Including Precious Metals in Your IRA
Individual Retirement Accounts (IRAs) and other self-directed retirement accounts are wonderful vehicles for building retirement assets. They are exempt from all capital gains taxes, which, if your investments perform well over several decades can result in enormous savings. In addition, in a traditional IRA the money you invest is subtracted from your taxable income, although you pay income tax on withdrawals during retirement.
Diversifying your retirement portfolio with Precious Metals can be an insurance policy against such events as wars, inflation and deflation, downturns in the stock market and the US dollar. Precious Metals often yield large profits in these kinds of circumstances.
Once you decide that you want to include Precious Metals in your retirement planning, you need to determine how much you want to invest. “How much” depends on your annual contribution, your personal goals and your individual investment philosophy. Factors to consider are your age, total assets, and risk tolerance.
PRECIOUS METAL IRAs
Protect your retirement from catastrophic events, downturns in the stock market and the US dollar
Establishing an IRA
Setting up a self-directed IRA is quite easy. Call your Miles Franklin Ltd. broker at 800-822-8080 and request a list of IRA custodians. Afterwards there are only three steps to follow.
1. Complete and submit the IRA custodian supplied paperwork for the creation of your self-directed IRA.
2. Fund the account by completing the proper forms to transfer funds from your existing IRA or Qualified Retirement Plan.
3. Direct your Miles Franklin broker to purchase precious metals for your IRA account. After funds are received from your IRA company, the metals are delivered to the designated depository and the IRA investment is complete.*
*Annual storage fees do apply. Consult with the IRA custodian for fee schedules.
What is eligible for a Precious Metals IRA
American Gold Eagles are the only gold coins specifically approved for IRAs. Other gold coins, to be eligible as IRA investments, must be at least .995 fine (99.5% pure) and be legal tender coins.
This provision puts Canadian Gold Maple Leafs, Australian Kangaroo Nuggets, Austrian Philharmonics, and the Perth Mint’s Lunar Series on the approved list. Also approved are, minimum .9950 fine gold bars, fabricated by refiners approved by The Commodities Exchange (COMEX).
Conversely, many gold coins, such as Krugerrands (91.67% pure) and old U.S. gold coins (90% pure), are not legal investments for IRAs.
American Silver Eagles are the only silver coins specifically approved for IRAs. The .999 fine clause makes Canadian Silver Maple Leafs, Australian Kookaburras and the Mexican Libertads also eligible. Bullion bars are acceptable as long as they were fabricated by COMEX or NOMEX approved refiners. Pre-1965 U.S. 90% silver coins, also known as Junk Silver are not eligible for IRAs.
Platinum coins are eligible for your IRA as well. American Eagle Platinum bullion coins, including proof versions are the most commonly used in IRA’s. Also acceptable are minimum .9995 fine platinum legal tender bullion coins such as the Australian Koala, Canadian Maple Leaf, Isle of Man Cat, and Isle of Man Noble. Platinum bars that are minimum .9995 fine and fabricated by refiners approved by The New York Mercantile Exchange (NYMEX) are acceptable as well.
Last but not least, minimum .9995 fine palladium bars, fabricated by refiners approved by NYMEX are accepted.
The Distribution Golden Bonus
Precious Metal investments offer a stable foundation for safety and security. Once an investor reaches age 70 1/2, a required minimum annual distribution will apply. Here is where a little planning comes in handy! Believe it or not, when it is time to receive your required distribution, you can actually take it in the form of the metals from your IRA account. For this reason, we love the American 1/10th oz. gold eagles and the American 1 oz. silver eagles, so when the time comes, you can maximize what you can take out in actual gold and silver. You will be responsible for any shipping charges if you choose that option.
Please call Miles Franklin Ltd. at 1-800-822-8080 if you wish to purchase precious metals for your IRA.