precious metal ira

Everything You Need to Know About Investing in a Precious Metal IRA

VWB Blog 2 years ago 132

Are you considering precious metal investing with an IRA?

When you invest in an IRA, the IRS doesn’t classify profits made from the IRA as taxable income with a few caveats. The money that is making the gains has to be in the account for at least five years and you have to be at least 59 1/2 years of age or retired before withdrawing the money.

Investing your retirement funds into a precious metal IRA can be a very smart financial decision if you do it right. Keep reading to learn everything you need to know about this type of investment.

What is a Precious Metal IRA?

A precious metal IRA is a type of self-directed individual retirement account meaning it’s directly managed by the holder of the account. It facilitates long-term investments in precious metals like gold, silver, platinum, and palladium.

These metals have historically gained in value so they reduce your possible investment risk and volatility of the market. Many people consider precious metals in an IRA a hedge against inflation.

Why Should You Include Precious Metals in an IRA?

When you set up an IRA or any investment account, it is never a smart idea to “put all your eggs in one basket.” Many investors diversify their accounts by including precious metals.

Precious metals are also less volatile. They don’t experience drastic price fluctuations like cryptocurrencies might. Precious metals act as a tax shelter for capital gains in the event of a depression or recession.

A Custodian or Trustee?

When you decide to invest in a precious metal IRA, you have to use a trustee or custodian associated with an approved depository. Once you purchase the precious metals, they will be transferred to the account with your custodian and into their depository.

You should take the time to seriously consider the custodian with whom you partner to hold the precious metals. If you plan to add precious metals as part of your IRA, you should review precious metal IRA companies before proceeding.

When setting up an IRA, you want to work with a precious metal IRA company you can trust. Check out this review of Lear Capital Gold and learn more about the company that can help you set up a precious metal IRA and get the precious metals you need to back it up. You can do it all in one place with this precious metal IRA service.

IRA Restrictions

There are certain requirements listed by the IRS. The metals have to have certain purity. Gold must be 99.5%. Silver must be 99.9%. Platinum and palladium must be 99.95% to qualify.

Precious Metal IRA

Taking an investment opportunity to put your money in a precious metal IRA gives you the security of owning precious metals coupled with the tax benefits of an IRA. Set up a consultation with your financial advisor to learn more about how precious metals affect your retirement portfolio.

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