Precious metals invested in a self-governing IRA must be stored in an authorized depository such as the Delaware Depository. Your IRA custodian may recommend a depository, but you can choose one yourself that meets the Internal Revenue Code requirements. The main benefits of investing in precious metals through an IRA are tax benefits. By using an IRA to buy precious metals, the investor saves taxes either now or in the future.
The specific tax benefits depend on whether you choose a traditional IRA or a ROTH IRA. As long as there is gold on this earth, it is not too late to open your own IRA for self-directed precious metals. Traditional IRAs allow investors to put pre-tax (tax-deductible) money into their IRA to invest in assets of their choice. Gold IRAs will help diversify an individual’s retirement account and serve as a hedge against specific financial factors.
You must be careful when making an IRA contribution, as unapproved metals are rejected by the depository office. Customers can rest assured that their metals are fully insured in the rare event of loss or damage while the package is in transit. Please contact either your IRA custodian bank or the depositary of your choice to find out more about the fee structures. Gold IRA companies vary in terms of experience, service, and costs. So take a look around and compare your options before you proceed with opening an account.
You can liquidate or take possession of your metals at any time. However, this is considered distribution and may have tax implications. Unlike withdrawing funds from a traditional retirement account, a gold-backed IRA allows you to have a powerful physical asset in your hands, gold that you can keep, sell at a later date, use as currency in times of crisis, or pass on to family members. If you’re using New Direction IRA, it may take 1-2 business days to open your account once your application is received. Once you’re 59½ years old, you can liquidate the precious metals in your self-directed IRA for cash or take physical possession of your gold and silver without penalty.
Additionally, if the IRS determines that the day your IRA gold entered your home was the “distribution” date, you could end up paying additional penalties and back taxes owed from the time it was distributed. However, keep in mind that these accounts incur higher fees as you must buy and store precious metals.