1. What is the thought process of those who own precious metals?
Those who own precious metals aren’t looking to speculate or gamble in crypto currencies or the stock market. They’re conservative and their agenda is to protect their financial futures. They’re concerned with inflation/fiat currency/government debt, and global geo-economic uncertainty. They understand that no one should be expected to know what the future will bring, and therefore understand the value in a properly diversified portfolio. Generally, a precious metal investor looks to plan for the future as opposed to a play-for-today mentality.
2. What is a precious metal IRA?
A precious metal IRA is a non-taxable IRS approved program that gives an individual the ability to hold tangible IRS approved gold, silver, platinum, and palladium in an accredited retirement account. The tangible precious metals are held in custody by an IRS-approved custodian and an insured IRS-approved commercial depository. A precious metal IRA account is identical to any other accredited retirement account with the added benefit of having the ability to actually own tangible precious metals.
3. Are my retirement funds tax deferred in a precious metal IRA?
Yes. A precious metal IRA has the same tax-deferment benefits as any other IRA. Note: this also means the same limitations on early withdrawal will apply. With a precious metal IRA, whether an individual chooses an early withdrawal or is required to take a distribution(RMD), they have the option to receive delivery of the actual precious metals or the current market cash equivalency.
4. What costs are associated with a gold IRA?
Orion Metal Exchange offers investors many advantages over other precious metal companies. Unlike our competitors, we work with every IRS approved precious metal custodian and depository in the nation. This gives an individual the ability to find the best IRA program to suit their personal goals and needs. Our IRA department will work with you to locate and establish the lowest costing IRA program.
5. Can I store my IRA precious metals at home?
Orion Metal Exchange does not recommend a home storage precious metal IRA account. Our position is in compliance with the Internal Revenue Code Sections: 408(m)(3)(B) and (n). Due to IRS rules and regulations, a home storage precious metal IRA is not cost effective and could leave an individual exposed to IRS penalties and fines.
6. What is a 1099-B IRS form?
The purpose of an IRS Form 1099-B is to report the proceeds of an individual’s precious metals sale to the IRS. There are certain precious metal products that require a 1099-B form at time of liquidation. Although an individual must report any and all capital gains, there are certain precious metal products that do not require a 1099-B at time of liquidation. We are well versed in precious metal product knowledge, and will be happy to answer any questions concerning precious metal products. However, Orion Metal Exchange cannot offer tax advice. Please consult a tax professional for details on your specific tax situation.
7. Why is this form required to be filed?
The 1099-B form is used to report any proceeds paid to a non-corporate seller to the IRS. This reporting enables the IRS to determine whether individuals who may be selling items as a source of income have properly reported the income from those sales. If you have additional questions, please consult a tax professional for details on your specific tax situation.
8. When is a 1099-B filed?
Precious metal dealers are required to file a 1099-B form when a customer sells the minimum quantity of any precious metals product that is included on the IRS’s Reportable Items List. Reporting specifications can vary and is dependent on the specific coin or bullion piece(s) sold. If you have additional questions, please consult a tax professional for details on your specific tax situation.
9. What items are IRS-reportable items?
The IRS has specific rules related to reportable transactions that require a Form 1099-B to be filed and those rules are included in the Form 1099-B instructions on the IRS website. The following are guidelines provided by ICTA related to precious metal sales, and these guidelines, as well as the IRS rules, are subject to change at any time without notice.
10. What percentage of my portfolio should I invest in tangible precious metals?
Many non-biased investment professionals recommend diversifying 10-20 percent of their portfolio in tangible precious metals. We believe a properly diversified portfolio must include precious metals. Ultimately, each individual must decide on a percentage that best suits their personal goals and needs.
