Adding Gold and Silver To Your Retirement Account

Investment experts agree that it is never too early, or too late, to plan for one’s retirement. Whether the method chosen is an IRA, 401(k) or similar investment means, it is just as important to carefully choose the asset that will back the investment vehicle. Many investors are choosing gold to serve this purpose via gold IRA’s also known as precious metals IRAs.

What is a Gold IRA?

The concept itself is quite simple. A gold IRA simply replaces a traditional IRA backed by stocks or similar instruments. The United States government allows precious metals to be held in a retirement account. That means workers are allowed to balance the risks inherent in accounts backed only by stocks or bonds by acquiring gold, silver, or other precious metals.

Many really informative websites on the internet include various charts outlining what the value of a $33,000 investment in gold made in 2001 would be worth today. The answer is an astounding $175,155.64. While wise investments in other instruments may have yielded similar results, the point is that gold, when viewed as a long-term investment, has historically produced significant yields for investors seeking to balance their portfolios and, at the same time, possess an asset that offers other potential benefits should the value of other instruments suffer during a catastrophic event.

gold ira
Retirement Nest Egg

According to the U.S. Internal Revenue Service site, holding a variety of gold coins as well as gold bullion, many currently available silver coins and silver bullion, some platinum coins and bullion, as well as palladium bullion, are all considered acceptable for retirement accounts. While gold and silver are the most common assets held, some investors may see an advantage in holding the other allowed metals as well. Again, the point is to balance the risks to reduce the odds of losses.

To get started, transfers or rollovers can both be used to initiate a gold IRA. Many gold ira companies work with clients to make the process easy and seamless, but there are a couple of issues investors need to remember.

There are specific rules that must be followed with any type of IRA, and failing to adhere to the rules can result in significant penalties, so make sure the regulations will not prove to be detrimental to your overall retirement goals. Financial advisors can go over the regulations to ensure a plan fully meets all the required terms. Read more on the topic here:

What is a Gold IRA Rollover?

A gold IRA rollover occurs when one retirement account is closed and the proceeds are distributed to you with the intent they be deposited in another custodial account. The website has a pretty good basic description of the process. The major caveat is that the proceeds from the original account must be deposited in the new account within 60 days to avoid significant tax penalties.

What Types of Retirement Plans Can Rollover to Gold or Silver?

The regulations currently allow both IRAs and 401(k) accounts to rollover to gold and silver. While there are distinct advantages to holding precious metals as part of a retirement strategy, be sure to discuss the specific long-term strategies with an investment expert before deciding which retirement accounts to rollover to gold or silver. In addition, SEP IRAs, TSPs (Thrift Savings Plans), Public Employee 457(B) and 403(B) plans as well as tax-sheltered annuities can all be rolled over to gold and silver IRAs.