Since 1997, it has been possible for people to add IRS-eligible silver, gold, palladium and platinum bullion bars and coins to an IRA savings mix. But, not everyone is aware of how this can be done. Knowing it can be a huge benefit because it is a way of protecting your retirement with precious metals.
Do you want to know how it can be done? Just follow the steps on how to start a precious metals IRA outlined below:
Step 1: Decide your future financial goals
When you outline your financial goals for retirement, it seems like you are planning an amazing vacation. You can only plan for the future when you know exactly where you stand today, where you want to go, how you will get there and what will be the cost. While your dreams and goals for retirement are probably going to change with time, they will never be free. This is an excellent time for you to consult your family and get in touch with a trained professional to get some guidance. They will not only discuss your current retirement status, but also help you in exploring your retirement needs.
Step 2: Start from scratch or choose between transfer or rollover
Once you have a plan, you can look at the different IRA options. You can start from scratch with a new account or consider a rollover or transfer. In a transfer, all your retirement funds are moved directly from one custodian to another and it is not taxable because the assets are never distributed. As for a rollover, it means moving the retirement funds from your existing retirement plans like a 401(k) into a new IRA, mostly one that offers more benefits and flexibility. Rollovers are distributed to you and not transferred to another custodian. You can deposit them in another IRA within 60 days or they become taxable. Also, remember that not all IRA providers allow their clients to keep precious metals so it is essential to check beforehand. You can also open a Self-Directed IRA if you want to start fresh.
Step 3: Select your custodian
When you have chosen what you want to do, it is time to look at custodians. When you want to hold precious metals such as physical silver or gold in a Self-Directed IRA, you are required by the IRS to open an account with an approved custodian and get them to buy the precious metals on your behalf.
Step 4: Secure the precious metals
After your account setup is complete, you should not think about physically securing your precious metals. The metals will then be held at an IRS-approved depository of your choice because they don’t allow you to keep the precious metals while they are in the IRA. A depository is a third-party storage facility, which is secure and specializes in protecting the precious metals. You can hold your assets at the depository and see them physically when you want, but you cannot take them home with you because they are part of the IRA.