Archive for the ‘Gold IRA rollover’ Category

Rules for Gold IRA

by IRA Rollover in Gold IRA, Gold IRA rollover with Comments Off on Rules for Gold IRA

Whether you are trying to decide what type of IRA to get or rolling over to a gold IRA, there are rules that you must adhere to in order not to incur costly penalties.  You need to learn and obey those rules or retain a custodian to help you.  Just retaining a gold IRA company isn’t enough because most of them just buy the gold that you order and make sure that it reaches an approved storage facility.

Types of Gold Allowed in an IRA

Most people unfamiliar with the rules think that you can buy any type of gold for an IRA.  However, only certain types of gold are allowed.  You can only add bullion or gold bars that come from accredited manufacturers like Nymex, LBMA, or MLE.  The gold must be at least .999% pure.  This rule, like most of the other rules about a gold IRA, is intended to protect the investor and insure that their assets are no inferior products that could compromise the wealth they are accumulating.

You may add bullion coins to your IRA but they must be distributed by certain countries and meet the standards of purity of gold bars.  The Canadian Gold Maple Leaf is allowed but South African Krugerrands are not because they don’t meet purity standards.  One tenth, one quarter, one half and one ounce U.S. gold coins are allowed but the only coins specifically permitted to be included in a gold IRA are American Gold Eagle coins of those denominations.

Gold IRA – No Collectibles Allowed!

No collectible coins other than proof American Eagles are allowed to be included in a gold IRA.  You often see advertisements for coins made of gold or other precious metals that are touted as ideal investments.  You can buy them if you like but collectible coins cannot be part of your gold IRA.  There is nothing to stop you from buying them and storing them yourself for future sale but they can’t be part of your gold IRA.  This is because collectible coins do not hold their value like gold bullion coins and they do not meet the purity standards for a gold IRA.

If you do buy unapproved gold for your IRA the IRS will consider it a withdrawal will charge you income tax on the value.  Worse, if you do this and you’re under 59.5 years you’ll also incur an additional 10% penalty.  So be careful to stick to the rules or the IRS will make it very painful.

Gold IRA – Administrative Rules

You have to have a custodian for your gold IRA or open it as a self directed IRA.  If you don’t want to administer your own IRA, choose a custodian carefully.  You need one that knows the rules and will make sure that your gold is stored safely.  Most custodians work with approved major depositories that meet federal security and safety standards.

If you don’t want a custodian and elect to open a self directed gold IRA you will have to find your own federally approved storage facility and arrange shipments accordingly.

Gold IRA – Time limits

If you’re rolling over a traditional or Roth IRA into a gold IRA you have to do so within 60 days or it counts as a withdrawal and is taxable.  If you go over the 60 days you won’t be able to access your assets for an entire year so consider your choices and timing carefully.

Gold IRA – Funding Restrictions

Any IRA has funding restrictions.  You can only put $5,000 a year into a gold IRA; you’ll have to plan to build up the funds throughout the year and watch your purchases carefully unless you want to make the entire deposit at once.

The only time you can put more than $5,000 in your gold IRA is when it is a transfer or rollover.  So if you have $30,000 in your IRA and are rolling it over into gold that is an allowable deposit.  However, you can’t put that same amount of gold into an established gold IRA all at once, it has to be made over a period of 6 years.

Opening your Gold IRA

Be sure you talk to several custodians or understand how much responsibility is involved in a self directed gold IRA and make your decision accordingly.  Plan how you’ll buy the gold, how you can structure your budget to make maximum contributions, and how you’ll time those deposits.

Above all, diversify your assets and don’t depend exclusively on gold for your retirement savings.  You are allowed to have more than one IRA or you can use an employer sponsored 401K to help diversify your assets with stocks, bonds, mutual funds, commodities, and other allowable financial products.  Although gold is the ideal way to protect your money from inflation and fickle economies, diversifying your assets will help insure that you can retire to a lifestyle that is comfortable and rewarding.

Self Directed IRA for Gold

by IRA Rollover in Gold IRA, Gold IRA rollover, Self Directed IRA with Comments Off on Self Directed IRA for Gold

Any financial advisor will tell you that you should diversify your investments and one of the best ways to do that is with a self directed IRA. One of the main advantage to a self directed IRA is that you choose how your assets are invested and make your own decisions on those investments.  This is why these accounts are becoming very popular.  Investors can diversify their assets, control the way they grow, and don’t have to be subjected to the ups and downs of the stock market.

