How Do I Add Precious Metals to My IRA?
Many investors are turning to precious metals IRAs to diversify their retirement portfolios, as these tangible assets have traditionally performed well even during challenging economic environments.
Due to inflation and political and economic crises, precious metals IRAs are growing increasingly popular among investors looking to protect their retirement savings from inflation and political unrest. Furthermore, the process is straightforward for those with existing IRA accounts.
1. Open a Self-Directed IRA
An investment in physical precious metals offers numerous tax advantages. Because the IRS classifies them as collectibles, their sale profits are taxed at a much lower rate than stocks or mutual funds.
Precious metals tend to rise in value when the stock market falls, making them an appealing investment option but be wary not to make them your sole focus — these investments tend to be more costly and riskier.
After opening a self-directed IRA with a precious metals specialist, their custodian will purchase and store metals on your behalf in a secure depository. When selecting a storage facility it’s essential to look for one with insurance coverage and segregated storage so your assets aren’t mixed in with those of other investors.
2. Decide on a Custodian
As with any investment vehicle, selecting an IRA custodian is the initial step to creating one with precious metals. When looking for one to invest in, look for transparent fees and support of all investment types – transaction, custodial and physical asset storage fees are important aspects to keep an eye on when considering your costs.
Tax implications should also be carefully considered when choosing an IRA-approved metals investment. Traditional IRA contributions are made using pretax dollars, so any taxes due will only be assessed on withdrawal.
If you withdraw metals prior to turning 59 1/2, they could incur additional taxes and penalties. To avoid this possibility, only purchase IRS-approved coins and bullion that meet purity standards, and make sure your dealer offers secure storage at an insured depository.
3. Select a Dealer
An individual investing in precious metals IRA can take advantage of physical gold, silver, platinum and palladium investments as part of their retirement savings to diversify against inflation and economic instability.
Selecting a dealer carefully is of utmost importance, since the IRS stipulates that IRAs only hold precious metal coins and bullion products that meet specific fineness standards. As well, consult with a financial expert in order to make sure the investment meets all the IRS criteria.
Augusta Precious Metals is an esteemed dealer that provides an expansive selection of precious metals. Their industry experts rank them highly and they’ve received hundreds of five-star reviews from satisfied customers – plus, they offer outstanding customer service! Their customer service team can assist with any inquiries or concerns.
4. Fund Your Account
Gold is an excellent long-term store of value that can protect retirement savings against inflation. Plus, its non-correlated status allows it to diversify portfolios.
Once you’ve located an ideal precious metals IRA provider, custodian, and dealer, it is time to purchase some metal. Payment can be made with cash, check, or wire transfer depending on what best meets your needs.
Once your purchase has been completed, your IRA custodian will send your metals to an IRS-approved depository. Here, you can select from various coins and bars including gold bullion/proof coins (American Eagle, British Britannia, Australian Kangaroo & Austrian Philharmonic); silver bullion coins/bars; platinum/palladium bars.
5. Make the Purchase
Once an account is open and funded, it’s time to select which metals you will invest in. When selecting an IRA-approved precious metal dealer it is important that they can meet specific purity standards set forth by the IRS.
A quality dealer should be able to guide their customers on which metals to purchase and where best to store them, providing segregated storage facilities that have insurance up to their full value of metals purchased.
Physical precious metals IRAs offer a great way to diversify your retirement portfolio; however, you should be aware that they may carry higher fees than other investments; this includes setup and transaction fees as well as custodial and storage charges.
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