit Suisse Gold Bar. The Gold IRS certified companies include: Regal Assets, Orion Metal Exchange, American Hartford Gold Group, Oxford Gold Group, Patriot Gold Group, Monetary Gold, Birch Gold Group, Red Rock Secured, Augusta Precious Metals, ITrust Capital Gold and Lear Capital. If your interest is gold with this information you can start investing.
2. Silver IRA: They are self-directed IRA’s which provides alternative personal investment opportunities for IRA holders. Just like gold, investment in silver comes in two forms, investment in physical silver and silver related securities in form of ETF’s, stocks and bonds. The IRS approved silver coins and bars include Regal Assets, American Eagle, Austrian Philharmonic, Canadian Maple Leaf silver coins. The prices of coins and bars differs bars are usually less expensive compared to coins. They can be gotten in Royal Canadian Mint, Perth Mint, Royal Mint and Sunshine Mint.
3. Platinum and Palladium IRA’s: Palladium is the costliest precious metal currently due to its usefulness in the auto mobile industries and also the jewelry industries. They occur in physical form and securities. In the case of platinum, you can pick which one is a better investment both its ETF’s and physical bars and coins are sought after because of the demand. The problem most people face is storing them but the demand doesn’t allow you keep it for a long time. IRS approved platinum and palladium include Regal Assets, Valcambi Platinum bars, Credit Suisse Platinum bars, PAMP Suisse Platinum bars and Engelhard Platinum bars. The best Platinum and palladium companies are Regal Assets, American Eagle, Platinum bullion coins, Australian Koala Platinum coins, Canadian Maple Leaf, Isle of Man Noble coins, South Africa Platinum Krugerrand coins and Australian Vienna Platinum Philharmonic coins.
The IRS approved precious metals for trading based on purity. It is important to check and test for purity before purchase. The minimum purity for any IRS approved precious metal is 99.5%.
How Do I Setup A Precious Metal IRA and Rollover
In summary there are steps you should follow to open a precious metal IRA of your choice and how to rollover funds to invest in your precious metals IRA. They include
- Choose a custodian
- Choose an approved precious metal dealer.
- Make a decision on the type of precious metal and also the kind of precious metal eg do you want it in physical form or in securities.
- Choose a secured depository.
- Contact your IRA custodian stating the precious metal, the cost and the precious metal company.
- The custodian sends money to a different account which you will use to pay for the precious metal.
- You will indicate when and where it should be sent, there are options for storage if you don’t have a secured depository.
What Are The Benefits Of Rolling Over Your Funds Into Precious Metal IRA’s
- Diversification and protection allowing you to spread your wings and also providing a hedge against adverse economic recessions.
- The transparency and direction of the financial system.
- The best and easiest way to invest in precious metals.
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