Investing in Precious Metals IRAs: What You Need to Know

Any IRA is legally authorized to buy gold and other precious metals. However, most major custodians, such as Charles Schwab, Merrill Lynch, and JP Morgan Chase, don't offer physical precious metals as an investment option. Most traditional custodians are structured to hold only paper assets and are structured as managed funds. Physical precious metals are a self-directed investment and generally require a custodian who offers self-directed IRA investments.If your depositary doesn't offer precious metals as an investment option, we can help you initiate a reinvestment or a direct transfer to a custodian that does.

A reinvestment or direct transfer is a non-taxable event. An IRA transfer is a direct means of transferring funds from an IRA from one depositary to another. It is usually done through a transfer that is first signed by the account holder and then sent from the receiving depositary to the releasing depositary requesting a partial or full transfer of the funds or assets of the IRA.Funds are sent directly from one custodian to another with no tax consequences. Reinvestment is the preferred and most efficient method when moving from similar accounts, such as from one traditional IRA to another.

There is no limit to the number of transfers that can be made in a calendar year. Reinvestment generally occurs when you transfer between two different accounts, such as from a 401(k) to an IRA.A transfer can be direct, meaning that it is sent directly from one custodian to another, or indirect, meaning that funds are sent from one custodian to the account holder. The account holder then has 60 days to transfer these funds to another retirement account, such as an IRA. If the account holder doesn't move the funds within 60 days, they will be taxed on those funds and possibly penalized for withdrawing them early.

This is also known as a 60-day renewal.You are only allowed a 60-day renewal in any 12-month period. Gold IRAs may be a good idea depending on a person's financial and investment profile. Gold IRAs will help diversify a person's retirement account and will serve as a hedge against certain financial factors. It's recommended to keep only a small portion of your retirement assets in gold IRAs.If you decide to invest in a precious metals IRA, you should do so conservatively.

Depending on your financial situation, most experts recommend that you invest no more than 5 to 10% of your retirement funds in precious metals. Since they involve buying and storing valuable physical metals, you should consider a few additional things when thinking about precious metal IRAs. You can't, for example, store the precious metals you've invested in your IRA in your own home, according to IRS rules.Because factors are constantly evolving and prices fluctuate depending on the market, call Allegiance Gold directly for real-time prices and to find out how you can liquidate your precious metals from an IRA or personal stake. The IRA depositary will handle the payments and the dealer will send your precious metals to the warehouse.

Precious metal IRAs may be a viable option for some investors concerned about inflation and market volatility.IRA holders are allowed to use the funds in their IRA account to purchase precious metals approved since 1998, following the passage of the Taxpayer Assistance Act of 1997.They are allowed to trade, transfer, redeem, or sell the precious metals in their IRA at any time without any tax implications.A silver IRA is also a traditional IRA, a ROTH IRA, a SEP-IRA, a SIMPLE IRA, or an inherited IRA that is self-directed by the account holder and that has the permitted forms of physical silver coins or ingots. A palladium IRA is a form of self-directed IRA or precious metal IRA that is invested in certain permitted types of physical platinum coins or ingots. Ideally, you should keep your gold and other precious metals in your gold IRA until you retire, as that's what these accounts are designed for.A platinum IRA is an IRA in which some of your assets are invested in forms of platinum ingots approved by the IRA.You can't add gold or precious metals to your gold IRA yourself, even if you already own IRA-eligible metals or plan to buy them for investment purposes. Here's what you need to know about the rules and regulations of gold IRAs to invest in precious metals for retirement and use tax benefits.

Precious-metal IRAs generally only make sense if you have a strong portfolio and want to diversify your investments by reserving a small portion for physical gold, silver, platinum, or palladium.Depending on the storage facility you select, you can usually schedule an appointment to really see your precious metals. If you are significantly late with your payments, your depositary may be able to sell some of the precious metals in your account to pay for delinquency fees.