As people look for the best ways to create a reliable retirement account, the gold IRA is becoming an increasingly popular option. However, this doesn’t necessarily mean that everyone is clued in to exactly what a gold IRA is, and how it can provide greater benefits than your standard IRA. To become better educated about your retirement options, we’ve amassed all of the information you could want on gold IRAs. We hope this helps you make the correct decision for your financial future.
Basic Facts
- Your gold IRA can be created as a traditional IRA or a Roth IRA. This means that your gold IRA will come with the very same tax advantages and obligations as those set forth in standard forms of IRA accounts. To elaborate, a gold IRA created as a Roth IRA will be taxed now, and a gold IRA created as a traditional IRA will be taxed when it comes time to withdraw.
- Gold IRAs allow you to roll retirement plans that qualify—like a 401(k) or a 403(b) obtained through previous employment—into the account without a penalty.
- When it comes to a gold IRA, you are the actual owner of any gold and precious metals that are put into your IRA.
- Gold is not the only precious metal that you can invest in. Silver, palladium, and platinum are also available for investment purposes, and give you additional avenues for creating a portfolio that is protected against economic hardships and a fluctuating market.
- The price of gold typically moves opposite to that of paper assets, which makes a gold IRA a wise and lasting choice when it comes to protecting your retirement portfolio against the effects of inflation.
- To create a gold IRA, you will need the assistance of a broker, who will buy the gold, and a custodian, such as a bank, credit union, etc., who will create and administer your account. Your gold will be stored with whatever custodian company you choose, so be sure that it embraces transparency, has high rankings from third parties like the Better Business Bureau, carries all necessary qualifying licenses and insurance, and has flexible plans for each client’s needs.
Little-Known Facts
Your IRA Is Protected from Creditors
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 provides an exemption to IRAs, which allows them to be removed from the bankruptcy estate, meaning that you won’t be made to give up the gold in your IRA. An exception to this rule can be found when the IRA money came into the account through means of a received inheritance. Another exception is that you are only excluded up to one million dollars for the sum total of your IRA assets, though a judge is able to alter the exact excluded dollar amount.
IRA Beneficiary Designs Trump Your Will
IRAs are not paid out per the wording of your last will and testament or a trust, because IRAs have their own beneficiary designation. This means that the passing on of your IRA is absolutely determined by the IRA designation, and not by any direction placed in a will, regardless of wording used therein. This particular designation is set up when you first open your IRA, and you are able to modify it later if you wish. Beneficiary designs are not unique to IRAs and accompany nearly all retirement accounts. Additionally, your spouse is the only one who will be able to inherit your IRA and act as if it belonged to them. This means it is of great advantage to list your spouse as a beneficiary of your account.
Using Gold to Protect Your Retirement
When you opt to make a purchase of physical gold with your investment funds, you give yourself the chance to gain a profit regardless of the state of bonds and equities. The dollar value has no impact upon the enduring value of precious metals. This is also true when faced with varying economic trends and climates—precious metals have held their value for thousands of years, and will continue to do so in your investment portfolio, providing peace of mind and assurance for the future.
Choosing to create a gold IRA will provide you with all of the benefits of a retirement account, while ensuring your investment will maintain its value, regardless of the current economic situation. As with any investment decision, selecting quality advisors who have plenty of experience and expertise is a must when it comes to planning for your financial future. Finding a reliable partner to help you build a gold IRA can make all of the difference for the path to a reliable retirement account, and peace of mind while you are on that path.
