What is a Gold IRA?

A gold IRA is an individual retirement investment account in which some percentage of its allocation is in real gold. In order to classify as a gold IRA, these accounts cannot hold paper-based gold assets alone (i.e., mining stocks or ETFs)—rather, they must include physical bullion such as gold bars or sovereign-minted coins.

Even an IRA that allocates a mere 5% to gold bullion and the remaining 95% to stocks and bonds meets the criteria of a gold IRA. Simply put, any IRA is a gold IRA as long as some share of its value consists of physical gold assets.

The Purpose of a Gold IRA

Like all IRAs, gold IRAs provide special tax benefits for their owners. Traditional gold IRAs consist of pre-tax assets for which taxation is deferred until withdrawal, whereas Roth IRAs are made up of after-tax assets which grow tax-free.

Assets held within a Roth IRA are free from long-term capital gains taxes, whereas traditional IRAs are deducted upon deposit but taxed at withdrawal.

These tax benefits especially tempt precious metals investors. This is because investors typically hold gold and silver assets long-term and can accrue a large tax liability at the time of sale. Thus, gold IRAs allow investors to contribute to their retirement nest egg on a tax-free basis while diversifying with alternative assets that can help manage risk.

Diversify your retirement with Preserve Gold’s Precious Metals IRA.

We have thoroughly vetted IRA custodians and storage facilities throughout North America to provide the best Precious Metals IRA options for all our clients. A Precious Metals IRA allows you to utilize the tax savings of a retirement account while holding physical gold, silver, platinum, and palladium in your account. A self-directed IRA allows you to take control of your retirement with the diversification features of tangible gold and silver while maintaining the benefits of tax deferment.

Eligible Accounts

Eligible accounts include:

  • Traditional IRA
  • Roth IRA
  • Traditional 401(k)
  • Roth 401(k)
  • Thrift Savings Plan (TSP)
  • 403(b)
  • 457(b)
  • Simplified Employee Pension (SEP)
  • Savings Incentive Match Plan for Employees of Small Employers (SIMPLE)
  • Tax-Sheltered Annuity (TSA)
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Diversification of a Gold IRA

Perhaps the main advantage of a gold IRA is that it provides unique risk management capabilities for retirement investors. As we near our target retirement date, we must manage risk accordingly. In particular, it’s important to reduce the chances of losing our financial resources when we need them the most—during retirement.

A simple stock market downturn or overnight sell-off could delay your retirement by years if you’re overexposed to stock market volatility. Knowing this, many investors nearing retirement choose to diversify their holdings to minimize their exposure to stock market risk.

The underlying premise is that gold has a low correlation (about ~0.25) to the stock market. Therefore, it functions as an extremely useful hedge against stock market volatility. Statistically, gold bullion markets stand strong when the stock market rises or falls in value, thereby fortifying an investor’s portfolio from erratic swings.

Why Gold?

Gold has a long history as an investment and, more than that, as a reliable store of value. Dating back to 550 BC during the reign of King Croesus in modern-day Turkey, gold has been used to mint official coins and serve as a medium of exchange.

Given gold’s unique properties as a scarce, ductile, reflective, brilliant, and malleable metal, it has long been considered a prized commodity throughout the world. On top of that, its thermal and electric conductivity make it highly coveted as a modern industrial asset.

For retail investors, gold has come to be regarded as a disaster hedge. When the U.S. stock market experiences sustained downturns, the spot price of gold tends to perform positively.…

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What Is A Home Storage Gold IRA? 

Precious metals IRAs are typically self-directed IRAs, where the custodian allows you to store a broad range of precious metals investments. This includes storage options for IRS-approved coins and bars in gold, silver, platinum, and palladium.

As the name suggests, a home storage gold IRA allows you to invest in gold and other precious metals and store them at home. Unlike a traditional precious metals IRA account, where the assets are stored in a depository, this option lets you store your physical assets at home.

Is A Home Storage Gold IRA Legal ?

A simple answer to this is ‘No.’ In fact, the IRS has specific criteria for what they deem “acceptable storage” of precious metals within an IRA. If the IRS determines that your chosen gold IRA storage method doesn’t meet their standards, you could potentially face substantial tax penalties.

No need to worry if you’re unfamiliar with acceptable storage options according to IRS regulations. We will delve into this topic later on.

Managing risk in this way is critical to long-term success as a risk-averse investor. Unless you can diversify the categories of risk to which you expose your wealth, you run the risk of taking significant losses due to market events that can disrupt your retirement plans.

The Custodian Requirement

A Gold IRA custodian is a financial entity that holds and protects the physical gold in your retirement account (IRA). These custodians help you open a gold IRA investment account while ensuring that your gold investment and its storage comply with Internal Revenue Service (IRS) regulations.

Your gold IRA custodian will help ensure proper maintenance and management of your gold assets, handling all the work for you while you own gold in your IRA account. This is especially beneficial compared to owning gold in self-custody, where you would have to go through the hassle of managing, securing, insuring and maintaining your assets.

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