Wall Street Metals – Gold and Silver Investing
WHY CHOOSE A PRECIOUS METALS IRA?
The main advantages of investing in precious metals through an IRA are tax benefits. By using precious metals IRAs for purchases, the investor either saves taxes now or in the future. The specific tax benefits depend on if you choose a traditional or a ROTH IRA.
Popular Traditional IRAs
Traditional IRAs allow investors to put pre-tax (tax-deductible) money into their IRA to be invested in assets of their choice. That money can then grow over time tax-free, and upon retirement age (currently 59.5), the investor can begin to withdraw from the account without penalty and pay taxes on the amounts withdrawn. Additional benefits as follows:
- By contributing to a traditional IRA, you may be able to lower your current tax bracket as your contributions are tax-deductible.
- A traditional IRA will allow you to invest more money because taxes are not deducted from the original investment capital.
- Investors who are in too high of a tax bracket to qualify for a ROTH IRA can still choose to contribute to a traditional IRA.
- Early withdrawals can be taken without penalty in the event of unusual circumstances such as a 1st home purchase or medical bills.
- Investors should consider choosing a traditional IRA if they anticipate their tax rate at retirement to be lower than their current tax rate.
ROTH IRAs allow investors to put post-tax money into their IRA to be invested in assets of their choice. That money can then grow over time tax-free, and upon retirement age (currently 59.5), the investor can begin to withdraw from their account without penalty and without any taxation, provided the account has been open for at least 5 years. Additional benefits as follows:
- ROTH IRAs ensure that your qualified withdrawals in the future are tax-free because you already paid taxes up front on contributions.
- Investors who are over 70.5 can still contribute to ROTH IRAs.
- ROTH IRAs have no Required Minimum Distributions (RMD).
- Investors should consider choosing a ROTH IRA if they anticipate their tax rate at retirement to be higher than their current tax rate.
- Both of these options are great as precious metals IRAs.
New vs. Existing IRAs
Our self-directed IRA custodian partners are not only able to help set up new precious metals IRAs, but can also help you with a 401(k) rollover or transfer of existing assets. Make sure to be very careful when performing an IRA transfer or rollover, as if these transactions are not performed properly they can actually trigger a major tax event on your savings. Our IRA custodians are more than happy to help you with a transfer or rollover in the seamless and correct manner.
More Precious Metals IRA FAQs
Below are more frequently asked questions pertaining to self-directed precious metals such as coins for your IRA:
How do I buy my coins to put into an IRA?
If you wish to have your coins held in an IRA we can act on your behalf and deal with your custodian to ensure safe, quick, and hassle-free delivery of your coins. Like us most IRA Trust companies also use DDSC to hold your coins so this would be a simple electronic transfer, we sell the coins and transfer them to your IRA, once we are in receipt of full payment.
What precious metals products are NOT approved for IRAs?
To qualify as an IRA-approved product, precious metals must meet minimum fineness levels. The American Gold Eagle is the only exception to the following numbers. Minimum gold fineness: .995. Minimum silver fineness: .999. Minimum platinum fineness: .9995. Minimum palladium fineness: .9995. Any products falling outside of these ranges, excluding American Gold Eagles, are not approved for IRA contributions. Examples of non-approved precious metals products include pre-1933 gold, gold Krugerrands, and 90% US silver coins.
Can I rollover or transfer an existing IRA to a self-directed precious metals IRA?
Yes. Your self directed IRA custodian can help you arrange to rollover or transfer your existing IRA into a precious metals IRA.
How long does it take to rollover an existing IRA/401k?
This will vary based on which custodian you choose. It can take 2-4 business days to open your account once they receive your application. After your account is set up you will then have to fund it.
Once I receive my old 401k funds how long do I have to deposit them into my new precious metals IRA?
In the case of a 401k rollover, your funds are generally paid directly to you. Once you have the funds in your possession you have 60 days to transfer them into your new self-directed IRA account. If you do not do so within this 60 day period you may be required to pay taxes. In order to fully understand these rules, we recommend talking to a tax advisor before transferring any IRA funds.
Am I allowed to have more than one IRA?
Yes, an individual is allowed to have more than one IRA account. However, your total yearly contribution will remain at the same maximum no matter how many IRAs you have.
How long after you ship my metals will they be in my account?
Once your order is placed and your funds have cleared our bank account, the metals will usually ship out from our Depository within 1-3 business days. Depending on the destination, it can take an additional 1-5 business days to arrive.
Are my metals insured at the depository?
Once your precious metals arrive at the depository they will be fully insured. As an added protection, we also insure each mailing we ship out in the very rare occurrence that a package becomes lost or damaged.
How do I know my metals are actually there?
Most depositories, including Delaware Depository, provide full accounting and reporting services to insure your metals are safe and accounted for. All metals are also fully segregated from other customers’ metals at no additional cost and are insured for their full amount.
What sorts of tax benefits will I see by investing in precious metals through an IRA?
Investors can expect to see significant tax savings by investing in precious metals using an IRA vs. investing outside an IRA. Please see the section above to learn about the tax benefits of using a traditional or ROTH IRA to invest in physical precious metals.
Are there any IRA contribution limits?
Yes, you may be subject to IRA contribution limits depending on your type of IRA and income levels. Please consult with your IRA custodian to learn of any contribution limits you may be subject to.
If I invest with an IRA, do I still receive the physical precious metals?
No. As part of the IRS’ rules regarding precious metals IRAs, we, as the dealer, MUST ship the products to an approved IRA depository, who then holds the metal until the time you are ready to liquidate the position.
Will I ever be able to take physical delivery of my metal?
You can liquidate or take possession of your metals at any time, however, this is considered a distribution and there may be tax implications involved. We recommend speaking with a tax professional before making this decision.
Why would I invest in a self-directed precious metals IRA instead of investing in an ETF like GLD?
We do not provide investment advice, but many of our clients prefer self-directed precious metals IRAs because they are backed by real, physical, segregated metal, vs. an ETF like GLD which is only backed by a pool of gold holdings and positions.
What are typical custodian and storage fees?
Fees vary depending on the size of your account and the metal holdings in your depository. Please contact either your IRA custodian or your depository of choice to learn more about fee structures.
Do you have a minimum IRA purchase?
We do not have a specific minimum order size for IRA Purchases, however, we do have a $100 minimum that applies to all orders. That being said, most IRA purchases will exceed this amount.
Do you charge commissions as the dealer for IRA precious metals purchases?
No. Our only part of the IRA contribution process is selling the actual metal to the custodian, which we do at our normal rates with no commissions or surcharges added.
Do I have to pay the shipping on my IRA purchase?
As we ship all orders completely free of charge, you will not have to pay any shipping fees. Furthermore, all of the packages we send out include insurance and tracking as well at no additional cost. This means you will be able to track your package while it is on its way to the depository. Customers can rest easy knowing their metals are fully insured in the rare occurrence of loss or damage while the package is in transit.