How to Know if Your Precious Metal IRA is Backed by Physical Gold and Silver

In addition to gold, silver, palladium and platinum, the IRS also approves certain standard criteria for inclusion in precious metal IRAs. For example, gold must be 99.5% pure, silver must be 99.9% pure, and both platinum and palladium must be 99.95% pure. The only collectible coins allowed in an IRA account are American Eagle vouchers issued by the U. S.

UU. You can't contribute precious metals that you already own to your retirement account. There is no such thing as a “free” or “no-fee” self-directed retirement account. The gold company offering the promotion pays your account fees, but they can do this because they charge more for their metals.

Most websites that “review” gold IRA companies get paid to do so, usually by an affiliate who recommends precious metals traders who compensate them between 3 and 6% of the gross value of their account for doing so. A precious metals IRA is a self-directed IRA that allows you to hold certain types of precious metals (gold, silver, platinum, and palladium) as part of your overall asset mix. This is a type of IRA that the investor manages directly and is allowed to own a wider range of investment products than other IRAs. Funds received from an IRA are not subject to penalties or taxes, as long as they are deposited into your new IRA within 60 days.

A self-directed IRA often allows you to purchase alternative investments, such as real estate, precious metals, and cryptocurrency.After choosing a precious metals merchant or platform, instruct your custodian to purchase whatever coin or ingot products you want. This designation allows a third party, such as your metals dealer, to speak to the IRA depositary on your behalf. It's safe and effective because it allows them to get information about your account, but it DOES NOT authorize them to invest or sell without your approved permission. Your gold, silver, platinum, or palladium coins or ingots must be stored in an IRS-approved non-bank trustee to avoid self-trading regulations.Most precious metal coins are more valuable than the spot price and most likely your custodian will only provide you with the final valuation and will not consider any repurchase premiums when valuing your assets.

To obtain the highest current liquidation value for your metals, contact Certified Gold Exchange. According to Drew Feutz, certified financial planner (CFP) at Market Street Wealth Management Advisors, precious metal IRAs are more expensive than other investment options.If you want to be more easily exposed to these investments without having to open a special type of IRA or find custodians, agents and custodians, consider investing in securities such as exchange-traded funds (ETFs) or mutual funds that track indices or prices of precious metals. There may also be costs associated with storing precious metals, as well as settlement fees and transfer costs.Perhaps most importantly, withdrawing funds from a precious metals IRA allows you to keep a powerful physical asset - gold (or other precious metals) - which you can keep, sell at a later time, use as currency in times of crisis or pass on to future generations. Maximize your retirement strategy, better avoid tax penalties and take advantage of everything else a gold-backed IRA can offer with these easy-to-understand guidelines for gold IRAs.