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  • Best Gold IRA Options
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The High Purity Standards of IRA Approved Precious Metals

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When it comes to a Precious Metals IRA, you cannot just invest into any type of coin or collectible. The Internal Revenue Service has laid out some strict rules when it comes to what type of metals is permitted. In fact, many popular bullion coins and bars are not eligible to be IRA approved precious metals simply because they do not meet the purity requirements of the IRS. The purity grade needs to be 0.995 or higher for gold, 0.999 or higher for silver, 0.9995 or higher for platinum and 0.9995 or higher for palladium.

What is an IRA Approved Precious Metals Account?

An IRA is an individual retirement account. There are different types of IRA accounts available to people based on their goals and objectives. Some people may invest in an IRA account on a tax-deferred basis while others may invest in a Roth IRA on an after-tax basis. What type of IRA one should use depends on their specific circumstances and goals. This is an issue that is best discussed with one’s CPA or tax advisor.

In addition to the IRA type, there are also differences in what types of investments the IRA can hold. When the majority of people think of an IRA account, they likely think of an account that simply holds stocks, mutual funds, bonds and the like. It seems that many people out there are not aware of what they can do with a self-directed IRA. A self-directed IRA gives an investor the freedom to decide what to invest in. This is in contrast to most standard IRA accounts in which the investment types are limited. Many people, for example, are not aware that a self-directed IRA account gives them the ability to invest in alternative asset classes such as precious metals, futures, limited partnerships, commercial paper or real-estate.

How is a Precious Metals IRA Setup?

Setting up a precious metals IRA is a relatively simple process but there are some necessary steps involved. Here we will outline some of the necessary steps as a guide.

Are You Setting up a New IRA Account or Transferring an Existing IRA or Other Retirement Account?

This is one of the first issues to take into account. An investor may look to start a new IRA account if he or she does not have one already. An investor may also decide to “rollover” an existing IRA account, 401k or other retirement account. Obviously, an investor will need to discuss these matters with their CPA or tax adviser. Certain types of accounts can be rolled over while other types cannot. An investor must determine his or her eligibility prior to considering a rollover.

Choose the IRA Account Custodian

  • Self-directed IRA accounts are held by what is called an IRA custodian or trust company. These companies act as a fiduciary on behalf of the account. Some of their responsibilities include account setup, producing account statements and accepting allowed contributions. There are many different IRA custodians to choose from, and one can easily compare these companies from the comfort of their own home or office. Different companies charge differing amounts for their services and may have different fee structures. Fees are certainly one thing that a potential investor should consider when looking to establish a self-directed IRA account with a custodian. Often times, precious metals dealers will have custodians that they do business with or recommend. One can, however, use the custodian of their choice when setting up a self-directed IRA account.

Choose a Precious Metals Dealer

  • When one establishes a self-directed IRA account, he or she can still buy precious metals from the dealer of their choice. Investors can shop bullion dealers to compare prices and products.

Decide What Bullion Products to Buy

  • There are only certain bullion products that are eligible to be held in an IRA account. Some of these products include gold and silver American Eagles (including proof sets), Philharmonics and Canadian Maple Leafs. In addition, one can buy gold Australian Kangaroos, gold American Buffaloes, silver Australian Kookaburras and Mexican Libertad coins. In addition, various gold rounds and bars of .995 percent minimum fineness may be eligible as well as various silver rounds and bars of .999 minimum fineness. Finally, certain platinum and palladium products are also eligible. One can choose any of the IRA eligible products they like.

Decide on a Depository

  • Precious metals held in an IRA account cannot be delivered to the account holder. The metals must be stored in an approved depository, such as the Delaware depository. IRA custodians may recommend an approved depository, but investors do have the ability to choose where their metals are stored from approved depositories.

Make the Purchase

  • When all of the preciously mentioned pieces are in place, then an investor should make the actual precious metals purchase. The IRA custodian will handle the payment and the dealer will ship the metals to the chosen depository. Once an investor’s account is established and their metals have been purchased, the custodian will provide them with periodic account statements detailing their holdings and the bid or wholesale value of those holdings.
  • A precious metals IRA owner may liquidate his or her own entire portfolio at any time. A precious metals IRA account also gives the account holder the option of taking required minimum distributions in the form of bullion. Setting up a precious metals IRA account has never been easier. The process is streamlined and an investor can have precious metals within their self-directed IRA account in a matter of days or weeks.

