Gold IRA Options & Opportunities

Owning and maintaining an IRA is much more difficult than it once was.  Most investors today are looking for something more stable and solid when they think about what is going into their portfolios. However, the requirements and rules regarding gold investment with an IRA have relaxed somewhat. It is now relatively simple to open a gold IRA with a new custodian or modify the account that you already have into one that contains gold or other precious metals.

 

Why the Movement Into Physical Gold?

The move to buy physical gold, either for personal possession or as part of someone’s retirement savings, has confused some investors. However, if they were to look closely at the market and its performance over time and dig deeper into the valuation of the  US dollar, they might understand a little more clearly.

While the market is clearly up, this does not take into account the weakening state of the US dollar. The federal government, through the Federal Reserve, has pumped trillions of dollars into the economy since 2008. The inflationary effect of this money printing had been held in check to some extent, but we are now seeing its effects.  High inflation is here to stay.

There are many types of investment that can act as hedges against inflation. The most reliable of these is gold. More investors today are looking to own gold bullion as they can depend on it to retain and even increase value in terms of the inflated dollar over of time.

Misconceptions About Gold IRAs

Originally, you were not able to invest too much gold into an IRA. Beyond the Gold Eagle coin, an investor could not place gold into a retirement account that was then exempt from taxation.  The government has relaxed the rules regarding these accounts now and a wider range of gold products may now be included among other investments.

Many people also operate their IRAs under the misguided understanding that they have very little control over these accounts and cannot change their custodians without a great deal of inconvenience. The truth is though that there are many custodians who are willing to give their clients a decision-making power in terms of investments. They can also help clients of more stringent and restrictive custodians manage transfers and rollovers from one IRA to another.

Eligible IRAs

• A self-directed IRA is popular for investors seeking to put more gold in their retirement savings. This type of retirement account generally leaves the type of investments to the investor with little input from the custodian. The more traditional IRAs, however, are also open to gold investment with the right custodian.
• A traditional IRA exempts the owner from taxation.  Only withdrawals are taxed after the account holder officially retires. You are able to arrange trades and buy physical gold with the earnings as well. However, you can not handle the gold that you acquire,  nor can your custodian. Instead, your gold will have to be held by a third party, which comes at a cost.  When you officially retire, the gold is shipped directly to you if you so choose, but not for all.
• A Roth IRA can also invest in gold if the custodian allows this type of trade.  You should remember, though, that a Roth IRA is taxed upfront. You will need to buy the gold with money that has already been taxed as income.
• An SEP IRA is an account for the self-employed. There is, to date little oversight and it is easy to invest this kind of an IRA into precious metals.

You may also be eligible for a Gold IRA if you have a 401(k), 403(b) retirement plan for employees of public or tax-exempt organizations, 457 Deferred Compensation Plan, TIAA CREF, Pension Plan or Thrift Savings Plan. Reach out to your preferred gold IRA company to discuss further.

Gold Bars and Coins Eligibility

Most people think of large gold bars sitting in Fort Knox when they think of gold.  Gold bullion actually comes in many different forms in smaller denominations than those large gold bards. Eligible gold products for your IRA can include foreign and domestic coins as well as the traditional gold minted by various companies that are available in a wide range of sizes.

• The American Gold Eagle

This coin comes in sizes from a tenth of an ounce to a full ounce. Its fineness, or purity is less than many other foreign legal tender coins but it makes up for this with integrity and design.  Much more accepted in the US than abroad.

• The Canadian Gold Maple Leaf

This coin, like all Canadian coins, is minted every year and comes in the highest gold fineness available.

• The South African Krugerrand 

The Krugerrands are very much the “Gold “standard” in this space.  They have been around for longer than  most other options and their value is known worldwide

• The Austrian Gold Philharmonic

If you want diversity in your portfolio, buy these gold Euros minted in Austria.  They can add some flavor to your portfolio and are a great looking coin.

• Credit Suisse Gold Bars

This Swiss company is well-known for minting gold bars, ranging in size from one gram to several kilograms, in the highest purity. They are one of very few companies that can offer these varying denominations and are so well known.

What If Your Custodian Is Not Offering What You Want?

You may discover, after inquiry, that your current custodian is not offering you many opportunities to invest in gold with your IRA. if this is the case, you will need to make a gold IRA rollover.

Enacting a Gold IRA Rollover

This does not have to be a difficult task. After finding a custodian willing to take on your account, this company manages the paperwork directly. They will ensure that a check for the full amount is sent directly from the old custodian to the new one, in time. This will help you avoid taxation from a withdrawal and allow yo to begin choosing gold assets.

Opening up a gold IRA is the best way to prepare for an uncertain financial future. This precious metal will continue to hold its own during economic turbulence and can help retain wealth for retirement more effectively than any other asset.