5 Ways a Gold IRA Makes Precious Metals Investing Easier

Investing isn’t always the easiest thing in the world. From the choice of assets to invest in, to the vehicle through which you invest, to the tax consequences of your investments, there are dozens of variables to consider. When you realize that the wrong choices could cost you by reducing gains or losing money, it’s no surprise that many investors are nervous about investing their money. Even when it comes to standard investment vehicles such as IRAs, which millions have invested in over the years, many investors are paralyzed by the choices they have.

Thankfully there are options available that can overcome many of those fears. Among them is a gold IRA, which allows investors to take advantage of the benefits of investing in gold while still enjoying the tax treatment of an IRA retirement account.

Gold’s stable long-term price growth has long made it the asset of choice when it comes to protecting and safeguarding wealth. Its recent price surge in reaction to the weakening US economy has spurred renewed interest in investing in gold.

For those who may just be learning about a gold IRA for the first time, the idea of investing in gold through an IRA may sound intriguing. Yet, because it’s so far outside the realm of anything they have experience with, they assume that it’s difficult–but it’s not.

Investing in a gold IRA is a relatively simple process that isn’t much different than investing in any other IRA. And having a gold IRA can actually be one of the most stress-free methods of investing in gold. Here are five ways that investing through a gold IRA can make precious metals investing easier for you.

1. Tax Benefits

The major benefit of a gold IRA is that it retains the same tax-advantaged status as any other tax-advantaged retirement account. If your gold IRA is a Traditional IRA, you can invest pre-tax dollars in physical gold coins or bars. Or if you prefer to start a Roth gold IRA, you can invest post-tax dollars in gold.

Using pre-tax dollars to invest in a gold IRA allows the use of both pre-existing retirement funds or payroll deductions to invest in a gold IRA. As with any other Traditional IRA, in most cases those payroll deductions are deducted from your taxable income. Your investments in a gold IRA are not taxed until you decide to take a distribution. Distributions can be taken penalty-free after age 59 ½, while required minimum distributions (RMDs) kick in at age 73.

With a Roth gold IRA, you can use post-tax dollars to invest in gold. As with any other Roth IRA, gains on your gold accrue tax-free, and you don’t owe taxes when you take a distribution at retirement. That makes a Roth gold IRA a useful choice for those who think they’ll end up in a higher tax bracket in retirement than they’re in right now.

2. Ability to Roll Over Funds

Because gold IRAs are tax-advantaged in the same way as any other IRA, investors are able to roll over or transfer funds from other tax-advantaged retirement accounts with ease, and normally without tax consequences. That allows investors to use pre-existing retirement account assets to invest in gold without having to worry about the usual annual limits on IRA contributions.

One of the most popular ways to do this is through a 401(k) rollover. If you have a 401(k) from a previous employer, or you have the ability to perform rollovers through your current 401(k) plan, you can roll over all or some of the assets in your 401(k) into a gold IRA. Because you’re transferring your assets from one tax-advantaged plan to another, that normally occurs without tax consequences.

You can also transfer assets from an existing IRA into a gold IRA. As with the 401(k) rollover, as long as the proper process is followed, that should occur without tax consequences.

If you have assets in a Roth 401(k) or a Roth IRA, you can transfer them to a Roth gold IRA. Or if you have assets in a 401(k) or Traditional IRA and want to do a Roth conversion, you can roll over or transfer those assets into a Roth gold IRA.

Regardless of what type of retirement account you have, whether it be a 401(k), 403(b), TSP, SIMPLE IRA, etc., there’s a gold IRA out there that will allow you to use your existing retirement assets to invest in gold. That way you can preserve your existing investment gains, safeguard your assets, and benefit from long-term gold price growth.

3. Authenticity of Metals

One of the things many gold investors, and particularly first-time gold investors, are wary of is the risk of buying counterfeit coins. With so many vendors out there and so many places to buy coins and bars, there’s always the fear that some or all of the gold you’re going to buy could be counterfeit. And if you’re putting up a significant portion of your retirement savings to buy gold, you want to be as sure as possible that the coins you’re getting are authentic.

With a gold IRA from Goldco, you don’t have to worry about getting counterfeit coins. Thanks to our established relationships with mints around the world, we get our IRA-approved gold coins directly from mints. There are no questions about chains of custody, authenticity, or metal content. When you invest in a gold IRA through Goldco, you can rest assured that you’re getting the gold you want.

4. Secure Storage

Another aspect of precious metals investing that worries many investors is keeping their assets safe from theft. Investing in gold outside of a gold IRA, such as buying coins and storing them at home, is inherently risky. Even if you own a safe, you have to worry about being robbed, costs for insurance, security when you’re not home, and more.

A gold IRA takes care of all those worries for you, as your gold will be managed by a gold IRA custodian and stored at a bullion depository. Gold IRA custodians and bullion depositories have long track records of keeping precious metals assets safe, so that you don’t have to worry about your precious metals investments falling into the wrong hands. And by dealing with all the back-end issues like insurance and safekeeping, you don’t have to stress out about all the small details of keeping your investments secure.

5. Ability to Take Distributions in Physical Gold

Even if you’re worried about the security of your physical gold coins and bars, sometimes you just feel better having some gold on hand at home. With a gold IRA, when you decide to take a distribution, you can take it either in cash or gold. That way, if you want to have just a little bit of gold on hand at home, you can do that.

That’s a unique feature of gold IRAs that appeals to many investors. If you’ve ever held a gold coin in your hand, you’ll understand the appeal of investing in and holding tangible assets like gold.

Take Advantage of the Gold Bull Market

With the ease of investing in a gold IRA, there’s no reason not to invest in gold. With recent price movement, gold has broken through to set new all-time high prices. But just because the price is rising doesn’t mean it’s not time to buy – far from it. It’s never too late to buy gold.

Gold right now is breaking out in a way that we haven’t seen in a while, but all the signs indicate the return of a multi-year bull market. With the economy contracting, the Federal Reserve potentially returning to rate cuts, and recession looking increasingly likely, all the pieces are in place for gold to continue gaining for a long time to come.

So, what are you waiting for? Contact Goldco today to find out how you can protect your retirement savings with a gold IRA.