Gold IRA Rules – So You Can Make A Safe Investment
A great way of securing your retirement savings is by investing the money in buying gold. There are other precious metals too that are available for investing but gold has the best reputation among all. Not to mention, people want to invest in gold not because they like gold but because it is a winner in the market when it comes to hedging against volatility. Before you rollover to a gold IRA or transfer your existing retirement account, you need to know a few gold IRA rules. Following gold IRA rules should help you in managing your gold IRA in a better way.
Gold IRA Rules
· The best of all gold IRA rules is that you are the controller of your investments. Your custodian cannot invest your retirement funds where it considers suitable. It is you who will decide where your money goes.
· It is in the gold IRA rules that you can invest in other precious metals too. Gold is not the only precious metal eligible of investment with a gold IRA.
· The rollover is performed tax free. Whatever you deposit into your gold IRA is also tax-deferred. However, taxes must be paid when you make the final withdrawal of gold from your account.
· You could put coins, bars and gold ETFs in your gold IRA. However, it is highly recommended that you read the gold IRA rules of the institution you are choosing for your gold IRA.
· You have to be 59½ before you could withdraw gold from your account without any penalties.
· Withdrawals are possible even before you have reached the age of 59½ but only if you are okay with heavy penalties of these withdrawals. You will end up paying 10% tax on your withdrawals if you haven’t reached the eligible age.
· Only gold that is 99.5% pure is allowed for you to store in your gold IRA. Certain percentages of purity apply to other precious metals too.
· Certain circumstances, severe medical conditions for example, allow you to take money from your gold IRA with little or no tax.
· You must make arrangements of a depository where your gold will be kept before you buy the gold. Some custodians do not allow physical gold to be stored so beware in this scenario.
· The assets you have in your retirement account can only be rolled over once in 12 months so you have to make the right choice after proper research before making a rollover.
· The depository where your gold will be kept has an annual fee. This could be a fixed annual fee or a fraction of the percentage of your funds in the account. You cannot hold gold in your possession if you are the owner of the account.
Gold IRA Rules – Final Thoughts
Gold IRA rules must be read in fine print or online if you are thinking of rolling over your current retirement account to a gold IRA. The gold IRA rules are not difficult to understand but some can be confusing. It is greatly advised that you read about the allowed coins and bars before making an investment. The gold you have in your possession even before rolling over to a gold IRA cannot be stored in the account. This gold is your income and it will attract taxes and is not allowed to be put in your gold IRA. It is best that you talk to your custodian about its particular gold IRA rules too since some regulations can change from bank to bank. Use online resources to stay well informed.
What Is a Gold IRA
Gold IRA Rollover Rules
Precious Metals IRA Rules