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Gold IRA_ Gold 401k_ Gold Retirement Account


									?Example Introduction
Individual retirement accounts, or IRAs, are a popular way for individuals to set aside
money for their eventual retirement. These accounts offer investors the opportunity to
defer or avoid taxation on income and capital gains, but are often subject to strict
penalties for early withdrawal. Precious metal IRAs allow individuals to store their
money in the form of bullion, which many consider a safe hedge against inflation or
other financial risk.
Opening a PM IRA
ExampleUnlike 401(k) plans, which can only be rolled over on separation from an
employer, IRAs are not linked to an employment situation and can be transferred at
any time. This means securities in an existing retirement account can be reassigned
and liquidated to fund a precious metals IRA. Starting a precious metals IRA usually
involves contacting a reputable custodian or trust company experienced in handling
such matters, as the bullion must be held by a third party to qualify as an IRA. This
means there will be custodial fees associated with storage and maintenance of the
account. Example
Once an account is opened with a trust company, the physical metal is shipped to its
vaults where it is held for the full term of the IRA. When a 401(k) plan is eligible for
rollover, the funds can also be transferred and used in a precious metals IRA. Upon
distribution of the precious metals IRA, most custodians will either ship the physical
bullion or send a check for the equivalent value, which is treated as taxable income
for that fiscal year. A penalty of 10 percent applies if withdrawal occurs prior to age
59 1/2.
Selecting Bullion Example
Prior to 1997, only Gold and Silver Eagles were permitted in precious metal IRAs.
These are coins of 1 oz. or less minted by the U.S. Examplegovernment. After the law
was changed, bars with a recognized assay mark in larger weights were permitted, and
this was especially helpful for investment in silver, which carries considerably less
value per ounce. It also opened precious metal IRAs to investment in popular foreign
bullion such as those minted by the governments of Canada and Australia, though
gold Krugerrands, being 22 karat, and other U.S. gold coins, still do not qualify. To be
eligible for inclusion in precious metals IRA, bullion must be 99.5 percent pure.
Another key change from 1997 was the inclusion of platinum, palladium and other
platinum group metals to the list of approved bullion. Private assayers, like Pamp
Suisse, Johnson Matthey and Englehard, also offer investment-grade bullion in gold,
silver and platinum, though some trustees will limit their precious metal IRA accounts
to legal tender coinage.

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