Why Add Gold and Silver to Your IRA Account?

Adding precious metals to Individual Retirement Accounts (IRA) was made possible by the Tax Payer Relief Act in 1997. This now includes gold, platinum, and silver. As a method to achieve diversification of investment funds, some account holders place gold in their IRAs. As a general rule, when stock prices drop the price of gold rises. This can even out the value of your portfolio in a weak period for the stock market.

Steps to Take:

1. Inquire of your IRA custodian if you have the right type of account you can add gold too. Some plans do not allow this. In which case, you need to start a new silver-gold IRA.

2. Choose a custodian who has a lot of administration experience with gold-silver IRA plans. It is possible to add silver or gold to most types of IRAs, including Roth, traditional, simplified incentive match plans for employees (SIMPLE) and simplified employee pension (SEP) plans.

3. To open a silver-gold IRA account, send the signed paperwork to your new IRA custodian. Usually the charges will also include a storage fee for any silver or gold coins you keep in your account. Your gold has to be stored with an approved depository pursuant to current IRS rules, which has to be in a completely different location than your IRA custodian's location.

4. To initially fund your gold account you just transfer funds from your bank account to your IRA account. If you desire to roll funds over from a 401(k) or company retirement account your custodian can instruct how to do this, it's quite easy and they can accomplish it in one day.

5. You may want to determine if you desire to buy gold mining stocks or silver and gold coins and will have to inform your custodian to purchase them for you from the funds in your account.

Current Tax Rules RE: Precious Metals in IRA Accounts

1. Investments in Collectibles
Collectible coins are transactions prohibited via an IRA account according to the IRS. Purchasing any collectibleted bullion, are acceptable. Any coins not designated qualified minted investments by IRA regulations need to be bought with funds outside your IRA and held outside of your IRA account to avoid a penalty.



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