In fact, there are over $100 billion invested in self directed IRAs and the number of accounts being opened is on the rise.  After the last big market upset in 2008 when so many lost so much of their retirement savings, the idea of being in control gained popularity.  A self directed IRA is not managed by a custodian familiar with the market that will give you advice or make decisions about your investments.  You’re the one responsible for that and frankly, it can be a lot of work.  You are required to have a custodian that is connected with a trust bank but all they do is make sure you have the proper paperwork and give you a valuation of your account each year.  How your investments grow—or shrink—is entirely up to you!

Of course, you can hire someone to help you if you know you can’t make the decisions to your advantage.  Most people choose a self directed IRA because they want control over their own wealth but many take the advice of experts until they feel that they have enough experience to go it alone.

Self directed IRA for gold

One of the advantages of a self directed IRA is that you have more options about the types of assets you can acquire and invest in.  You might choose stocks, real estate, bonds, or precious metals like gold or silver.  All your assets must to adhere to certain federal rules so you can’t invest in collectibles like art or personal property or life insurance.

A traditional 401K or IRA is also limited in the type of investments that can be made.  With one of those accounts you can choose to be aggressive or opt for more conservative investments for long term steady growth.  The problem is that you usually don’t have that many choices and if you pick the wrong advisor it could be poorly managed.  When you have self directed IRA you’re in control and can choose where the money is invested.

One of the options people are excited about is a self directed IRA for gold.  Gold approved for use in an IRA comes in various weights so that it’s affordable for people of all means.

Are There Restrictions?

There are not as many restrictions with a self directed IRA as there are with traditional IRAs.  One of the great advantages of this type of account is the liquidity.  In a traditional IRA the custodian can take up to 30 days to release any money you ask for so in an emergency you may be in real trouble.  With a self directed IRA you have access to the money you need in a couple of days because you are in charge of it.

Invest in what you believe in

You can invest in real estate that can benefit others while it brings you profits.  You can invest in new technology that can better society, or do something you love and invest in horses or other livestock.  You can invest in a cause you believe in.  The only drawback is that you can make bad investments but if you make the right decisions you can get some very good returns.

Self Directed IRA – Fees

Self directed IRAs have higher fees than traditional IRAs.  You might pay to open the account, an annual fee of several hundred dollars, holding fees for each asset and transaction fees for investments in real estate.

Be Careful How Much You Invest

It’s important to keep some money in your self directed IRA for the purpose of maintaining your investments.  For instance, if you have invested in real estate such as a property that needs a new plumbing system, the money for that must be paid from the IRA account.  If you’ve spent all your money buying the property you won’t have any to do repairs because you are not allowed use your personal funds to maintain an asset in your IRA.  All the profits from that property must go into the IRA account, not into your pocket or any other account.

Best Self Directed IRA for Precious Metals

With an IRA that uses precious metals you won’t have any costs other than storage.  Your gold and other precious metals are stored in federally approved vaults that are insured and secure.  You don’t have to maintain the metal, repair it, feed it, or worry about it.  A self directed IRA for gold is something you should consider, especially if you want to be safe from the fickle behavior of paper currency.

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The Best Place to Buy Gold

by IRA Rollover in Gold, Gold IRA rollover with Comments Off on The Best Place to Buy Gold

It’s not that simple to tell a new investor the best place to buy gold.  There are a lot of factors in figuring out the best place to buy physical gold.  For instance, if you want to hold physical gold in an IRA account there are fewer places to buy that gold than if you wanted to keep possession of the gold yourself.

Finding a Gold Dealer

There are a lot of gold dealers to choose from both online or off.  The best place to buy precious metals is from a dealer or company that you trust and that deals fairly with its clients.  Look carefully at fees and premiums and compare them from one dealer to another.  Gold dealers have a right to make a profit on their service but some premiums are exorbitant and you should avoid those businesses.

Check to see if a dealer gives you proof that your gold has been delivered, either to your home or office or to your gold IRA.  Look up any complaints that may have been lodged against them—did they resolve those complaints quickly and to the clients’ satisfaction?   Look for a dealer that has membership in the Professional Numismatists Guild so you know you’re not dealing with a scammer but an ethical business.  Some dealers that don’t handle coins but only gold bars may not be members of PNG and in that case, look for other associations they may have. Ask your friends and coworkers as well as your investment advisor for recommendations.

Can you buy Physical Gold in an IRA?

