We started a Three part series answering some frequently asked questions regarding precious metals IRA’s. Enjoy.
What are the Eligibility Requirements?
In order to set up an Individual Retirement Account you must get a compensation form from your employer, self-employment, or alimony. Income from investments, pensions, and annuities do not qualify. Opening an IRA account does not require a huge amount of money, which provides people with lower end budgets the ability to open up an account. If you wanted to open up a Traditional IRA Account you have to be younger than 70 ½ years of age. You can be any age to contribute a Roth IRA account. There are several rules and guidelines that are required to follow for each type of IRA account, which will greatly influence which account is best for you.
What are the Advantages to Having a Precious Metals IRA Account?
Having an IRA account will help give you a tax advantage. An IRA account provides tax advantages that other investment strategies and savings accounts do not offer for example, tax-free withdrawals and tax-deductible contributions. You have tax advantages with precious metals that are distinctly different from other investment options due to them being available in the form of bullion and numismatic, which both carry a different value. Another advantage to having a precious metals IRA account is that it is a self-directed account that allows you to have control of your investment giving you the ability to make any changes you want and also allowing you to re-direct your funds elsewhere. Other IRA’s that are funded with paper assets are under the control of fund managers that you will never meet or see.
What are the Limitations to a Precious Metals IRA Account?
There is a certain amount of money that you are allowed to place in your Individual Retirement Account each year and for 2013 the yearly amount allowed is $5,000 and if you are over the age of 50 you can add an extra $1,000 per-year giving you an annual total of $6,000. This is because the IRS wants to encourage those close to retirement to start saving more money. If you are married you are allowed to double the annual allotted amount. Certain IRA accounts have certain income limitations. Many people that decide to take advantage of a Precious Metals IRA start out by transferring funds over from another IRA account or retirement fund.
How Does a Precious Metals Account Work?
Different forms of gold, silver, and platinum fund precious Metals IRA accounts. One of the most popular coins that people choose to put into their IRA Account is the American Eagle coin that are minted by the United States. The coins that you purchase are held by a third party trust company that are fully licensed and regulated by federal and state agencies. Once you have chosen what trust company you want to service your account and you choose the coins you want which are then shipped to a fully insured and secure depository where your coins will be held for the full length of your IRA account.
Recent Comments