SDIRAs differ from traditional IRAs in that they allow investors to invest in alternative assets like real estate and precious metals; however, these investments may involve greater complexity and illiquidity than what traditional IRAs may allow. Requiring more expertise than most investors possess, navigating IRS rules can be costly. 1. Custodian Fees Most SDIRA custodians charge one-time setup fees, an annual asset maintenance fee and transaction fees when purchasing or selling investments such as real estate, private loans, promissory notes,...
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As with the 401(k), the Internal Revenue Code also sets forth rules for another employer-sponsored retirement savings vehicle known as a simplified employee pension (SEP) IRA. Unfortunately, many investors are unaware that they can purchase alternative investments like real estate and precious metals within an SEP IRA – though IRS Code 408m3 restricts certain types of investments from being eligible. What is a 408(k) plan? A 408(k) plan is an employer-sponsored retirement savings account similar to a 401(k). Also known...
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Withdrawals made before age 59 1/2 will usually incur income tax and a 10% penalty; however, exceptions exist, including first-time home purchases and qualified higher education expenses. Traditional IRAs are funded with pretax earnings while Roth IRA contributions come out of after-tax dollars, though there are ways you may be able to avoid taxes when withdrawing your savings from either one. 1. Take a Distribution in a Low-Income Year Once you turn age 59 1/2, withdrawals from traditional IRAs can...
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As the saying goes, only death and taxes are certainties; unfortunately disability benefits may be tax-exempt in certain instances. SSDI taxes typically only become due when an individual’s combined provisional income (composed of half their Social Security benefit plus all other income sources) exceeds $25,000 for single filers or $32,000 for married couples filing joint returns. What is the taxable amount of my SSDI benefits? The Internal Revenue Service determines a beneficiary’s taxable SSDI benefits by adding half of their...
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An Individual Retirement Account, commonly referred to as an IRA, is a savings account designed to store investments for retirement. IRAs provide an option for those without workplace retirement plans such as 401(k). Each type of IRA may vary; some can hold investments pre-tax while others offer tax-free contributions. Opening an Individual Retirement Account (IRA) with most banks and brokerage firms typically takes only minutes, as does the opening process itself. Contributions are tax-deductible Traditional IRAs allow their owners to...
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Beneficiaries of an inherited IRA must make difficult decisions regarding how best to handle their inheritance. Working with a financial professional who specializes in such accounts is usually advised. Understanding your options and requirements is paramount; taking a lump sum distribution could increase your tax liabilities while jeopardizing future opportunities for tax-deferred growth. Roll it Over Assuming you are the Surviving Spouse of an individual who passed away, they can transfer an inherited IRA to your account at the same...
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Are you curious as to why different coins containing the same amount of gold (Krugerrand, Maple Leaf or US Eagle) command different prices? The reason lies within an element called premium. How much you pay for precious metals purchases ultimately depends on your investment goals and liquidity needs, with this article discussing some of the main elements that impact premium pricing for bullion products. Supply & Demand One oz gold coins are one of the top choices for investors seeking...
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Self-directed IRA custodians allow investors to expand their retirement investment options beyond real estate, precious metals and crypto. But investing in these types of assets may pose unique risks. Investors must take care to abide by any applicable rules, such as the self-dealing rule (which prohibits an IRA from buying and selling assets it owns with its own funds), when conducting their investments. Furthermore, it’s essential that independent checks be performed on prices and asset values listed on account statements...
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Warren Buffett has long criticized gold as an investment because it doesn’t meet his criteria: products with stable profits that offer growth potential are his preference. Berkshire Hathaway’s sudden investment in gold mining companies such as Barrick Gold seems unexpected and out-of-character. Value Investing Warren Buffett’s value investing approach has propelled him into one of the wealthiest individuals on Earth. This philosophy prioritizes purchasing top quality companies at fair prices and holding on for long term gains; thanks to this...
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IRS-approved depository facilities must adhere to certain security and insurance standards when housing gold coins and bullion eligible for retirement accounts (IRA). Some investors seek the peace of mind provided by physically owning their assets, while for others a bullion depository might not be appropriate. IRA custodians IRA custodians include banks, trust companies, credit unions, brokerage firms or any other IRS-approved entity that manage self-directed IRAs. While these custodians generally charge fees to store precious metals investments, they also provide...
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