Gold can be an attractive investment option, but before making any purchases it’s essential to understand its tax repercussions. Reporting precious metal purchases requires reporting to the Internal Revenue Service who has established guidelines regarding what transactions must be reported to them. Gains on gold are taxed like any other capital gain, though there may be ways to limit their tax impact. A 1031 exchange offers one such strategy for moving profits without incurring capital gains taxes. Taxes on Capital...
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If you are switching jobs, your 401(k) funds can easily be converted to an Individual Retirement Account (IRA). Many financial institutions will offer incentives in return for doing business with them such as one-time bonuses and free stock trades. Your money has several options: you could keep it where it is, cash out or roll it over into another employer plan or an IRA directly – the latter will typically avoid taxes and penalties altogether. IRA rollovers Direct rollovers transfer...
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Although investing in an IRA offers tax breaks, the government still wants its share. They require account holders to make withdrawals within certain time frames and pay taxes upon doing so. Most individuals must begin taking required minimum distributions by age 72; spouses and some eligible nonspouse beneficiaries can choose to withdraw their money over 10 years, subject to income taxes and penalty charges. Taxes on RMDs The IRS distinguishes between withdrawals and distributions from IRAs. Withdrawals occur before age...
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At some point in time, when selling gold coins or precious metals such as silver bars or coins, the key is to maximize your returns from investment. Do not fall prey to scams when selling through untrustworthy platforms such as Facebook Marketplace and eBay – here’s how you can safely liquidate your gold and silver assets. Sell to a Dealer Your precious metal investments may have taken weeks, months or even years of research and selection before being ready to...
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Gold investing can be one of the safest ways to protect your retirement savings, yet most 401(k) plans don’t allow participants to purchase physical precious metals directly. However, you don’t need to incur penalties by rolling over your 401(k). This article will explore all steps involved in this process, from selecting an IRS-approved custodian and opening an IRA account, through to rolling them back over again with minimal restrictions or penalties. How to Transfer Your 401k to a Gold IRA...
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Investment in precious metals through an IRA is an effective way to diversify your retirement portfolio and protect against inflation or increase wealth; gold and silver IRAs offer many advantages over their alternatives. The best precious metals IRA companies provide competitive pricing and buyback guarantees at highly competitive rates, without charging additional fees and providing impartial customer education. Diversification A gold IRA is a special type of retirement account that enables investors to invest in precious metals like silver. You...
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Roth IRAs provide a tax-efficient means to save for retirement; however, there may be annual limits on how much can be transferred over. Direct rollovers involve moving money directly from one pre-tax plan to another without tax withholding being withheld; indirect and 60-day rollovers usually only allow for this once every 12 months. Tax-Free Withdrawals Roth IRA investments do not subject their earnings to income taxes when you withdraw them at retirement age or earlier. Traditional IRAs require you to...
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An investment in precious metals is an effective way to safeguard against currency decline, political and financial turmoil and inflation – however, you should keep certain considerations in mind before doing so. Importantly, investments must be held in an IRS-approved depository – this can incur extra setup, transaction and storage fees. Buying Gold An Individual Retirement Account (IRA) allows you to dollar-cost-average or simply accumulate physical precious metals over time while deferring taxes on gains. A gold IRA cannot hold...
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Traditional and Roth IRAs are typically held by banks, brokerage firms and mutual fund companies. Some firms specialize in alternative investments like cryptocurrency trading or private placement securities as well. To qualify for a Roth IRA, the account owner must have earned income. These earnings could come in the form of salaries, hourly wages, commissions, tips or self-employment earnings. Custodial IRAs Custodial IRAs provide parents, grandparents and other adults a way to open accounts on behalf of minor children without...
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Your best choice for investing in an Individual Retirement Account (IRA) depends on your retirement savings needs. Traders should seek an IRA provider with low trading fees and offers a diverse selection of ETFs; other investors might like Betterment’s Robo-Advice platform or Boston-based Catch’s high-tech IRA solution as alternative investments. Merrill Edge Merrill Edge is an outstanding online brokerage for both newcomer and experienced DIY investors alike, providing them with access to an expansive array of investment options, extensive research...
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