Retirement planning can be a daunting task, especially in times of economic uncertainty and a volatile stock market. To protect against high inflation and economic instability, many investors choose to diversify their retirement portfolios with investments in gold and other precious metals. Individual Retirement Accounts (IRAs) offer tax-deferred or tax-free growth, meaning that investments made with an IRA can grow to be greater than similar investments made outside of an IRA. But what types of precious metals can you invest in with a precious metal IRA?The answer is that you can buy gold coins and ingots made of gold, silver, palladium, and other precious metals that meet certain fineness requirements with your IRA.
Home storage is not allowed when your metals are in an IRA; physical assets that belong to an IRA must be in the hands of a qualified custodian and stored in a secure deposit approved by the IRS. Many warehouses offer segregated or non-segregated storage; segregated storage means that your personal metals are identified and stored under your name. By providing diversification and liquidity without credit risk, gold can be especially attractive during periods of increased market volatility. It's now easier than ever to find a potential investment opportunity that fits your needs; visit Investment District, our online marketplace, to search for investment options from suppliers of precious metals, cryptocurrencies, loans, private equity and real estate assets. The first step is to open and deposit funds into your self-directed IRA account. This can be completed using a traditional paper application, but many people choose to use our simple application process that can be completed completely online.
Equity Trust can initiate the transfer of funds if you make the transfer from an existing account; the timing of this process is dictated by the custodian who currently holds the funds. Once funds have been deposited into your account, you're ready to buy precious metals within your IRA. After choosing a precious metals merchant or platform, instruct your custodian to purchase whatever coin or ingot products you want. At any time, you can choose to remove your precious metals from the warehouse's storage facilities for full or partial distribution. As with any early distribution of an IRA, taking physical possession with a full or partial distribution of your precious metals can result in taxes and penalties, unless transferred to another qualified custodian. You can also choose to re-sell your metals to an authorized dealer and the cash received will be returned to your IRA.
An investor can have multiple IRAs, but no matter how many you have, your total annual contribution limits remain the same. If you already have an IRA or 401(k), you can deposit funds into an IRA by transferring the full or partial amount; as the funds will go to another tax-advantaged account, there will be no tax penalties. Equity Trust will facilitate this process by following your instructions. Current law allows both transfers from IRAs and reinvestments from qualifying retirement plans, such as 401(k), 401(a), 403(b), 457, Thrift Savings Plan (TSP) and annuities. If you have earned income, you're eligible for an IRA, including one that contains precious metals.
Reinvesting an IRA is a tax-free process with no fees or penalties, if done in accordance with IRS guidelines. 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. You can receive distributions from your IRA in the form of physical gold, silver, platinum, or palladium, depending on the metals in your account. You can also convert your metals into cash. At 59 and a half years old, the beneficiary of an IRA can start receiving penalty-free distributions from their account. How do I transfer funds to my self-directed IRA? After you open your Equity Trust account, you will contact your previous employer to inform you about the documentation required to transfer an IRA.
In most cases, this will include account numbers and balances. If you don't have that information, an Equity Trust specialist can contact your previous employer or plan administrator while you're online. Then, you'll complete all the documentation received from the plan administrator and ask you to transfer your retirement assets to your new Equity Trust IRA account number. If your previous employer's plan administrator requires Equity Trust to complete a portion of the distribution form, mail it to Equity Trust Company along with the most up-to-date plan status. Equity Trust will complete the required sections and mail the documentation to the plan administrator.
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