Gold IRA Rules
Custodial maintenance The custodian’s role in a precious metals IRA is paramount, the IRA investors themselves are not allowed to have possession of the coins or precious metal assets. Again investors not even allowed to purchase gold to turn over to their IRA custodians. Investor possession of such will be considered distribution under IRS regulations and can be considered as fully taxable. It is the IRA custodian who has to purchase gold to be placed into the gold IRA account and his or her responsibility to store it in a third-party depository. It is up to you as the investors to order the custodian to buy more gold or sell more gold as you see fit. The items must be kept in an IRS-approved depository specifically for precious metals. This depository should have an annual storage fee, paid from your IRA account, there it will be held secure until you cash it in or trade it for another type of investment.
Contribution limits to the IRA Funding the IRA must be made with cash. This can come in an annual contribution of up to $5,000 annually. This can increases to $6,000 when you turn 50. You can opt to fund your IRA by a rollover or transfer from another qualified plan, but be sure to consult with your IRA custodian about this because the IRS has strict procedures regarding transfer procedures. As soon as you decide to do a rollover, the contributions to your IRA account will be transferred to you. If you don’t transfer these assets to your new IRA account, the IRS is going to regard this transfer as a withdrawal. This rollover should be done within 60 days, otherwise you will have to pay tax as the IRS has regarded this transfer as a withdrawal and therefore they will tax you like you received an income. A rollover can be done once a year, but transfers are free of any such rules.
IRA Exceptions Like in any law there are exceptions, where the “no touching of IRA” assets before you are 59 and a half is void when:
The IRA owner is disabled for whatever reason. If an IRA beneficiary starts to withdraw money after the original owner of the IRA dies.
If the IRA owner has to be hospitalized and has neither the money nor the insurance to cover the costs. If the IRA owner is unemployed and cannot cover the cost of insurance. The IRA owner or a member of his or her immediate family needs money to pay for qualified education. This rule applies not just to the study itself, but also for tuition, room and board, books and other materials. If the IRA owner withdraws in an equal series of “substantially equal periodic payment” during their life expectancy. The IRA owner can also use $10,000 from the IRA to buying his or her first home.
Now that you have learned all of the rules about placing precious metals into your IRA account, it is now time to get in contact with our recommended IRA custodian to setup or transfer your current IRA or 401(k) to one that is backed by precious metals. * Setup a Gold IRA today Watch this video to see more about investing in gold IRA, gold ira account, regal assets gold ira