Gold IRA Information – FAQ
Quick History on Gold’s Track Record
Throughout the years, gold has outlasted all other investments, giving it a trusted track record of trust and sustainability. Not only does this make gold a smart investment but it makes it a sound investment in the long run – especially for your retirement.
How do you invest in gold you ask? Well, it’s actually a quite easy and simple process to go through. With precious metals being one of the premier assets for investors to diversify their portfolio, there are a ton of questions for first time buyers.
Just below this sentence you’ll find some of the more frequently asked questions in regards to gold investing. These questions have been categorized in order of importance:
What Is A Gold Backed IRA?
Have you ever heard of a self directed IRA? That’s essentially all a gold backed IRA is. However, the only difference is that it must meet the rules and regulations of the IRS. This essentially means that gold, silver, palladium can be chosen as an investment other than traditional paper based investments that are uncertain. This means more long term security for everyday people just like you.
What Types of Precious Metals Investment Options Can I Choose Besides Gold?
As of 2014, you may choose silver, platinum and palladium for a gold backed IRA account.
What Restrictions Are There On The Types of Precious Metals That Can Be Held In A Retirement Account?
Currently, there are certain restrictions in regards to what types of precious metals you can have in your Individual Retirement Account (IRA). Here are a few lists that reveal the details of what’s acceptable to hold:
*(A) All coins that have been through the ‘certification’ process as well as the American Eagle (also known as slabbed coins) are not acceptable in retirement plans as of this time.
* (B) Rounds and Bars that have been produced by manufacturers who are accredited or have been accredited by Nymex/Comex, LME, LBMA, NYSE/Liffe/CBOT, and ISE-9000 or a national mint. The bare minimum finenesses for bars are as follows:
Gold .995+
Silver .999+
Platinum .995+
Palladium .995+
While it may seem a bit unfair as to the type of precious metals you can have in your Individual Retirement Account, know that these types of coins, rounds, and bars were determined by the 1997 Tax Payer Relief Act.
Will I Be Able To Include Alternative Types of Gold Investments?
You sure can! You’re definitely not confined to nor are you limited to just physical gold. This means that a Gold Exchange Traded Fund (ETF) or other stocks and share options from other gold mining companies can be included in your investment.
Will I Be Able To Add Other Types of Investments To My Gold IRA?
Absolutely! Once again, you’re not limited to just physical gold as an investment. You can take advantage of your already existing investments and include them, even if they’re not gold or even related to precious metals. The only thing that must be done is this: set up a specific type of Individual Retirement Account to hvae your gold held in. But once again, you are not limited to just physical gold.
I’d Like To Rollover or Transfer My Existing IRA.. Is This Possible?
Most certainly! You can rollover or transfer any one of your existing retirement plans into a Gold IRA.
Your first option is to do what’s called a “rollover.” No, not like a dog haha. This is the process that happens when you receive the distribution from your current retirement account and then turn around and deposit it into another retirement plan custodial account. This basically means that you’re re-depositing the funds into a brand new retirement account with 60 days of initially receiving the funds from your previous retirement account. If for whatever reason you exceed the 60 day holding period, you immediately become liable for taxes and penalties in accordance to Federal Law on the funds that were initially withdrawn. So to keep it simple: be sure to deposit the money from your old account into your new IRA account as soon as possible to avoid any Federal Taxes!
Your second option is to “transfer” the funds. This process can take place whenever you would like, except you would not receive the funds at all. This transfer would happen from your existing custodian to your new custodian. Make sense? This process is known as a direct transfer, where your funds will go from one custodian to the other. Transfers are allowed as much as you want.
I’m Loving The Idea of the IRA Rollover and the Transfer. Will I have To Switch Everything All At Once?
No, you can easily rollover or transfer your existing retirement plan in individual increments. This process can be easily done and is also a smart way to invest portions of your retirement plan into precious metals. Which means more exposure to all precious metals (Gold, Silver, Platinum, Palladium) with little to no out of pocket costs on your end.
What Types of Taxes or Penalties Will I Have To Pay When Transferring?
None! You won’t have to pay any taxes or penalties when you transfer traditional IRAs into a gold IRA, which means more money saved.
What Types of Fees Can I Expect To Pay?
Next to nothing. That’s one of the benefits of transferring or conducting a gold IRA rollover. Most gold IRA companies ask for a minimum $250 transfer fee, not to mention storage fees that will typically run you 1% of the total value of your IRA per annum. However, there are certain precious metal dealers, such as the one we recommend who will waive your set up and storage fees for one year when you transfer $10,000 from your existing individual retirement account.
Will I Be Able To Physically Hold My Gold?
Unfortunately, you won’t be able to physically handle or hold your gold until you’ve reached the age of 59½, at this point you’ll be bale to hold your own gold without having any penalties being placed upon you. In the mean time, your gold must be held at an insured backed and IRS approved depository in your name.
What Can I Expect With The Transfer Process?
This is by far one of the simplest parts of the process. You can expect everything to be completed in as short as a couple of weeks, granted that you work with a company that specializes in both precious metals retirement plans along with precious metals. If you want ease, speed, and hassle free quality service we highly recommend that you read this quick article on how to set up an IRA account.