How to Convert an IRA to Gold and Silver
Over 60 million tax-paying individuals in the US own an Individual Retirement Account (IRA). For a vast majority of the American public, these IRA accounts represent the safety net for their old age, and hence they’re deeply invested in protecting them.
But if you thought that you could only keep cash savings in your IRA account, think again. Because in this blog today, we’ll guide you on converting your standard IRA account into a silver and gold IRA.
What is a Standard IRA?
A standard IRA account includes Roth IRAs, Savings Incentive Match Plans for Employees (SIMPLE IRAs), and Simplified Employee Pensions (SEP IRAs). Individuals can save cash, stocks, and bonds in their IRA accounts. IRS, however, also allows people to save precious metals such as gold, silver, platinum, or palladium in their IRA gold and silvers.
How to Convert IRAInto Gold and Silver
If you’re looking to invest in gold with an IRA account, the process is fairly simple. However, if you wish to convert your IRA into a gold and silver IRA, then here’s the way forward.
But first, learn about paper metals too.
Investing In Paper Metals
Some people opt for paper metals as their IRA accounts. This means that instead of investing in gold and silver coins, you can buy stocks of precious metal trading companies or mining companies. This way, you’ll have a paper-based investment driven by the prices of precious metals such as gold and silver.
Note: You can buy paper metals equivalent to the amount you want to invest in gold or silver.
Open a Self-Directed IRA
It’s not possible to directly use a standard IRA as a gold and silver IRA. Therefore, you must first convert your traditional IRA into a self-directed individual retirement account to use as a precious metals IRA. After consulting with a silver and gold IRA company, you can invest in precious metals and physically possess gold, silver, platinum, or palladium in your self-directed IRA.
Roll Over Funds
Some people have taxation concerns that prevent them from turning traditional IRAs into gold and silver IRAs. Fortunately, IRS has laws in place that can help you with this challenge.
If you wish to roll over funds from your standard IRA to invest in gold and silver IRA without getting taxed, you’re required by IRS to transfer funds to your self-directed IRA first. The transaction can be done once annually and has to be completed within 60 days between the two IRA accounts. Now, you’re legally allowed to use your self-directed IRA funds to invest in precious metals.
Buy Your Gold
As per the IRS laws, you can only buy gold and silver that meets a certain purity standard. So once you have funds in your self-directed IRA, ask your IRA custodian to directly transfer the funds to a reliable silver and gold investment company. The company will then deposit your precious metals into your IRA, which the custodian will keep with themselves.
Note: As per IRS laws, you cannot keep your IRA precious metals in your custody.
Benefits of Gold and Silver IRA
If you’re skeptical about investing in gold and silver for your IRA, then reading the following benefits will help make up your mind.
A strong portfolio is one that’s diverse and rich. So if you’re keen to make your IRA account more diverse, investing in precious metals can help you.
Hedge Against Inflation
Gold offers protection against inflation due to its less volatile nature. So instead of only keeping a currency-based IRA account, use precious metals as a hedge against inflation.
Better Growth Prospect
Precious metals have showcased higher growth over the years. For retirees who seek to enjoy a higher ROI in the long term, investing in gold and silver is a better call than keeping a traditional IRA.
Set Up Your Gold and Silver IRA Investment Account With Us!
If you’re looking for a reputable silver and gold IRA company and precious metals ira custodian, then reach out to us at Orion Metal Exchange. We’re an experienced precious metal investment company with vast experience in gold and silver IRAs.