Silver IRAs are Self-directed Accounts
If you wish to direct silver into your IRA account, then you need to establish a self-directed IRA which holds precious metals. These accounts also give you the latitude to add such assets as securities, real estate, trust deeds, and outside loans that you’ve made.
Reducing Investment Risk
Like a traditional IRA, a self-directed IRA follows the same tax regulations. Usually, a traditional IRA is made up of paper-backed assets, such as stocks, bonds, or mutual funds. Therefore, they limit you as far as your investment choices. Plus, the investment selections are managed by a broker or investor. Because of the volatility of stock-market investments, many people are choosing to open up self-directed bullion accounts.
Obtaining Transaction Assistance
Therefore, a silver IRA account must also be a self-directed IRA. By using this type of account, you can invest in the metal as well as other financial vehicles and commodities. The investments that are chosen are tailored to the holder of the account, provided those investment meet with the tax code requirements. In order to invest in a silver IRA then, you need to contact an IRA company who handles these kinds of plans. The firm will act as your custodian and will also manage the account.
Once you find a dependable company, you’ll need to fill out their application online or download and print out the paperwork. Submit the documentation along with a photo ID and a transfer request for the funding. As soon as the process is completed, the custodian can buy the silver you want to add to the IRA. You can either choose silver bullion coins or bullion in the form of ingots or bars. As long as the silver is approved by the IRS, it can be invested in your IRA. Silver must be 99.9% pure to make the grade.
Obtain a Depository to Store the Silver
You will need to secure a depository, also approved by the IRS, to store the metal. Holders of IRA accounts can’t receive the silver themselves. Otherwise, the transaction will be considered to be a distribution, which can be legally taxed and penalized. Therefore, your custodian will serve as your representative in making purchases and sales, and securing the metal for your account.
The American Eagle – An Excellent Choice for a Silver IRA
One of the preferred silver coins that is approved by the IRS for a silver IRA is the American Eagle. Therefore, you can add this coin to your portfolio without hesitation. However, again, you have to rely on the custodian you choose to make the transaction for you. You can’t add any silver to your account that you’ve previously acquired yourself.
IRA silver accounts allow you to fund the account up to 59 ½ years of age at which time you can make withdrawals, if you so choose. Traditional IRA accounts require that holders take distribution legally upon their 70 ½ birthday. Roth holders can continue to contribute to their accounts past that time if they choose to take distribution later. While traditional IRAs tax distributions, Roth IRAs tax the contributions. Therefore, you can enjoy tax-deferred savings either now or later, depending on the kind of account you prefer to own.