Why not add Gold and Silver to your IRA account

Tax Payer Relief Act 1997 made it possible for individuals to add precious metals to their Individual Retirement Accounts. This includes gold, silver, and platinum. To diversify their investment funds, some account owners place gold ira. In general, gold prices rise as stock prices drop. This can increase your portfolio’s value during a weak period in the stock market.

These are the steps:

1. If you don’t have the right account, ask your IRA trustee if they can help you add gold. Some plans won’t allow you to do this. You will need to create a new IRA in silver-gold.

2. Look for a custodian with extensive experience in managing gold-silver IRAs. It is possible to add gold or silver to all types of IRAs. This includes Roth, traditional, simplified incentive match plans for employees (SIMPLE), and simplified employee pension plans (SEP).

3. To open a Silver-Gold IRA account, you must send your signed paperwork to the new IRA custodian. You will be charged a storage fee for any coins of silver or gold you keep in your account. The current IRS rules require that your gold be kept in a designated depository. It must be located somewhere other than the location of your IRA Custodian.

4. You can transfer funds from your bank to your IRA account in order to fund your initial gold account. The custodian can help you roll over funds from a 401k or company retirement account. This is very simple and can be completed in one day.

5. You might want to know if gold mining stocks are for you or silver and gold coins. Your custodian will then be able to purchase these items from your account.

Current Tax Rules: Precious metals in IRA Accounts

1. Collectibles and Investments
The IRS prohibits the purchase of collectible coins through an IRA account. A distribution is an amount equal to the purchase price of any collectible coin purchased with funds from your IRA. The IRS will add the distribution on to your gross earnings and penalize you 10 percent if your age is under 59 1/2.

2. Minted coins are an exception
U.S. minted coin are the only precious metals allowed with IRA investments. To be eligible, coins must contain at least one-quarter of a gram of either platinum, silver or gold. To be considered gold coins, the amount of gold must not exceed one-quarter, one-10th, one/half, or a full one-ounce combination. Acceptable silver coins minted as one-ounce bullion coins are: To avoid a penalty, coins not listed as qualified minted investment by IRA regulations should be purchased with funds other than your IRA and kept outside of your IRA account.

Your IRA Custodian
3. The IRS will report all investments, contributions and distributions to any IRA account to any custodian. The IRS doesn’t regulate what investments investors can make. The account custodian will decide what investments the account can allow. It is vital to remember that coins that are designated precious metal must only be purchased through a precious metal IRA. This is also known as a “gold IRA”. Anyone should be able and willing to help their account custodian to make the proper investments to avoid being penalized. It is a bad idea to buy precious metal coins from an IRA account that’s not authorized. This could lead to a distribution which can be taxable and may result in your IRA losing protection. Make sure you read through the IRA rules before making any mistakes. Many investment advisors encourage the use of an IRA account that allows a person accumulate profits tax-free over the course of time.