Starting in 1998, your IRA can invest in certain platinum coins and in certain gold, silver, palladium, and platinum bars. As long as you have eligible income, you can contribute to a Roth IRA. If you want to invest in silver, you'll need a self-directed IRA. An independent custodian will oversee your assets, and a retirement account has the same tax advantages as traditional IRAs.
You'll need to consider whether you want to pay taxes now or in the future. Paying taxes in the future allows you to increase your monthly contribution and reduce your bill. Paying taxes now gives you fewer dollars to invest in, but your future capital gains are tax-free. The main advantages of investing in precious metals through an IRA are tax benefits.
By using an IRA to buy precious metals, the investor saves taxes now or in the future. The specific tax benefits depend on whether you choose a traditional IRA or a ROTH IRA. Financial professionals around the world agree that asset diversification is the key to success. A self-directed IRA can buy gold and silver as long as the assets purchased meet IRS requirements.
IRAs cannot invest in collectibles (including collectible coins). Precious metals add diversity to retirement portfolios. They protect themselves against market cycles and inflation. If you're considering a Roth gold IRA as part of your retirement plan, be sure to compare prices for your IRA company.
I have already warned silver investors about buying these test coins in a Seeking Alpha article The problem of buying gold-proof and silver-proof coins in your IRA. Examples include American Gold Eagle coins; Canadian Gold Maple Leaf coins; American Silver Eagle coins; American Platinum Eagle coins; and gold, silver, platinum and palladium bars (ingots) that meet applicable purity standards. Because the money has already been taxed, you can't deduct Roth IRA contributions on your tax returns as is the case with traditional IRAs. A Roth Gold IRA is a type of self-directed IRA that you can use to invest in various tangible assets, such as art, antiques, collectibles, and even real estate.
In addition to the post-tax rule, Roth Gold IRAs come with a few other guidelines that you'll also need to follow. Gold and other precious metals are just one of the many things you can buy with a Roth Gold IRA. ROTH IRAs allow investors to invest after-tax money in their IRA to invest it in the assets of their choice. Contact Monex to learn more about silver IRA investments and to learn how to open a silver IRA account.
With a gold and silver Roth IRA, your contributions are made after taxes, which means that you'll pay taxes on the money before you deposit it in your IRA account. However, there is no maximum dollar amount for transfers or reversals from an existing IRA account to a gold, silver or any other precious metals IRA account.