Investing Your Retirement Plan In Precious Metals? Know The Rules!
When it comes to retirement investment plans, alternative investments can provide higher financial security than traditional ones. In uncertain times, you can be sure that precious metal investments will remain reliable. This means that even when the stock market takes a hit, gold and silver will continue to show strong returns.
After all, the term “gold standard” doesn’t exist for nothing.
Self-directed precious metal IRAs work best for those who want a multitude of investment options, such as physical gold, platinum, silver, and other types of precious metals.
As compared to traditional IRAs, precious metal IRAs can maximize your savings and are financially secure modes of investment.
Read on to discover important rules for investing your retirement plan in precious metals.
Which Types of Precious Metals Are Acceptable?
The Internal Revenue Service (IRS) has laid down regulations regarding the type of precious metals that can be used for self-directed IRA investment. The level of physical metal purity is one important factor that’s considered.
For example, a gold bar must be 99.9% pure. This is to safeguard investors from purchasing collectible items with little long-term investment value.
Investors should also know about precious metal coin regulations. The American Eagle gold coin, Royal Canadian Mint Snow Falcon coin, and certain silver coins are the few that are acceptable. South African Krugerrand and the Canadian Gold Maples coins are not allowed.
The Correct Way To Manage Your Investments
When making precious metal investments, you have to follow certain procedures. A designated IRA custodian is required to make purchases for your self-directed IRA. You can’t add precious metals that you already own to this account.
Precious metals must be bought online through the custodian. You can use the cash in your IRA account for the purchase. This regulation aims to protect investors from unfair dealings.
All precious metal assets purchased for your IRA should be stored with your custodian. The custodian might charge a fee for storing IRA precious metal assets.
You can also legally avoid paying taxes owed on the proceeds during the sale of these assets. This only applies when you keep the money earned in your IRA.
A Reliable Precious Metals IRA Account Provider
Orion Metal Exchange is a Los Angeles-based precious metals investment dealer. We have more than 50 years of industry experience in providing clients a secure means of retirement investment.
Our Gold IRA includes IRS-approved silver, gold, platinum, and palladium. These precious metals are held in custody by an IRS-approved designated IRA custodian.