Can I Invest in Silver with an IRA?
Yes, you can invest in silver in an IRA. an IRA is a broad account type allowing you to hold any number of investable assets, including precious metals such as silver and gold. Usually, to invest in physical silver (or other metals) you will need to open an IRA with someone who specializes in this investment type such as Gramercy Gold. Some people refer to an IRA that holds physical silver as a “silver IRA”, but technically any IRA can hold it.
Self-directed individual retirement accounts give investors a fantastic deal of flexibility. The only two kinds of investments prohibited by Interior Earnings Service laws are lifetime insurance plan and collectibles. Precious metals of any kind are allowable to hold in an IRA. Not only can investors hold precious metal funds, but they also can invest in the physical metals. This means you can purchase physical silver and various precious metals that has a self-directed IRA.
One point we should address is that there are some restrictions on the types of physical silver coins you can hold in your IRA. The prohibition on collectibles includes collectible coins. The IRS only lets silver coins and bars whose price is completely dependent on the metal they contain . Basically, you can’t invest in silver coins worth more than the silver if they were melted down. Also, you must abide by IRS restrictions for acquiring and storing physical silver, which we at Gramercy Gold special in helping you accomplish.
So, if you are wondering about ways to further secure your financial future, you may be wondering if investing in silver with your IRA is a wise idea. It turns out that it actually is a very smart move because it could offer you greater financial security than other investments.
Want to learn how to invest in silver with your IRA? Here is an easy to follow guide that will help you make your investment in silver with your IRA a success, and allow you to enjoy a greater, more secure financial future.
Step 1 To Investing Silver in an IRA
Open a self-directed IRA if you don’t have one. We can open one for you at Gramercy Gold. A lot of brokers providing self-directed IRAs impose number of limitations, for instance they may limit you to just shares that are publicly traded and bonds, and some even may restrict you to only investing in CDs. Keep in mind if you don’t open one with a broker who specifically specializes in physical metals like gold, silver, and platinum like Gramercy Gold does you may not be able to invest in this through another brokerage.
More likely, you already have a retirement account and you are looking to invest it in silver in a way that is not currently offered by your brokerage. If you already have a retirement account we can easily open an IRA for you capable of investing in physical metal, and you can roll part or all of your funds in when you want.
No matter who you open the account with, bear in mind that using a self-directed IRA you – not the account custodian – are accountable for choosing investments and complying with IRS policies. Most brokerages today will help you to navigate the basic rules of a retirement account just like we do at Gramercy.
Step 2 For Physical Silver Storage
If you are not investing with Gramercy, you will need to pick out an authorized depository for storing your silver. IRS rules state that you cannot acquire actual physical possession of important metals you purchase with an IRA, and neither can your account custodian.
Here we specialize in both investing and storing precious metals so the process is seamless for you. Other providers do not make it so easy.
At Gramercy Gold, we have an arrangement with a depository. If you ever want to actually obtain possession of your silver (or other metal) in your IRA, you can but keep in mind that it is considered a withdrawal for tax purposes from your IRA. No matter what the case, we believe that if you buy physical metals you should always have the ability to access them.
Step 3- Fund your Account
Fund your IRA through contributions or by transferring an existing retirement plan. For contributions, you can deposit nearly $5,500 per yr. Per IRS rules, when you are 50 years old you are allowed to contribute an additional $1,000 a year for a total of $6,500 annually. This is known as a “catch-up provision” and was created so that people nearing retirement could sock some extra money away.
Most people will roll an existing retirement account over when they want to invest in Silver with their IRA. This is the bulk of account openings that we see at Gramercy. People can roll any tax deferred retirement account including an existing IRA, a 401(k), a SEP IRA, a Simple IRA, a KEOGH plan, a 403(c) or other retirement accounts.
Step 4- Choose your Coins and Bars
Choose the type of silver bullion you want to purchase in your IRA account. Because it is self directed, you have the option between different denominations of silver. The IRS makes it legal to invest in American Eagle, Austrian Philharmonic and Canadian Maple Leaf silver coins, for instance. You may also use an IRA to get silver bars that fulfill IRS standards for purity. Again we specialize in helping you navigate the rules so you stay in compliance. The rules are fairly straightforward in most cases but you definitely don’t want to be on the wrong side of them.
Step 5- Direct the Purchase at Spot Rates
No matter who you invest with, instruct your IRA trustee/custodian to purchase the silver. Never purchase the silver yourself or it won’t be permitted to be a part of your IRA. It’s essential to start with deposit dollars and allow the account trustee to carry out the transaction. They will purchase the silver at their specified rates using your dollars and fund the IRA with the silver. For the best prices closest to exact spot rates, make sure you are using a reputable dealer like us at Gramercy Gold.
By following this easy guide, you will be able to successfully invest in silver with your IRA. If you have any questions, don’t hesitate to contact us whenever you need. Together, we can figure out the best way to invest in silver with your IRA and grow your wealth and your financial future.
Investing in silver with your IRA could be the best investment you could ever make!