How to Buy Precious Metals for Your IRA – Steps, Rules & Storage Options

Best IRA options have simplified the process of setting up a gold and silver individual retirement account (IRA) into three easy steps (Get these precious metals IRA steps in a printable image guide):

1. Select Your IRA Plan

Best IRA options offers two different options for storing your precious metals.

Option A: Local Storage Plan

  • Creating a local storage plan allows the precious metals to be sent directly to the manager of the IRA, so you (the IRA manager) may choose where to store the metals.

Option B: National Storage Plan

  • The second option is storing the precious metals in a national depository. Best IRA options and Coin works with the Delaware Depository Service Company (DDSC) and will help you establish your account with them. However, a national storage plan means the precious metals will be sent directly to the DDSC facility rather than being shipped to a local IRA manager.

2. Fund Your IRA

To fund your IRA you must make contributions, transfers and/or rollovers from existing Retirement Plans. A minimum investment of $5,000 is mandatory to start your individual retirement account (IRA) and invest in precious metals through Best IRA options and Coin.

Select Precious Metals

  • Best IRA options and Coin will facilitate your purchase of precious metals and be your designated precious metals dealer. Our Managing Brokers will educate you on the proper investment products and provide necessary advice before choosing IRA approved precious metals.

Invest in Precious Metals

  • When buying precious metals through an IRA, there are restrictions on what metals are allowed in the IRA. Gold, silver, platinum and palladium are all the options, but a minimum requirement on fineness of the metal is stipulated. Best IRA options and Coin will provide imperative advice on which products are eligible for investment.

3. Purchase and Make Payment for Possession of Physical Precious Metals

To purchase the precious metals that you and your Best IRA options and Coin advisor have chosen to best meet your IRA needs, the trust company will fund the purchase one of two ways.

The Local Storage Option

  • The Directed Trust Company will fund you (the IRA manager) and you will fund Best IRA options and Coin.

The National Storage Plan

  • The Directed Trust Company will fund Best IRA options and Coin once an invoice has been submitted to the trust company.
  • Precious Metals are now available for pick up and/or will be shipped from Best IRA options and Coin (if local storage plan was chosen), or will be shipped directly to the DDSC national storage facility (if national storage plan was chosen).

Regal Assets is the best certified firm to purchase gold IRA’s. Not only has it received the highest remarks from the most authoritative business evaluation companies such as the Better Business Bureau, TrustLink, and much more, it has never received a single complaint from any of their customer testimonials. When you sign up, you receive a PDF kit that lists the scams associated with precious metals investing and ways to avoid it. They also send out a newsletter containing valuable exclusive tips and information on precious metals investing.

 

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    Categories: Best Gold IRA Options, Best Silver, Platinum and Palladium IRA OptionsBy David YeoAugust 23, 2018Leave a comment
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      IRA Approved Precious Metals

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      Investing in precious metals is a worthwhile goal for everyone looking to live comfortably in retirement. New investors make the fatal mistake of thinking they can buy every type of precious metal for their IRA account. But the truth is quite different. Only certain types of gold, silver, platinum, or palladium are acceptable in a precious metals IRA.

      How can investors and future retirees tell the difference between acceptable and unacceptable precious metals? First, they must learn the rules regarding IRA approved gold and other investments. 

      Once they learn the truth, everything else will quickly fall into place. And before long, you’ll have no trouble buying the best gold, silver, platinum, and palladium investments for your self-directed IRA.

      Precious Metals IRA Rules & Regulations from the IRS

      At one point not that long ago, precious metals IRAs had very strict limits. In fact, investors were only allowed to own American Eagle silver and gold coins. But things have changed since then. And now there are many more IRA approved precious metals for investors to choose from.

      What happened? Well, a tax reduction act called the Taxpayer Relief Act of 1997 made a big difference for investors. In this act, the IRS expanded the allowable precious metals holdings in a gold IRA. 

