Will Rogers famously said, "The only difference between death and taxes is that death doesn't get...
If your personal finances are feeling the sting of inflation, or your portfolio is feeling the burn from assets deflating across the board, we have good news...
You can include precious metals like gold, silver, platinum and palladium in an Individual Retirement Account (IRA)!
Did you know that was an option for self-directed IRAs? We have been assisting clients in making it a reality since the IRS code first allowed it over 30 years ago.
Individual and corporate tax returns must be filed for the 2023 tax year by April 15, 2023. You MUST make your 2023 contribution by that date, but you can also make your 2024 contribution at the same time, if you wish.
For each year, the total annual contributions to your Traditional and Roth IRAs combined cannot exceed: $6,500 if you are under age 50, or $7,500 for those ages 50 or older. Traditional IRA contributions are not limited by annual income, and are tax deductible for the year of the contribution.
This way, you can roll forward some of your contribution room, even over multiple years. This is particularly useful for those of you expecting income increases in the next year or so.
Roth IRAs
Roth IRA contributions are after tax dollars. Consider also that adding precious metals to a Roth IRA will carry additional benefits since you won’t have to pay taxes on the gains. However, there are limits and eligibility rules based on your modified adjusted gross income, which also vary depending on tax-filing status as follows:
Don't Forget
The Traditional IRA is tax deferred, not tax exempt. After you turn 72 years of age, you are forced to take distributions. At that point, funds in your traditional IRA must begin to be withdrawn, and ordinary income tax must be paid on the withdrawal.
What About RMD Withdrawal?
Required Minimum Distributions (RMDs) are minimum amounts that IRA and retirement plan account owners generally must withdraw annually starting with the year they reach age 72 (73, if you turned 72 after Dec. 31, 2022). However, you can delay taking the first RMD until April 1 of the following year. If you reach age 72 in 2022, you had to take your first RMD by April 1, and the second RMD will be due by Dec. 31, 2023. And December will be here before you know it!
As you get older, the percentage you are forced to take out increases and you will be forced to take out more money at unknown future tax rates.
Your ROTH contribution, so long as it is in your qualified account for 5 years or more, is distributed tax-free… including the growth. There is no RMD requirement. This is a good deal, if you can afford to pay taxes on current qualified holdings and convert to a ROTH, or make contributions without taking a deduction.
Alternative Assets in Your IRA
The Internal Revenue Code allows IRAs to own certain gold, silver, platinum and palladium bullion (coins and bars) so long as they meet the London Bullion Market Association (LBMA) minimum standards of fineness. In general, precious metal bullion and coins that are 99.9% pure or better are eligible for IRA investment, but we can help guide you when it comes time to make your purchase.
Precious metals are perfect for an IRA because they are for long term investing and so is your retirement plan.
But, you must have a self-directed account that follows carefully controlled IRS rules and restrictions. Specifically, your precious metals cannot be held by you directly; they must be held through an IRA administrator in an approved depository.
Another great IRA alternative is the Perth Mint Certificate which can be placed in your existing self-directed IRA if you have one. ASI has been working with several trustees/administrators for decades in this regard. Your gold, silver or platinum is held offshore in Perth, Western Australia and is guaranteed for safety by the Government of Western Australia and is fully insured at full market value at all times… at their expense.
Give us a call at 1-800-831-0007 or email us to discuss your precious metals IRA options.
P.S. The time is running out to take your RMD from your precious metals IRA before the end of 2023, but we can help! Give us a call. You must start the process immediately to ensure it will be complete by year-end.
*Asset Strategies International is neither a financial advisor nor a tax advisor. Consult your CPA or Tax Attorney today before making any decision.
