Gold And Other Precious Metals IRA
A gold backed IRA or precious metals IRA is a special type of IRA (Individual Retirement Account) that invests in gold and other precious metals such as silver, platinum, and palladium to name a few.
In 2008, employees lost on average 14% of their retirement money and sadly for some, got nearly wiped out due to the volatile market. “Safe” fixed income investments are producing minimal returns and the US National Debt is approximately $17 trillion dollars and is increasing around $3.6 billion per day. The value of the dollar is getting weaker and weaker. As history tends to repeat itself, investing in a gold IRA can act as a hedge against inflation and provide security for your retirement years. Although gold and other precious metals values moves up and down, it has historically increased in value overall and has proven time and time again to be a very stable form of investment. Most importantly, gold has always retained a monetary value since time began. Diversifying your portfolio to include gold and other precious metals will help protect your retirement from being exposed to the negative effects of our government’s over spending and inflation. In the last 30 seconds of the video below, Ron Paul highly advises to invest in gold.
The purpose of this website is to provide you with the best reviews of the top 3 gold and silver IRA companies. There are many more companies out in the market that didn’t make our top 3 cut but are still very reputable companies. Nevertheless, the precious metals companies we reviewed that came out on top when put to the test against our grading standards were Regal Assets, Capital Gold Group, and Lear Capital. You can visit the Gold IRA Companies page that explains in further detail of our rating criteria and the data gathered. We decided that there are enough decisions to make in life and have kept the detailed reviews to the top 3. The company that met our highest rating criteria is Regal Assets.
There are actually several types of IRAs available (11 to be exact). The most common ones being traditional IRAs, Roth, SEP, SIMPLE, and of course the self-directed IRAs. Don’t fret, you don’t need to understand how all these different types of IRAs work in order for you to rollover your existing IRA to a gold IRA. The most important decision is which precious metals company you decide to work with. You can see our company ratings chart for further details. Picking the right company is crucial as they will help you purchase the right type of gold that follow IRS rules (gold has to pass a purity level of 99.9% or higher ). They can also guide you in finding a good depository to safely store your gold. Another great resource to find more detailed rules on various IRAs and other retirement vehicles is Investopedia.
Traditional IRAs allow you to deduct your contributions into the IRA from your yearly taxes. The only caveat is that you are not also enrolled in a different retirement account by your employer. The earnings in this type of IRA are tax-deferred until you start your withdrawals at that age of 70 ½ at which time it will be taxed. You can click on traditional IRAs for more information.
Although both traditional IRA’s and Roth IRA’s share many things in common, there are some key differences to take note of. One of those main differences is that with a Roth IRA your contributions are not tax deductible along with any earnings in the account, however, “qualified” withdrawals or “distributions” from the account aren’t taxable as well. The criteria for qualified withdrawals are as follows:
- Withdrawals are done after your reach 59 1/2 years of age
- Withdrawals to a beneficiary in the event of death
- Withdrawals due to you being disabled
- Withdrawals to purchase a primary residence home for first time buyers
Self Directed IRA
Self directed IRAs are designed for DIY (Do It Yourself) investors looking to invest beyond just stocks, bonds, and treasuries. A custodian is still involved in holding the account, however, you can direct how the funds are invested. The biggest advantage of a self directed IRA is that you can invest in a much broader range of investments including real estate, private placements, and of course precious metals. The drawback to this type of IRA is that you need to be aware of the tax implications of your investments as the custodian or trustee will not be responsible for any tax implications your investments may have.
SEP IRA and SIMPLE IRA
A Simplified Employee Pention (SEP) is a retirement plan setup by employers and self employed individuals. Employers can make tax deductible contributions on behalf of the employees as well as for the business owner themselves.
A Savings Incentive Match Plan for Employees (SIMPLE) IRA offers wonderful benefits for the businesses that meet two criteria. First, the company needs to have 100 or less employees who earned at least $5k or more in the previous calendar year. Second, you cannot have another retirement plan already in place. With a SIMPLE IRA, the employees can also contribute to the account and the employer is required to either match the contribution or do a non-elective contribution (making a contribution regardless if the employee makes a salary reduced contribution or not).
You can even rollover your 401(k) retirement account into a gold IRA. However, there are some rules to qualify. If you have an older 401(k) from your previous employer, it’s very easy to rollover into precious metals. Otherwise, if your 401(k) is with your current employer, there maybe some hurdles to overcome in order to do the rollover. The best course of action is to contact the gold IRA company you decide to work with. They will be able to assist you in navigating through the process.
Gold and Silver IRA Rollovers
Rolling over funds from your existing IRA or 401k to a gold or silver IRA can seem like a daunting task but is actually a very simple and easy process as long as you are working with the right company. Click to link below to discover more about the process.
Go to Gold IRA Rollover to learn:
- How the Precious Metals IRA process works
- Advice on avoiding some pitfalls
- Important insider tips
If you’re already familiar with the IRA account rollover process. You can go directly to the company ratings chart for an easy to read side by side comparison that showcases important ratings and other pertinent information of our top 3 gold and silver IRA companies.