Dan Seap

How to Open a Gold IRA

Gold IRA’s are a great way to invest in physical gold, silver and platinum. They’re also a great way to diversify your investments and add a layer of protection against the stock market’s volatility. Unlike conventional IRAs, which are usually limited to stocks, bonds, mutual funds and exchange-traded fund (ETF) portfolios, gold IRAs allow investors to purchase physical gold in the form of bullion or coins.

The first step in setting up a gold IRA is to find a custodian and precious metals dealer. You’ll need to select a company that is approved by the IRS to handle your account. There are many to choose from, so do your research. Check online for reviews, and look for companies that have been rated by other consumers. You can also check with the Better Business Bureau or the Business Consumer Alliance.

Types of IRA’s There are three different types of self-directed IRA’s that are available to investors: traditional, Roth and SEP. The choice of which one to use depends on your tax bracket and the amount of money you plan to invest. Typically, a pretax investment is recommended for those in higher income brackets, but a Roth investment is better for those in lower incomes.

How to Make a Contribution

The contribution limits for gold IRA’s are the same as for traditional IRA’s: $6,000 per year for those younger than 50 and $7,000 for those older. There is also the option to roll over funds from other retirement accounts, such as 401(k)s or traditional IRAs, into a gold IRA. This will follow the same rules as a standard rollover and may result in an additional early withdrawal penalty if you’re younger than 59 1/2.

How to Fund a Gold IRA

The initial funding of a gold IRA is easy, as you can contribute directly or roll over your existing IRA or other retirement account into your new gold IRA. Your custodian and the precious metals dealer will facilitate this for you. However, it is important to be aware of the https://preciousmetalsadvice.com/american-hartford-gold-reviews/ contribution limit for your own situation before making an investment.

You should also take into account fees that a custodian will charge you for the gold you buy and store, as well as any other expenses you’ll incur to hold your precious metals in your IRA. These can include account setup, yearly maintenance, seller’s fees, brokerage, storage fees and insurance.

Buying and Selling Precious Metals

When you’re buying precious metals for your IRA, you need to be sure that you’re purchasing IRS-approved bullion. The IRS will penalize you if you buy something that isn’t listed on the permitted list of gold objects. You should also consider buying gold coins and bars that have been minted by the U.S. Mint or other governments’ official mints.

Getting the right price for your gold is an essential part of the process. Most gold IRA dealers will charge you a markup on the spot market price of your precious metals, but this can vary widely depending on the market conditions and the type of gold you’re buying.