Gold, Silver, and Your IRA
As the nation considers the results of the last election, the last decade of federal spending, and the upcoming “fiscal cliff,” more and more investors are looking for safe-havens for their long term savings and retirement money. Many investors are concerned about what will happen to the future of their 401K, IRA, or other tax-sheltered account. Fortunately for gold/silver buyers, there’s good news. Current rules allow investors to put almost any kind of tax deferred money into physical gold and silver. Not just a gold ETF or fancy trading account that represents “virtual” gold or silver, but you can actually own physical gold/silver coins (or bars) in your retirement accounts.
Here’s how it works. Let’s say you have an IRA with $50,000 in it, and you don’t like the risk of the stock market or the pathetic returns offered by savings and money market accounts. You can transfer that IRA money into a special Precious Metals IRA Account and use the $50,000 to buy physical gold or silver bullion. The funds are spent by your IRA custodian to purchase the bullion on your behalf, and then the bullion is stored in a secure vault in a US-based depository in your name. Those coins will sit there on the shelf in that vault with your name on them until you choose to take a disbursement from your IRA. That disbursement will be governed by all the normal rules on eligibility (including age, qualified expenses, etc.).
The good news is that if things ever get really bad and you’d like to take physical possession of your gold/silver yourself, you can tell the depository to ship you your coins/bars (subject to any appropriate penalties and take an early distributions). It’s just like taking a cash distribution from your IRA, except instead of getting a check in the mail, the coins are shipped directly from the depository straight to your door within a couple days of your request. Pretty simple!
And as always, any first-time buyer that invests in gold and silver and mentions the “GoldStockBull” website will receive a FREE silver coin with their first purchase, and that includes IRA purchases! Call us at 800-558-4671 to get started.
Details about Different Kinds of Accounts
· You must store the metals in a third party depository until you take a disbursement from your IRA
· You can create and fund a new IRA, or rollover an existing IRA
· Only a few IRA custodians allow for Precious Metals IRA Accounts (most IRA custodians are not flexible enough to allow for precious metals purchases), so contact us for help on choosing who to work with
· These are treated like traditional IRA’s, except your tax liability and distribution rules are different because you’ve already paid taxes on the money
· If you have an old 401k from a company you’ve left, you can roll that over into an IRA and put the money into precious metals
· If you are self-employed, you can have a self-directed 401k that allows you to put your money into gold and silver, and you aren’t required to store the metal at a depository (you can store the metal yourself)
· If you have an active 401k and you are not self employed, contact us to see if your 401k rules allow you to put money into physical gold and silver
Getting Started – 4 Steps
Open a new IRA account with one of our recommend IRA custodians. Contact us for more information on choosing a custodian. Depending on which custodian you choose, you will also pick a 3rd party secure depository to store your metals at. Popular options include Delaware Depository Service Company, Dakota Depository, and Idaho Armored Vaults. Storage fees will vary based on your custodian and account size.
Fund your new IRA account. You can fund your new IRA account with a check or bank wire from your personal funds, or you can rollover funds from your existing IRA account. (For 401k rollovers and other advanced rollover options, please contact Cornerstone’s president Chad Roach at 800-558-4671.)
Once your new IRA Precious Metals account is funded, place an order with us for the precious metals coins/bars you would like to buy.
Once you finalize the order with us, your IRA account will pay us for your order, and we will ship your metals to the depository in your name. You’re done!
Will my current IRA custodian let me put money in precious metals?
Probably not. All the major IRA custodians generally aren’t set up to oversee accounts like this, so you will have transfer funds from your current IRA into a Precious Metals IRA account. The primary custodians that handle Precious Metals IRA Accounts are Entrust, Sterling Trust, and GoldStar. Contact us and we can put you in touch with the right person.
What Depository should I choose and how much will it cost?
That’s up to you and your IRA custodian. Most depositories charge $100-200+ per year for insured storage, depending on the amount of metal being stored. We recommend Dakota Depository, but it’s up to you to search for the depository that suites you best.
What happens when I close my IRA or I want to take delivery of my metal?
When you are ready for the metal to be shipped to you, you notify your custodian that you want to take a disbursement from your IRA account. (It’s like taking a cash disbursement, just with gold/silver coins instead.) The depository storing your metals will ship your metals to you, and your account custodian will help you pay any applicable taxes and fees. If you want to cash out your gold and silver, then call us and you can instruct the depository to deliver your metals to us, and we will send a bank wire with your funds.
For more information, visit www.CornerstoneBullion.com or call 800-558-4671, and don’t forget to mention “GoldStockBull” for your free silver coin!
* Please note, we are not financial representatives and nothing in this article is intended to be construed as advice or recommendation of any particular financial decision.