How Does a Precious Metal IRA Work?

PreciousmetalsRecently, while discussing our retirement plans, a  friend asked me “how does a precious metal ira work?”  Why I queried, makes you ask that? My friend Bill stated that he was far from optimistic about the US and world economies and was concerned about “money printing”, inflation and even a possible dollar collapse.

After working a lifetime in order to enjoy a decent retirement lifestyle, Bill, who I consider financially savvy,  feared that he was not diversified enough to protect his life savings from disaster. Like many of us, he got hurt in the 2008 when most of his paper assets dropped significantly. And with the way the FED and our elected officials in DC are handling business, Bill is not alone in fearing that another financial hit is on the horizon.

Bill had begun his due diligence on owning physical precious metals before we spoke and had even purchased a few gold coins. He did some research and found that the IRS allowed investors to hold physical precious metals in a self directed IRA. This was exactly what Bill was looking for. He could move an old IRA or 401k into tangible precious metals giving him peace of mind knowing that his stack of gold would not be wiped out overnight by irresponsible politicians.

My friend knew that he wanted a Gold IRA, but wasn’t sure about how the rollover process worked or which precious metals firm to trust. So I gave Bill a thumbnail sketch of the Precious Metals IRA process, sharing who I trust and work with for my accounts.

Setting up a Precious Metal IRA

The first step in this process is setting up an IRA account with a new custodian. As with any financial transaction, there are forms to fill out. The good news is that with the firm I use, everything is done electronically and an account can be set up in as little as 24 hours after signing the form.

Once your IRA is ready, you’ll need to submit transfer request forms asking your current custodian and move the requested funds into the new IRA account. Again, this can be handled electronically. Once the funds are available in the new IRA, your account executive will get in contact with you and go over your options for the precious metals you can purchase.

Once you decide on what you want, the prices are locked in and the precious metals are purchased. In a week or so, your gold etc. is shipped to the storage facility. You are constantly updated via phone and email throughout the process and your holdings can be monitored online.

Precious Metals IRA FAQ

Rollover or Transfer?
Your initial option is a “transfer.” This is one thing you can perform at any time period with your existing Individual Retirement Account, provided that the funds move directly from custodian to custodian. During a direct transfer, the assets moves straight from 1 IRA custodian to the other. That means the distribution check from the first Individual Retirement Account custodian will need to be written to the custodian or trustee of the new IRA account that gets the money. Transfers can be effected as frequently as you desire.

The other option is a “rollover.” A rollover takes place when “you” acquire the distribution coming out of your existing retirement account and subsequently shift and deposit it in the new retirement plan custodial account. In this particular situation you will want to deposit the money in to the new retirement plan account within sixty days. In the event that sixty day interval is surpassed, you might be responsible for penalties and taxes on the assets taken out. You could rollover the same funds typically once every twelve months to maintain the tax-deferred condition of your retirement account.

Are there tax implications?
There are definitely no tax complications or fines for moving a current retirement plan and transferring or rolling in to physical gold and silver. The method used is commonly referred to as a “rollover” or “transfer” (see above) and with this process you will not incur any tax ramifications or penalties on your existing retirement account.

Which Precious Metals Can Be Held in my IRA?

GOLD
American Eagle coins
• Austrailian Kangaroo/Nugget coins
• Austrian Philharmonic
• Canadian Maple Leaf coins
• Credit Suisse gold – PAMP Suisse gold Bars .999
• U.S. Buffalo Gold Uncirculated coins (No Proofs)

SILVER
• American Eagle coins
• Australian Kookaburra coins
• Austrian Philharmonic coins
• Canadian Maple Leaf coins
• Mexican Libertad coins

PLATINUM
• American Eagle coins
• Australian Koala coins
• Canadian Maple Leaf coins
• Isle of Man Noble coins

PALLADIUM
• Certain bars and rounds

Can I store the precious metals in my home?
In a word, NO. The IRS views precious metals as a currency since they can be liquidated anywhere in the world. Your retirement account precious metals must be stored in a private depository of your choice.

Can I take possession of my metals?
Absolutely. You hold title to your gold etc. and may take possession at any time. But realize that since the IRS consider precious metals as “money”, you may incur tax penalties. If you cash out before the age of 59 ½ you would incur additional penalties.

What precious metals firm can I trust?
The company I recommend  is presently the only precious metals company in industry that holds an A+ rating with the Better Business Bureau and a AAA rating with the Business Consumer Alliance, along with 0 complaints. They also have over 700 5 out of 5 star confirmed client reviews with TrustLink.com. Furthermore, this firm has been included in major publications including Smart Money, Forbes and Inc. Magazine. This company has been rated # 20 in the USA for financial services by Inc. Magazine and has been featured in the 2013 Investment Guide for Forbes .

For all precious metal purchasing counting retirement accounts this firm has one of the quickest shipping processes and typically get precious metals in the client’s custody within seven business days after account funding. Most competitors in the gold industry require over 30 days to delivery and as long as 90 days for retirement accounts.

Additionally the firm’s administering fees for the year on all IRAs are a standard $100.00. A large number of other firms in the industry employ a scaling administration cost schedule that charge the customers more as the account worth increases. Competitions likewise have the same scaling fee schedule for storage costing the client even more as the account increases. The typical competitor offers commingled storage for precious metal retirement accounts and several charge more than the segregated storage this firm offers.

Regarding processing times, this company is among the only precious metal firms that does everything electronically, which means that the customer does not need to hand sign documents. Transferring applied for funds from a custodian will generally happen within 48 business hours. The typical competitor needs to 30 days and up to 90 days to complete the transfer of funding.

The firm covers all 1st year fees for client’s retirement accounts which include the setup fees, administration fees, storage fees and shipment of precious metals. This is a savings of over $700.00 that most competitors make the consumer pay. Shortly after the client secures precious metal rates and funds, their precious metal position will usually ship to Brinks inside 7 business days.

So what’s the name of this Precious Metals IRA company?

Regal Assets:

  • A+ Rating with the Better Business Bureau
  • >700 5 star rating with Trustlink and a preferred membership status
  • AAA Rating with the Business Consumer Alliance
  • 99.9% Customer satisfaction rating
  • Official retailer listed with the U.S. Mint

Conclusion:
You already know the value of adding precious metals to your retirement portfolio and can see that the process of moving assets into a gold IRA is pretty straight forward. And as you can see from the above description that Regal Assets should be the first company you call for more information on opening a Gold IRA or precious metals purchase. I guarantee that they will gladly answer any questions you may have with no pressure or obligation.

So how does a precious metal ira work?

Visit their website at RegalAssets.com or give them a call toll free at 888-745-7957

 

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