If the US economy tips into recession, gold demand could surge even higher, helping push the gold price higher too. And those who had the foresight to protect their finances with gold could benefit greatly.
One popular method of buying gold is through a gold IRA. Gold IRAs offer you the ability to protect your wealth with physical gold coins and gold bars, while still enjoying the same tax advantages as any other IRA account.
But gold IRAs aren’t a commonly available investment vehicle at most brokerages, and many Americans aren’t familiar with them. That’s where a gold IRA kit can come in handy.
A gold IRA kit details many of the advantages of gold IRAs, the benefits of owning gold, and the performance of gold during financial crises. If you’re interested in buying gold as a safe haven asset, read on to learn more about gold IRAs and how to get your free gold IRA kit.
Key Points to Consider
- Gold is a trusted safe haven asset
- The gold price has hit numerous all-time highs in recent months
- Starting a gold IRA can be one way to help protect your wealth
What Is a Gold IRA?
Gold IRAs function the same way as any other IRA account, and offer the same tax advantages. Gold IRAs can be Traditional IRAs, using pre-tax dollars, or Roth IRAs, using post-tax dollars.
With a gold IRA, you use the assets in your IRA to buy physical gold bars or gold coins, which then accrue gains tax-free. You only pay taxes when you choose to take a distribution or, in the case of a Roth gold IRA, your qualified distributions can be made tax-free.
How Does a Gold IRA Work
Gold IRAs work in the same way as any other IRA. And one of the most popular ways to fund a gold IRA is through a 401(k) to IRA rollover.
If you’ve ever rolled over money from a 401(k) account or similar retirement plan into an IRA, you know how the process goes. But if you’ve never done that before, here’s how it works.
To start the rollover process you contact your existing plan administrator to start the rollover process. In most cases there is a process already in place to start rollovers, since rollovers from 401(k) to IRA accounts are relatively common.
Once you file the proper paperwork with your plan administrator, get any needed signatures, and tell your plan administrator where you want the funds sent, it’s up to your plan administrator to send funds to your new gold IRA custodian.
A 401(k) rollover could take anywhere from a few days to as much as two weeks to complete, depending on the process your plan administrator has in place. And once the funds reach your gold IRA, you can use those funds to buy physical gold coins or gold bars.
But there are a few gold IRA-specific issues that you need to know.
Gold IRA Rules
Gold IRAs abide by all the same rules and regulations that other IRA accounts do. But there are some key rules that apply to gold IRAs that you don’t normally come across in other IRA accounts.
IRA-Eligible Gold Coins
Like all IRA accounts, gold IRAs are prohibited from acquiring collectibles. These can include wine, rugs, paintings, and even metals and coins.
For most IRA investors, that’s not an issue, as they’re intending to buy stocks, bonds, or shares in funds with their IRA assets, not vintage bottles of Châteauneuf-du-Pape or sketches by Rembrandt.
And while IRAs are generally prohibited from acquiring metals and coins, there are some key exceptions, codified at 26 U.S.C. 408(m)(3).
IRAs may acquire Gold, Silver, and Platinum American Eagle coins minted by the US Mint, as well as any gold, silver, platinum, or palladium bullion which exceeds the minimum fineness for a contract market.
In the case of gold, this means that any gold coins or gold bars with a minimum fineness of .995 or higher (99.5% pure gold) are IRA-eligible.
So once you start your gold IRA, you can acquire Gold American Eagles, Gold Canadian Maple Leafs, or any of the gold coins that Goldco gets directly from the mints that produce them. But classic older coins, such as pre-1933 US gold, French and Swiss 20 Franc coins, or South African Krugerrands, are not IRA-eligible.
If you were to acquire one of these non-IRA-eligible coins with IRA assets, it would be considered a distribution of IRA assets, and could cost you both taxes and penalties.
That’s why it can help to work with a trusted partner like Goldco, since we offer IRA-eligible and guaranteed authentic gold coins directly from the mints that produce them.
IRA Custodian and Gold Storage
Like all IRA accounts, your gold IRA assets must be administered by a custodian. Most IRA custodians don’t offer gold IRA custodial services, so you’ll need to find a custodian that specializes in or that offers gold IRA services.
That’s where working with Goldco can help, as we have years of experience working with the most popular and most trusted gold IRA custodians in the industry. Working with Goldco to find your gold IRA custodian can save you a lot of time and effort.
Your gold IRA assets will also need to be stored at a bullion depository. Goldco works with trusted and experienced bullion depositories to ensure that your gold IRA assets remain safe and sound.
Contributions
Contributions to a gold IRA are the same as to any other IRA, and they’re limited to $7,000 per year, or $8,000 if you’re over age 50. But rollovers from a 401(k), 403(b), TSP, IRA, or similar account to a gold IRA are exempt from these limitations.
You could roll over $10,000, $100,000, or even $1,000,000 to a gold IRA if you wanted to. And that can help build up your gold IRA faster than if you relied solely on annual contributions.
Distributions
Distributions from a gold IRA are the same as with any other IRA. If your gold IRA is a Traditional gold IRA, you must start taking required minimum distributions (RMDs) at age 73.
If your gold IRA is a Roth gold IRA, you aren’t required to take RMDs. And early distributions from Traditional IRAs, before age 59½, are subject to potential taxes and penalties, just as with other IRAs.
You can read more about IRA distribution rules at the IRS website.
When you choose to take a distribution from your gold IRA, you can choose to take it either in cash or in gold. That way, if you wish to continue owning gold outside an IRA, you can do so.
Get Your Gold IRA Kit Today
Starting a gold IRA doesn’t have to be difficult. And it can be a powerful way to help protect your financial well-being through times of high inflation or financial turmoil.
The first step towards a gold IRA is learning more about gold IRAs with your free gold IRA kit. And there are two ways you can do that.
The first is to call Goldco today and request your free gold IRA kit from one of our representatives. Not only can our representatives send you a free gold IRA kit, they can also answer any questions you may have about gold IRAs, the rollover process, or even direct cash purchases of gold coins.
If you’d rather not talk to anyone yet, the second way to get your free gold IRA kit is to head to our website and request your free wealth protection kit. This wealth protection kit explains all the benefits of gold IRAs, the advantages of owning gold, and goes through the simple steps it takes to buy gold.
If you’re worried about how markets are going to perform over the next year or two, and you want to start protecting your hard-earned money, now is the time to start thinking about gold.
Don’t wait any longer to do it – get your free gold IRA kit today and start learning more about how you can safeguard your financial future with gold.