There are many benefits to investing in gold, especially all the different ways you can invest in it. Even though investing in gold takes minimal experience or knowledge, knowing what you are getting into to protect yourself and your investments are essential. Whether you purchase it to keep as a collectible and store it in your home or choose to invest in a precious metals IRA, there are rules you need to follow. Gold that has been invested in using toward an IRA needs to follow a strict set of rules and guidelines for the IRS to approve it. If you are interested in a gold IRA and want to learn more about why gold storage matters, keep reading.
What is a Gold IRA?
By rolling over your IRA, 401(k), 403, TSP, or 457 Plan into a Precious Metal IRA Account, you can enjoy the same profits you would gain by purchasing gold or silver directly while also enjoying the benefits that your retirement account provides. Some of these benefits include favorable tax benefits, as well as peace of mind that you and your savings will be protected for the long term.
According to Forbes, a precious metal IRA is a particular form of self-directed individual retirement account. Self-directed IRAs allow you to invest in a broad variety of unconventional assets, including precious metals, real estate, and even cryptocurrency. These are beyond the usual options available in a conventional IRA, though they have virtually identical traits outside of this, including the same contribution limits.
How to Store IRA Gold Properly
A self-directed IRA is held by a custodian, such as the ones we work with at Priority Gold. Custodians can be banks, trust companies, or other entities approved by the IRS. It is crucial that they are approved by the IRS in order to avoid penalties.
Custodians are who will be holding your assets and need to be approved by the IRS in order to do so. A good custodian will give you a wide variety of things to invest in, excellent customer service, and transparent fees. Priority Gold is here to help you find everything you need for your IRA, including a great custodian to work with.
Oddly enough, the gold you invest in for a precious metals IRA will likely never be seen by you. This is because it is held in an IRS-approved depository.
Improper Gold IRA Storage: What Happens
According to an article by the Wall Street Journal, a couple in Rhode Island had to learn the gold IRA custodian rules the hard way:
It’s an official law that owners of individual retirement accounts with assets invested in gold and silver coins can’t secure them in a safe at their home. A personal retirement account in the United States is a form of “individual retirement plan,” granted by many economic institutions that provide tax advantages for retirement savings.
Mr. McNulty and his wife Donna Dearly had put their money into individual retirement accounts. They had stored IRA gold inside their home. The Internal Revenue Service (IRS), an institution working under the United States federal government, is responsible for collecting taxes.
In its annual audit, the IRS caught out the couple. So the judge ordered in a recent Tax Court case that the verdict will cost taxes of nearly $270,000 on $730,000 of IRA assets, with the addition of penalties likely to exceed $50,000. The case was overheard in the Tax Court of Rhode Island.
The ruling rejects a plan that was heavily encouraged several years ago. It proclaimed the advantages of using IRA assets to buy gold and silver coins and then retain them at home or in a safe-deposit box.
The McNulty case is a good story showing how dangerous it can be to invest retirement-plan funds in alternative assets without proper advice.
Investing in a Gold IRA with Priority Gold
In order to prevent paying hefty fines and penalties like the McNulty family, make sure you work with a renowned, trustworthy company to help you reach your financial goals. If you are ready to invest in gold to protect your savings and secure your future, we can help. Priority Gold is one of the most trusted precious metals dealers in the United States with BBB A+ Rating, AAA Rating with Business Consumer Alliance, and 5 Stars Rating with TrustLink.
We specialize in providing precious metals investment services with Security, Liability, and Great Convenience for customers. Our team is committed to helping to streamline their precious metals purchases at a fair price, selecting the right precious metals portfolios, and meeting their important financial objectives. We offer Free Storage for qualifying Gold & Silver IRA accounts, a fast & easy gold buying process, and smooth IRA Transfer.
We have a proven and simple four-step process that makes opening a precious metals IRA easy, and we guarantee you the highest caliber customer service. Our IRA specialists will answer all of your questions, work with your current custodians to ensure a seamless transition, provide you with a free metal evaluation, and continually help you to review your portfolio.
Priority Gold guarantees the highest standards of customer service, which comes with honesty, professional conduct, and Ethical Code of Business.
For more information, visit us at prioritygold.com