      They also expanded the size options to 1/10, 1/4, 1/2, and 1-ounce sizes. This granted investors permission to add many different US gold and silver coins, plus many foreign coins to their portfolio.

      But there are certain qualifications that must be met to achieve precious metals IRA approval. Specifically, approval will only be met if the coins, rounds, and bars meet certain minimum fineness requirements. Those requirements include:

      • Mandatory purity levels – gold must maintain 99.5% purity, silver must maintain 99.9% purity, and platinum and palladium must maintain 99.95% purity
      • Coins, bars, and rounds – each of these investments are only allowed if they are produced by an accredited or certified national government mint, COMEX, LPPM, NYSE/Liffe, NYMEX, LME, ISO 9000, LBMA, or TOCOM. And the investments must meet the minimum fineness requirement.
      • Proof coins – each coin must have a certificate of authenticity, it must remain in excellent condition and it must be enclosed in the original mint packaging.
      • Small bullion bars – these bars must be manufactured based on the exact specifications of weight, excluding 400-ounce gold, 1000-ounce silver, 100-ounce palladium, 100-ounce gold, and 50-ounce platinum bars.
      • Non-proof bullion coins – each coin must not have any damage on it whatsoever and it must maintain a brilliant uncirculated condition.

      Gold Coins and Bars with IRA Approval

      • Gold American Eagle coin
      • Gold Canadian Maple Leaf coin
      • Gold Austrian Philharmonic coin
      • Gold Chinese Panda coin
      • Gold Mexican Libertad coin
      • Gold British Britannia coin
      • Gold Australian Kangaroo/Nugget coin
      • Gold American Buffalo coin
      • 1-ounce Credit Suisse gold bar
      • 1-ounce Perth Mint gold bar
      • 1 g Valcambi gold bar
      • 1 g PAMP Suisse gold bar

      Silver Coins, Rounds and Bars with IRA Approval

      • Silver American Eagle coin
      • Silver Burnished American Eagle coin
      • Silver Australian Kookaburra coin
      • Silver Austrian Philharmonic coin
      • Silver Chinese Panda coin
      • Silver Australian Koala coin
      • Silver Armenia Noah’s Ark coin
      • 1-ounce silver round
      • 1-ounce PAMP Suisse silver bar
      • 10-ounce silver round 10 ounce
      • 10-ounce silver bar Morgan Design

      Platinum Coins and Bars with IRA Approval (With Company Approval)

      • Platinum American Eagle coin
      • Platinum American Eagle Proof coin
      • Platinum Burnished American Eagle coin
      • Platinum Australian Platypus coin
      • Platinum Australian Koala coin
      • Platinum Canadian Maple Leaf coin
      • 1-ounce platinum Englehard bar
      • 10-ounce platinum PAMP Suisse bar
      • 1-ounce platinum Credit Suisse bar
      • 1-ounce platinum Valcambi bar

      Palladium Coins and Bars with IRA Approval (With Company Approval)

      • Palladium Canadian Maple Leaf coin
      • Palladium Russian Ballerina coin 
      • 1-ounce Credit Suisse Palladium bar
      • 1-ounce PAMP Suisse Palladium bar

      Some companies do not offer platinum or palladium investments through their service. Keep this in mind in case you intend to purchase platinum and palladium investments for your precious metals IRA.

      Beware of Collectible Coins: Collector Coins, Numismatic Coins, and Semi-Numismatic Coins

      Whether you know it or not, investors aren’t allowed to hold rare or collectible coins in their precious metals IRAaccount. This may seem unfair, but rarity has nothing to do with the guidelines set forth by the IRS.

      Although, there is one major exception to the rule. One type of numismatic coin is allowed in a precious metals IRA. The type of coin is called a US Proof Coin. Certain numismatic US Proof Coins made of gold and silver are permissible in a precious metals IRA account. 

      But I would recommend steering clear of them because numismatic coins are more expensive than typical precious metals coins. The major difference is that a proof coin looks nicer than your typical gold or silver coin. But that isn’t reason enough to pay a premium or serious markup in my opinion.

      Although, if you buy US Proof Coins for your gold IRA, it’s allowed because it’s considered IRA approved precious metals. The silver and gold content are the same amount and purity level of other coins. Again, the only major difference is the attractiveness of the coin’s overall appearance.

