Articles Categorized in: Blog
As part of leaving or retiring from a company, it may become necessary to rollover and transfer retirement assets into an IRA. When done properly, rollovers are tax-free. Direct rollover (also referred to as trustee-to-trustee transfer) is one way of moving old 401(k) funds into an IRA account and has many advantages. Tax-Advantaged Investments Individual Retirement Accounts (IRAs) are tax-advantaged accounts that allow investors to save tax-deferred and receive tax-free distributions at retirement. Furthermore, these IRAs provide generational success by...
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Federal tax laws mandate precious metals dealers to report sales of certain types and quantities of bullion to customers, with reporting being required if receiving single cash payments of $10,000 or more from transactions. Profits from physical gold and silver sales fall under a category known as collectibles, which attract a higher tax maximum rate than earned income. Maintaining careful records while consulting knowledgeable professionals helps ensure compliance. Reporting Requirements Though no central database tracks all precious metal purchases and...
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Withdrawals from traditional or Roth accounts will incur income taxes and a 10% penalty, unless an exception applies. Accurate tracking of your IRA’s basis requires filing Form 8606 accurately and meeting certain eligibility requirements. Exemptions to the penalty tax vary by account type and purpose, such as those who purchase their first home, pay medical insurance premiums when unemployed, or incur qualified education expenses. Taxes on IRA withdrawals Taxes payable when withdrawing funds from an IRA or another tax-favored account...
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Physical gold and silver investments cannot be held in traditional or Roth IRAs; you will have to utilize either a self-directed IRA, or switch your existing retirement account over to one which accommodates these assets. Gold IRAs require special custodians who specialize in precious metals and are approved by the IRS, typically charging setup, annual storage and custody fees. Taxes While a gold IRA may seem like an attractive investment vehicle, it has certain tax implications and restrictions that should...
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Rollovers can be an efficient and cost-saving way to move retirement savings from one employer’s plan to the next. An informed move could save tens of thousands in fees alone. Direct rollover transfers funds directly from an old 401(k) into your IRA without the need for you to intervene; indirect rollover typically involves receiving a check that must be deposited within 60 days. 1. Contact Your Employer’s Plan Administrator Before switching jobs, it’s essential that your old employer receives your...
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From an employee’s point of view, both options are equivalent: both can be transferred into an Individual Retirement Account (IRA) upon departure from your employer. Like 401k accounts, 403b accounts allow employees to contribute pretax money through payroll deductions. Once invested, these funds grow tax-deferred until being withdrawn in retirement and taxed accordingly. Benefits Some 403(b) plans offer participants an easy and effortless way to save for retirement by automatically deducting a percentage from each paycheck, providing assurance they are...
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Silver is considered a safe-haven asset and may help diversify your retirement portfolio. Before investing in a silver IRA, make sure that you understand its rules and regulations as they pertain to precious metals IRAs. The IRS has established strict rules about which precious metals and silver may be held in an Individual Retirement Account. When searching for a dealer to store your precious metals in an IRA, ensure they offer positive customer reviews, full insurance and secure storage facilities....
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If you are considering adding gold investments to your retirement portfolio, it is essential that you gain a firm grasp on their operation and be ready to monitor them on an ongoing basis, including analyzing fees, tracking performance levels and avoiding risky investments such as futures contracts. Gold investments come in many forms: physical gold, leveraged ETFs and mutual funds that hold shares of gold-mining companies are among them. Just keep in mind that investing in gold doesn’t offer immediate...
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Gold can provide your portfolio with stability and help defend against inflation, acting as an insurance against stock fluctuations. A direct rollover allows for tax- and fee-free conversion. Opening a self-directed gold IRA involves opening one, transferring funds from your traditional IRA, purchasing and storing precious metals in an approved depository and complying with IRS regulations. A good gold IRA company should handle most of this paperwork for you while assuring compliance. Taxes When converting an IRA to gold, it...
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IRS has specific rules about which precious metals can be included in an Individual Retirement Account (IRA). To ensure compliance, it’s crucial that your Self-Directed Precious Metals IRA (SDIRA) works with a custodian that understands these regulations. Precious metals can provide your retirement portfolio with protection against inflation and currency depreciation, providing it with more security against inflation and currency devaluation. To be eligible, coins and bars must meet specific fineness standards and be stored with an authorized depository. Gold...
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