Although the Internal Revenue Service first authorized the creation of Gold IRAs in 1997 by approving the Taxpayer Relief Act many Americans are still unaware that they can use funds from their retirement accounts to purchase precious metals. An even larger number of people have heard about the Gold IRA option but have not exercised that option due to a lack of knowledge and insecurity about whether such a move would be worthwhile. The mission of the Certified Gold Exchange is to educate investors about their options regarding gold, so we have compiled a list of the most common questions regarding Gold IRA rollovers with the goal of helping U.S. investors to see the benefits of a Gold IRA.
What are the tax implications for rolling over to a Gold IRA?
Individuals who receive their IRA funds in the form of a check or bank wire have 60 days to place those funds into a qualified retirement account before penalties and/or taxes come into play. The majority of our new IRA clients direct their current custodian to place funds into a cash account and to prepare for a custodian-to-custodian transfer. This way funds never touch the household investor’s hands or bank account and the rollover can be completed in just a couple of weeks.
Do gold prices always move in the opposite direction of dollar-backed paper investments?
Gold is highly prized as a hedge, meaning that gold gains value when the dollar loses value. This is the case the majority of the time, but government intervention into US stock and bond markets, as well as gold buying frenzies and large-scale gold liquidations, can sometimes cause gold to rise with the dollar, and vice versa. As a general rule, however, gold and other commodities that are priced in USD gain value when the dollar loses value, because it takes more dollars to purchase the same amount of that commodity.
Can I take delivery of the gold I buy with my IRA funds?
Investors who have reached the age of mandatory withdraws may take delivery of the gold, silver and/or platinum stored within their IRA custodian’s vault without penalty. IRA owners who have not yet reached the age of mandatory withdraws may request delivery of their metals but the IRS will assess a penalty for such a move. It is important to consult a CPA or other qualified tax adviser in either circumstance, because Uncle Sam will eventually want his cut of your profits, as is the case with other investment products.
How do I sell the gold from within my IRA?
Selling your gold back to Certified Gold Exchange is very easy. Whether your Gold IRA is with Equity Institutional or Self-Directed IRA Services (SDIRA), all you have to do is call our Retirement Hotline toll-free at 1-800-300-0715 and tell your advisor that you want to sell your gold without paying a commission. Your advisor will inform you of the current buyback price for your metals, contact your custodian on your behalf and get the paperwork started. You simply need to sign and fax the invoice we send to you and funds will be placed, in cash, into your IRA. From that point you can move those funds into stocks, bonds, money markets or any other investment that you wish.
The benefits of a Gold IRA are numerous. The wide range of gold products available, the option of taking delivery of your metals and the rapid speed with which you can move back into cash are all reasons that dozens of clients per day ask the Certified Gold Exchange for help in moving away from paper and into a Gold IRA. For custodian options, pricing and an obligation-free analysis of your portfolio call us today at 1-800-300-0715 or select your free mail-out reports below.
To learn more about our policies on this matter, please call
1-800-300-0715 Ext. 303. Thank you.