      More often than not, numismatic and semi-numismatic coins do not meet the purity requirements that the IRS demands. And because of this fact, these coins aren’t considered a reliable or welcome investment in a gold IRA account.

      Ineligible Precious Metals IRA Bullion Coins That Are Really Popular

      Just because it isn’t allowed in a gold IRA, it doesn’t mean that a coin isn’t popular. Some coins just fail to meet the requirements set out by the IRS. Even so, these popular coins will never receive IRA approval unless they change their purity levels in the future.

      Some extremely popular coins that are not considered IRA approved precious metals include:

      • Russia’s George the Victorious coin
      • British Britannia coin (pre-2013)
      • United Kingdom Sovereign coin
      • Israel Tower of David coin
      • USSR Chevronet coin
      • Chilean 100 Peso
      • South African Krugerrand coin
      • South African Krugerrand coin
      • Mexican 50 Peso
      • Italian Lira coin
      • Swiss 20 Franc
      • Somalia Elephant coin
      • Switzerland Vreneli coin
      • Austrian Corona
      • French 20 Franc
      • U.S. Liberty coin
      • Dutch 10 Guilder
      • U.S. Buffalo Proof coin
      • French Napoleon coin
      • Mexican Gold Peso coin

      Precious Metals IRA FAQ

      If you’re new to investing in precious metals, you undoubtedly have many questions that need answers. You can continue floundering and stumbling your way through the learning process. But I felt it best to provide a handy FAQ to my readers. Hopefully you’ll find invaluable answers to your most pressing questions about this topic.

      Why Do I Need to Store My Precious Metals in a Secured Vault?

      It’s a rule that the IRS implemented right away when they first allowed precious metals in a self-directed IRA account. It isn’t permitted for IRA account holders to store their metals at home. This physical asset must remain in a secure, IRS approved depository. And it must be held and managed by a qualified custodian.

      The good thing is that investors have an opportunity to choose segregated or non-segregated storage when they pick a depository. Keeping a segregated storage vault means your precious metals are stored safely in a vault all your own.

      Does the IRS Endorse Specific Storehouses and Depositories?

      Right now, the IRS currently endorses 6 different storehouses and depositories for precious metals. The names of each of these storage facilities and other pertinent and specific information are as follows:

      • Brinks Global Services – this organization is one of the top storage facilities throughout the world and they are a highly respected company. They have authorized depositories in London and New York City. They provide an online portal for inventory management. Plus, they are fully liable for all of the valuables including precious metals stored at their facilities.
      • Delaware Depository Service Company – this organization has received IRS approval and their licenses from the CME Group as well the COMEX and NYMEX markets. They have $1 billion all risk insurance coverage, shipments are covered up to $100,000, and they provide their clients with big tax advantages.
      • J.P. Morgan Global Metals – they received their depository approval in 2011. They have state-of-the-art vaults and facilities in Singapore, London, and New York. And clients can store rhodium, platinum, gold, silver, and palladium in a J.P. Morgan storage facility.
      • CNT Depository – based out of Bridgewater, Massachusetts, this COMEX-approved depository has been in business for 35 years and their annual revenue is $8 billion per year. They are insured by Lloyds of London for 100% of the assets stored in their facility.
      • ScotiaMocatta Depository – this well-respected organization has roots in the financial industry dating back to 1671. They are considered Canada’s Gold Bank and they officially got into the precious metals storage business in 1997. It is a COMEX approved facility with an excellent reputation in the investment world.
      • HSBC Bank – investors may not realize it, but HSBC Bank has been storing precious metals for accountholders since 2003. And even more impressive is the fact that they are the largest bullion clearer throughout the entire world. And they’re the number one silver and gold dealer since 2003. You can’t go wrong storing precious metals with HSBC.

      Bottom Line

      Investing in IRA approved precious metals is a great way to bolster your retirement and grow your future wealth. To get started, I highly recommend reading my review of the major players in the gold IRA investing space. Use this valuable information to choose the right gold IRA company to begin investing with today.

      By David YeoJanuary 27, 2018
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