Brief Review of Gold IRAs
Whether you’re reaching retirement age or are a budding professional looking to build a retirement nest, gold individual retirement accounts (gold IRAs) must have come to your attention. This is because gold IRAs have garnered as much attention (if not more) than traditional retirement accounts in recent years.
But before you set up a gold IRA, it’s important to know some key differences between gold IRAs and traditional retirement accounts. Take a look below to learn all about gold IRAs.
What is a Gold IRA?
Like any other individual retirement account, a gold IRA allows its owners to purchase and store gold bullion bars, silver bullion bars, platinum, and palladium in the IRA. So if you have a traditional IRA where you can keep stocks, cash, bonds, or other assets, a gold IRA lets you save precious metals for your retirement.
How is it Different from a Traditional IRA?
A gold IRA has similar withdrawal rules and terms and conditions as a traditional IRA. However, there are some differences in the tax benefits of a traditional IRA and a gold IRA. Further, a self-directed gold IRA must be managed by an IRA custodian instead of the owner.
How to Open a Gold IRA
If you’re looking to open a gold IRA, then here’s the procedure:
- Find a custodian to store your assets in an IRS-approved depository.
- Pick a precious metal dealer to purchase on your behalf.
- Select precious metals such as gold bars, silver coins, or PGM bars.
- Do the paperwork as directed by IRS.
- Complete the transaction through your account and buy precious metals for your IRA.
Benefits of Gold IRA
Here are some of the reasons gold IRA has become popular ever since the 2008 financial recession:
- Protection against inflation and currency fallout.
- Long-term stability of precious metals.
- Easier to manage with a credible custodian.
- Tax benefits on contribution and withdrawal after the set period.
- Get the benefits of precious metal investment.
Things to Consider
But before you open a gold IRA, here are some things to be mindful of.
Quality of the Metals
The U.S. government and IRS have defined the quality of gold, silver, platinum, and palladium that one can hold in a precious metal IRA. Only buy precious metals according to those standards.
When looking for a custodian, find a reputable IRA custodian who’s transparent, flexible, licensed, credible, and has experience with gold IRA.
But if you’re not sure if a gold IRA is right for you, then there are many other ways for you to invest in gold. You can buy gold bars, ETFs, gold mining stocks, and more.
Keen to Learn More? Talk to Us!
Want to know how to invest in gold to make money and precious metals? Contact us at Orion Metal Exchange. We’re a precious metals investment dealer and an accredited best gold ira companies. Learn more about our services and precious metal investments today.