You can buy physical gold for a gold IRA but it must be stored in a federally approved facility that is both secure and insured.  You may see dealers or banks that offer to “hold” it for you but if the gold is for your IRA this type of storage is not legal.  You can have a bank or firm hold your physical gold if it is not for an IRA but it would be a very bad idea.  If the firm goes bankrupt you will have a difficulty recovering your assets.  If the bank fails you are not covered by FDIC insurance because by allowing them to store your gold you have become a creditor, not a depositor.

Use Common Sense

Although you may be tempted by lower prices, never buy uncertified coins!  Many of these appear to be bargains because they are counterfeit.

If you are making inquiries and the sales representative begins to pressure you into buying, cross them off your list.  Some will tell you to buy gold coins rather than bars because the government can confiscate the bars.  This is not true but some unscrupulous sellers use this rumor to scare potential clients into buying a pricier product.  Don’t allow anyone to pressure you and if they do, end the call or blacklist the email address.

When you are looking for the best place to buy physical gold there are many ethical and reliable dealers.  One that you should seriously consider is Regal Assets, a company that gets consistently good reviews and whose customer satisfaction is very high.

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Peter Schiff

by IRA Rollover in Gold Advisors, Gold IRA rollover with Comments Off on Peter Schiff

peter schiff

Wherever you look, people are talking about the economy and being prepared for the future.  Unfortunately, most consumers are not as prepared as they should be.  They may save and invest money but the dollar may not be worth much-if anything-when they retire.  That’s why experts like Peter Schiff endorse gold investments for a secure future.

Who is Peter Schiff?

So, who the heck is Peter Schiff?  He is a world renowned business owner and gold investor and son of Irwin Schiff, a major figure in the tax protester movement in the U.S.  After graduating Beverly HillsHigh School, Peter went on to earn a bachelor’s degree in accounting and finance in 1987 at Berkeley Hass School of Business.

Peter’s education and business experience have led him to believe strongly in the value of investing in precious metals.  His investing philosophy has gained credence as the economy continues to be unstable and the value of the dollar erodes.

How Does Peter Schiff Know So Much About the Economy?

Schiff is so knowledgeable about the economy partially due to his involvement in politics.  Unlike many financial advisors who regurgitate book-learning without real world experience, he was Ron Paul’s economic advisor and helped draft Paul’s economic revitalization plan.  Peter received endorsements from Ron Paul as well as Steve Forbes when he decided to run for the U.S. Senate in 2009.  He was defeated by Richard Blumenthal but gained valuable insight on how politics and the economy affect each other.

Peter continued his research on the economy and working closely with his father he decided that he should secure his wealth with gold and silver.  His research convinced him that was the safest and most profitable way to go as he watched the economy collapse; his projections for the value of the dollar convinced him beyond a shadow of a doubt that precious metals was the best way to plan a secure future.

Why Should I Listen to What Peter Schiff Says?

Peter Schiff founded Euro Pacific Capital, Inc. in 1997, a full service broker and dealer whose specialties are securities and foreign markets.  The company now has six offices across the United States.  Feedback from the company’s clients is nearly exclusively positive, leading Schiff to an interest in educating the public about investing wisely.  The Peter Schiff Show, broadcast online and on radio, is one way he is reaching out to urge people to secure their investments in gold before the dollar collapses.  He has also written books explaining the economy and where it is headed and done so in such a way that the average person without a college education can understand and absorb that knowledge.

Protecting Your Future 

Peter’s goal is to insure that as few people as possible are caught be surprise when the economy crashes and the dollar collapses.  His goal is not entirely altruistic, however.  He points out that the more people who have secured their wealth with precious metals, the better off he and everyone else will be!  He’s not just talking about millionaires, either—anyone can grow a little money by investing it wisely and turning it into a comfortable nest egg.

Schiff is encouraging people to have a gold backed IRA and to invest in gold and precious metals to secure their financial future.  There are scores of companies that will help you achieve that goal.

Visit our Top Gold IRA Company Comparison Page 

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Laura Ingraham

by IRA Rollover in Gold Advisors, Gold IRA rollover with Comments Off on Laura Ingraham

 

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Laura Ingraham recommends Regal Assets

Rolling Over 401K or IRA – Things to know and how to do

by IRA Rollover in 401k, Gold IRA rollover, Roth IRA, Traditional IRA with Comments Off on Rolling Over 401K or IRA – Things to know and how to do

When considering rolling over 401k and IRA it is important to look at all your options, weigh them carefully, and know exactly what you’re doing – otherwise you risk being taken advantage of in a bad deal or committing to earn less than you should be getting.

