Precious Metals IRA Depository
An Individual Retirement Account, or IRA, provides investors with an avenue for investing in physical gold, silver, and platinum. To comply with IRS regulations, any precious metals purchased through an IRA must be stored by an approved depository.
Start the process off right by choosing an IRA custodian, who will work alongside both your dealer and depository to manage your account.
What is a depository?
Depository services play a pivotal role in your precious metals IRA. In accordance with IRS regulations, physical precious metals must be stored at an approved depository that meets IRS standards and restrictions. Your IRA custodian can purchase precious metals on your behalf before shipping them directly to the depository of your choice, helping avoid having to take physical possession of your precious metals which would constitute a taxable distribution.
Precious metals IRAs provide investors with an alternative investment vehicle for diversifying their retirement portfolio with tangible assets like gold. Similar to traditional IRAs that invest in stocks and bonds, precious metals IRAs allow you to stash tangible precious metals that some consider an economic hedge.
To open a Precious Metals IRA, it’s essential that you find a trusted administrator. At IRA Innovations, we specialize in handling all the unique needs associated with precious metals IRAs; from selecting and managing a depository of your choosing and procuring appropriate bullion to producing valuation reports for IRS reporting purposes.
How does an IRA depository work?
An IRA depository serves as the physical location for precious metals purchased via individual retirement accounts (IRAs). Precious metals are an attractive investment choice that does not incur as many taxes than regular investments; due to IRS regulations, precious metals stored through an IRA must be stored by a third-party storage facility to prevent self-dealing; your custodian will assist in finding suitable storage options for your precious metal investments.
Your IRA custodian will use funds in your IRA to purchase precious metals from dealers such as SilverTowne. As your IRA owns these assets, not you, it will purchase and ship them directly to a depository in your name. Be sure to research both dealer and depository carefully to ensure they meet your investment needs; often precious metals can be less costly than traditional investments in IRAs.
What are the benefits of using an IRA depository?
IRAs allow individuals to diversify their savings portfolio, gain access to an ever-increasing asset class and expand their retirement nest egg. But they don’t always work as planned.
Once you die, managing the accounts of your heirs’ IRA accounts may prove to be challenging if you use a Pay-on-Death (POD) account with multiple beneficiaries. Heirs may move, divorce or contemplate divorce proceedings, give birth or even file bankruptcy; additionally it can be hard to keep track of RMD deadlines and withdrawal requirements from an IRA account.
Depository service providers can be an ideal way for IRA owners to avoid this dilemma and ensure all IRS restrictions are adhered to while providing security, convenience and service. Investors should seek dealers that possess all required licenses, registrations, insurance and bonding coverage as well as seek the advice of respected industry trade organizations when selecting an ideal depository for their gold IRA investments.
How do I find an IRA depository?
A precious metals IRA is an individual retirement account that allows investors to invest in gold, silver and other precious metals. Unlike traditional IRAs, precious metals IRAs allow self-directed investing of unconventional assets such as precious metals or real estate.
For your precious metals IRA to start operating properly, it must first be opened with a custodian. A custodian acts as the asset manager who monitors all activity with your account including rollovers, transfers and distributions.
When selecting a custodian for your precious metals IRA, it’s essential to prioritize both security and convenience. Some popular choices are Brinks Global Services and Delaware Depository Service Company; both offer multiple locations nationwide with secure storage facilities featuring Lloyd’s of London insurance coverage of up to $1 billion per package shipping, meet IRS minimum storage standards, and are approved as NYMEX/COMEX depository by CME Group.
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