How Do I Put Precious Metals in an IRA?
Are You Looking to Add Precious Metals to Your Retirement Portfolio? A solution may exist for those interested in investing in precious metals through an Individual Retirement Account with an approved custodian and depository.
This process works like this: once funds have been deposited into your new IRA, then its custodian sends that money directly to a depository where your metals will be purchased.
Choose a Custodian
Selecting an ideal custodian is key in setting up a precious metals IRA. They will be responsible for purchasing, tracking and storing your investments while being familiar with IRS rules related to metals investments.
Custodians should provide support throughout the purchasing process, from providing comprehensive online websites that answer questions to easy navigational interfaces that show costs associated with accounts.
Many investors choose to diversify their precious metals IRA portfolio with other metals, like platinum. Your custodian should be knowledgeable in helping you locate products which meet the required fineness levels for eligibility within an IRA account.
Most IRA custodians work with bullion dealers approved by the IRS to ensure all transactions adhere to IRS rules and safeguard your precious metals by depository locations that meet these guidelines.
Decide on a Depository
A precious metals depository is a third-party storage facility that meets IRS regulations for your IRA custodian to purchase physical gold and silver from approved suppliers, then ship directly to a depository of your choice.
Depositories approved for use with Individual Retirement Accounts must meet certain standards of security, quality, and regular audits to remain compliant. Consider choosing a depository which offers security and insurance on your assets as well as an explanation of fees charged.
A reliable IRA precious metals depository provides your assets with an environment designed to protect and safeguard them, with easy withdrawals during normal business hours or shipping them directly to a third party upon your request. Keep in mind, however, that possession of your precious metals cannot be claimed until the age of 59 12; those aged 59 1/2 or later can make in-kind withdrawals without incurring penalties.
Select the Metals
Gold is an attractive precious metals IRA investment option because of its status as a “safe haven.” Although gold can provide relief during times of market instability, investors should remember that it does not pay dividends or generate income and should treat gold like any other non-liquid investment.
After selecting your custodian and depository, the next step should be selecting precious metals you wish to invest in. Your precious metals IRA provider should be able to offer an assortment of gold, silver and palladium coins, bars and rounds which meet IRS guidelines.
Care should be taken when selecting the dealer, depository and administrator of your IRA; some self-directed administrators limit your options when it comes to dealers and depositories approved for an IRA. IBX Precious Metals IRA Rollover allows you to easily convert all or part of a traditional, Roth, SEP or SIMPLE IRA account into physical Gold, Silver, Platinum and Palladium coins and bars while still enjoying preferential tax treatment.
Complete the Transaction
IRS rules regarding physical storage of precious metals within an IRA account are very specific; your investment must be held in an insured depository. As JM Bullion works with numerous self-directed IRA custodians, we can recommend one.
Once you have selected a dealer, the next step will be selecting metals from among those available to you. A good way to select these metals would be consulting your IRA custodian on what options are available as well as which have the best reputation; alternatively you could consult industry trade groups such as American Numismatic Association and Industry Council for Tangible Assets for affiliation.
Precious metals can make an excellent addition to an investor’s retirement portfolio, but should only be seen as part of their total portfolio. Although expensive compared to some alternative investments such as stocks or bonds, precious metals do provide some inflation protection.
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