What Is An IRA: Top 5 IRA FAQs
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Precious metal IRAs are a very popular investment tool; several investment experts recommend gold and silver IRAs to investors planning their retirement funding.
The following answers the top 5 Frequently Asked Questions about IRAs.
What is an IRA?
IRA stands for Individual Retirement Account. It’s a type of savings account that allows account owners to save for retirement and enjoy a myriad of tax advantages. There are two types of IRAs: Roth IRAs and Traditional IRAs.
What’s the difference between a Roth IRA and Traditional IRA?
The main differentiating factor between a traditional IRA and a Roth IRA is the types of tax benefits offered. Roth IRA account owners don’t get deductions for contributions. In retirement, your investment earnings can be distributed tax-free and penalty-free if you adhere to the rules.
Traditional IRAs offer contributions-based deductions. Owners can defer their tax payment on investment earnings. The deferment can occur till the funds are withdrawn such as in retirement.
What’s an inherited IRA?
This type of IRA enables beneficiaries to take distributions while maintaining tax-advantaged funds in an IRA. The deceased IRA owner listed as the beneficiary will be mentioned in the account title.
As an owner of an inherited IRA, you can’t make contributions and execute a 60-day rollover to the account. You are only required to collect annual required minimum distributions (RMDs). This amount is based on your life expectancy and you’ll be taxed on this amount too. This is commonly referred to as the stretch IRA strategy.
Why should I get a gold and silver IRA?
Adding gold/silver to your retirement account will serve as a means of wealth protection. Precious metals are “safe haven” assets as their value doesn’t fluctuate with the market.
Those who invest in “paper” markets typically face volatile investments. A quick stock market drop could greatly impact your investment portfolio, especially if you’re retiring soon. This is not the case with precious metal IRAs. Physical gold and silver can help to not only diversify your portfolio, but also offer a secure financial future.
What is a Gold IRA?
The Gold IRA program offered by Orion Metal Exchange consists of a Gold IRA. This is an IRS-approved individual retirement account with physical gold, silver, palladium, and platinum. Account owners enjoy the same tax benefits as a traditional IRA. For the benefit of owners, the precious metals are held in the custody of an IRA-approved custodian.
Secure Your Retirement With Gold and Silver
Orion Metal Exchange is a leading precious metals investment dealer based in LA, California. We have more than 5 decades’ experience in the industry and offer secure IRA accounts, gold bullion bars and coins, safe precious metal storage, and more.
Get in touch us today for more information.