Why Is A Gold IRA Better Than Personally Holding Gold?

Gold IRA Benefits May Be A Game Changer

Share Tweet Share

If you are looking to diversify your investments, then you may be considering an investment in gold. However, there are a number of ways that you can invest in precious metals. First, you can purchase physical gold coins and bars. You can also consider purchasing a gold ETF. However, one of the best ways to own the precious metal may be through a Gold IRA. If you are not exactly sure how a Gold IRA works, make sure to contact Allegiance Gold after reading this article, and one of our executives can educate you and more! Here’s a look at some of the major advantages that a Gold IRA offers. 

What is a Gold IRA? 

A gold IRA is a self-directed individual retirement account that specializes in the investment of physical gold. With a gold IRA, you can hold gold and gain the advantages that an IRA has to offer. To be eligible for tax advantages, the gold IRA account must be opened by an IRS-approved broker. 

The Benefits of Using a Gold IRA

One of the major reasons that you will want to consider using a gold IRA is that your contributions into the retirement account can be written off on your taxes. For instance, if you add $5,000 worth of physical gold each year to your gold IRA, then you will be able to write off that amount on your taxes. Over time, this could lead to a significant amount of tax savings. Compare that to purchasing gold and holding it outside of a gold IRA. If you purchase gold over a long period of time, then this could lead to tens of thousands of dollars of tax savings.

Also Provides Excellent Retirement Diversification 

When people think about diversifying their investments, they rarely think about their retirement funds. However, your retirement should be as well protected as your non-retirement funds. Therefore, if you have all of your retirement investments in stocks, then you will want to consider moving some of that wealth into gold. Historically, gold has been uncorrelated with stocks. That means that you can protect your wealth in the case of a prolonged bear market. 

How to Purchase Gold for a Gold IRA

If you are looking to open a Gold IRA account, then you will have to become familiar with what can be stored in the account. For more information on opening a gold IRA or purchasing physical gold, call Allegiance Gold at 844-790-9191. The IRS has an approved list of gold bullion that can be stored in a gold IRA. Also, the gold will have to be stored by an approved company in order to maintain compliance with the IRS. That means that you are going to pay annual fees to have your gold stored. However, when you consider the tax savings that you are getting, the fees may be worth it. 

Can You Store Your Gold at Home? 

Under the IRA code, gold is considered collectible and has to be stored by an approved third-party vault in order to be eligible for inclusion into a gold IRA account. If you would like to learn more about what is allowed in a gold IRA account, be sure to check out this page from the IRS.

How Much Can You Put into a Gold IRA?

According to current tax law, you can put up to $6,000 into a gold IRA. If you are age 50 or older, then you can contribute up to $7,000 per year into a gold IRA. 

How Do You Open a Gold IRA?

You can open a gold IRA by opening an account with an IRA-approved broker. In most cases, the broker can provide you with a recommended list of gold that is suitable for a gold IRA account. After you have purchased your gold bullion, the assets will be stored by an approved third-party vault. At the age of 59 ½, you will be able to withdraw your gold and sell it without a penalty. At the age of 70, you will be required to take out a certain percentage as a distribution. 

Getting Started with a Gold IRA 

If you want to make sure that your retirement is properly diversified, then you will want to open a gold IRA. Remember, that the faster that you open a gold IRA, the more years that you will be able to contribute to the fund. The best action you can take towards opening a gold IRA is by contacting Allegiance Gold. The executives at Allegiance Gold take the time to educate you on portfolio diversification and how important a gold IRA is to your retirement. Call 844-790-9191 for more information and on how you can receive your FREE Gold IRA Guide.