Gold is a haven asset that has been used as money for thousands of years. It acts as a hedge against inflation and market volatility, making it an attractive part of your retirement assets. There are several types of gold IRAs available to investors: the traditional IRA that follows all rules related to taxable income, Roth IRA contributions through conversion of other assets, and the recently introduced gold-backed IRA. This article outlines tips for adding gold to your IRA in all three forms.
Types of Gold IRAs:
1 Traditional IRA:
– Add gold to your existing traditional IRA. You can transfer in or rollover other retirement assets, such as stocks and bonds, into the gold IRA account. Your custodian will provide you with the appropriate paperwork for this transaction; usually, an I-60 (trustee report) must be submitted along with a W-87, a particular form for gold and silver to be used in the IRA.
2 Roth IRA:
– You can convert other retirement assets, including stocks and bonds, to your Roth IRA. Your custodian will provide you with the proper forms for this transaction; usually, an I-604 (trustee report) must be submitted along with a W-89 gold certificate.
– You can hold physical gold as part of your IRA instead of a paper asset certificate.
– Gold will have to be stored at a third party for security and custody, so check on fees related to storage and insurance costs.
– You may want to include other commodities for balancing your portfolio, including silver or platinum, depending on what you’re looking for.
– Choose a reputable gold dealer for your IRA transactions to avoid any tax complications or illegalities down the road.
– You can hold non-traditional assets in an IRA, including real property, private company shares, and limited liability companies (LLCs).
– If you have a Roth IRA, it’s possible to do a direct transfer from another IRA without incurring taxes.
– If your account is worth more than $250,000 or growing at an annual rate of over $15,000, the IRS will require additional documentation for tax purposes.
– Keep records of all transactions and statements related to your IRA.
– You can get help with your investment decisions or set up an IRA through a financial advisor.
In conclusion, there are several ways to add gold to your IRA. For example, you can invest in physical bullion through a traditional or gold-backed account, convert other assets into an IRA that includes gold, and hold non-traditional investments like real estate within the retirement account.