This process is easier to begin if you know which type of account you’d like to open.

401k Definition and IRA

An IRA (Individual Retirement Account is a privately funded account that you deposit money into yourself, at your own discretion. A 401k is an account that is set up by your employer, where a portion of your paycheck is deposited into it, and oftentimes your employer contribute as well.

Types of Plans

There are many different options to consider when choosing your retirement accounts.

IRAs

  • Traditional IRAs – A traditional IRA is the oldest  and most widely used type of account. The money deposited into your account qualifies for a tax deduction. This amount is sheltered from taxes until withdrawn – whenever that may be. This allows you to hold onto dividends, interest income, capital gains and rental income. When money is withdrawn, however, you must pay taxes on it (the same amount you would pay from your paycheck).
  • Roth IRAs – Roth IRAs give you much more freedom than a traditional plan, allowing you to deposit cash without a tax deduction, but the money from that will grow in your account tax free.  You will not owe the government any money when you withdraw – which can begin at 59.5 years of age.
  • SEP IRA – This type of account is often used by self-employed individuals who have few or no employees in their company. It uses the same basic rules as the traditional IRA but you may contribute much higher amounts.
  • Simple IRA – Used mainly by small business owners, a simple IRA touches on all three types of accounts. If you are less than fifty years of age you may contribute up to a certain amount, while those over 50 can allocate more.

401Ks

  • Traditional 401k– A traditional 401k offers the most flexibility in its options. It gives employers the option to make a 401k contribution limit that matches the employees’ deposits, or they can make  one contribution on behalf of all. It also allows employees to make pre-tax elective deferrals. It can be used by any sized company and can be combined with any other retirement plan.
  • Safe Harbor 401k – A safe harbor 401k plan means that the employer must provide contributions that are fully vested when made. It is subject to the same tax rules as the traditional, but it is for companies of any size, and may be combined with other plans.
  • Simple 401k – A simple 401k is available to employers who have 100 employees or less, who were paid at least $5,000 in income the previous calendar year. The employer is required to make contributions
  • Roth 401k – Roth accounts allow the employee and employer to contribute savings without income restrictions. Taxes must be paid up-front, eliminating the need to pay them down the road, but there are no special prerequisites to obtain a Roth.

Rollover Options

Now that you’ve chosen your account, you can consider some rollover options for both types.

  • 401k and rollover IRA– Many people choose to rollover their 401ks into their IRAs because of the increased amount of freedom it gives them and the money it may save in fees. You also have the option to switch between brokerage firms to take advantage of different features and benefits available in IRAs. This allows your retirement savings to grow tax-free.
  • Keeping Open – keeping cash in your current plan, even when switching employers can benefit you if your current deal has low-fee investments that suit you. You will have to ask your financial consultant if this is possible, and whether or not there would be fees involved. Also consider asking if there would be implications to rolling over this plan later on.
  • Rolling Over to your new 401k – You will have to work with your new 401k company’s administrator to make the process go as smoothly as possible. This is the best option if your new plan would offer better benefits than your current one, or than an IRA.
  • 401k early withdrawal – This option may seem attractive at first, particularly if switching employers means your salary will be cut – but it is most often the worst choice to make. You might be subject to a 10% early withdrawal fee, you will have to pay taxes (federal and state) when you withdraw, and if the amount is great enough, it will push you into a higher tax bracket, meaning increased taxes at the end of the year.
  • Gold IRA Rollover – While making an investment in gold, or transferring your funds into a gold IRA may seem like a good invest in goldidea, a rollover is usually a safer bet when you want your cash backed by gold. You will need to check with your employer first (some do not allow investment in gold from a rollover 401k). You will also need to decide if you’d like your deposit to be in physical gold – this will require an IRS-approved storage facility being used. The gold must also be 99.9% minimum purity, and can include coins such as the American Gold and Silver Eagle, or bars like the Credit Suisse gold bar.  Another option, Gold ETF, doesn’t require you to keep physical gold, but it is more like a stock than actual gold bars or coins – it could have a much lesser value than physical gold, as well as increased risk of prices falling.

Overall, there are many options to consider when not only investing in a retirement plan, but when choosing to rollover to a new one. Whether you’re rolling over a 401k or an IRA, be sure to look at all aspects of your situation, your possible future options and scenarios, and your backing options to ensure that you will retire comfortably, without worry or stress about your financial health.