Gold IRA enables a person to hold gold in his Individual Retirement Account as a stable and secure form of investment. This holds more relevance in today’s date as the currency market is volatile and is often susceptible to influences that are beyond individual control. Stocks, shares and bonds too put up with such inconsistencies, but not gold. The value of gold has been stable for the last 200 years and its purchasing power has also remained constant against the steadily falling purchasing power of currencies all over the world. So gold investment is certainly the preferred choice for IRA investments.
Gold IRA – a new inclusion to IRA accounts
Gold IRA is an ellipsis for Individual Retirement Account which is actually a retirement plan account that accumulates investment for retirement in USA while providing certain tax advantages for the savings.
Gold IRA can include several kinds of investment options like stocks, bonds, shares, securities etc. At one time, only cash/cash counterparts could fund an IRA. Endeavoring to transfer some other kind of asset into an IRA was a kind of prohibited transaction which thwarted the fund from receiving favorable tax treatments.
In 1997, such restrictions got lifted with the Tax Payer Relief Act which allowed precious metals like silver, gold or platinum to be included into IRA accounts. And as a diversification measure, some IRA Account holders promptly transferred gold into their IRAs.
As the general market trends indicate, gold price swells up when stock prices take a nosedive. A balanced investment portfolio therefore benefits from Gold IRA, since this evens out the value of any portfolio when the stock market takes a dip.
Gold IRA – how to go about it?
>To include gold IRA account, enquire with your IRA trustee/custodian if you can push in gold to the existing account that you hold. Although most would allow it, some plans may not hold this capacity. In that case you would need to begin a fresh gold IRA account.
>Remember to select a program that is managed by a provider who has extensive experience in gold dealing. If your plan permits, you can choose to add gold to all kinds of IRAs, including the conventional ones.
>Submit all the required documents to your new IRA custodian to create a fresh gold IRA account. This would also include a charge (storage fee) since physical gold needs to be safeguarded here. As the IRS rules specify, the gold for IRA must be stockpiled at an official depository, which is at a redundant location from the IRA custodian location.
>To fund your IRA account for gold, you can transfer funds from your current gold IRA account to the latter. You can request your IRA agent to perform the purchase on behalf of you.
Gold IRA – know the gold that you put into your IRA account
Remember that the gold coins that are put into an IRA need to have 99.5% purity and be IRS approved too. Alternatively you can also choose from gold stock or bullion to be included into your gold IRA account.