Top 5 Silver IRA Rules You Should Know
Regardless if you’re nearing the age of retirement soon or in the next decade or two, having your eyes set on a retirement plan that works for you is a way to maximizing your investments well for the long run. Precious metals IRA are often argued as one of the best ways to smoothen out your risks and to obtain a portfolio that helps you gain great control over your investments.
Precious metals IRAs are argued to be better than paper-based assets because they are not subject to the volatility of markets in the same way stocks, bonds or other mutual funds are. Moreover, IRAs that are bound by regulations of the IRS are also safe from changes in government’s policies, much unlike social security funds.
As is the case with any large investment and long-term financial decisions, being informed is the key to getting the most out of your investments. Here are a few things you should keep in mind while setting up your silver IRA account.
A Silver IRA Operates the Same Way as Any Other IRA does
The rules applicable to traditional IRAs such as those with stocks, bonds and mutual funds are also applicable to a sliver or other precious metals IRA account. The only difference is that with the addition of precious metals, your risks are more controlled and diversified.
The Silver Must Be Held According To the IRS Regulations
The IRS regulations state that if you have opened a precious metals IRA account, you must ensure that your precious metals or gold bars are stored in a secure and regulated depositary with an approved custodian.
You cannot store these precious metals at home and have them registered under your IRA without depositing them into your account.
Your IRA account provider can facilitate you with this, as all silver that qualifies for use under the IRA account must be 99.9% pure or meet a fineness grade of 0.999 to qualify. If you’re looking to safely buy pure gold or silver coins online, you can easily do so through a verified metal exchange company.
You Must Fund Your IRA by Purchasing New Silver Coins
To set up a silver IRA account, you will need to fund it by buying new silver coins using your retirement funds. You cannot use pre-owned silver to deposit in your IRA account. You may, however, roll over funds from an already existing IRA account into your precious metals IRA to purchase gold or silver.
Keep in Mind IRS Contribution Limits
The IRS regulates the contributions made to IRA accounts at $5,500 per annum for people under the age of 50 and at $6,500 per annum for those over the age of 50 years. These contribution limits have been in place for several years.
Need More Help?
Although these are just the basics, there are more stringent rules that precisely govern the type of silver that may be used in a silver IRA account and how it can be done. However, you don’t need to worry about the nitty-gritty’s of the rules!
If you’re looking to set up a precious metals IRA account for your retirement, Orion Metal Exchange is here to help!
Start investing, today! Find out more about our services or call us at 1-800-559-0088 for expert advice on precious metals IRAs.