U.S. Money Reserve Clarifies How a Precious Metals–Backed IRA Can Differ From a Traditional IRA

While only certain types of assets, such as stocks and bonds, can be held in a conventional individual retirement account (IRA), a self-directed IRA may offer more flexibility — such as the ability to include alternative assets like real estate and gold, silver, and other precious metals coins, rounds, and bars.

A self-directed IRA that includes precious metals, also called a gold IRA, provides tax benefits similar to those offered by a conventional IRA:

• Fund transfers or rollovers from qualified accounts like IRAs or 401(k)s into a self-directed IRA are generally tax-free processes
• Gold coin and bullion contributions are made on a pre-tax basis, and taxes are deferred until you take distributions
• If gold assets are held in a Roth IRA, contributions are made on a post-tax basis, which may equate to tax-free withdrawals after a five-year holding period and if the policyholder has reached age 59 ½.

U.S. Money Reserve customer reviews shared online indicate that portfolio holders may have questions about some of the specific aspects involved in establishing and funding a self-directed gold IRA.

For instance, some consumers may not know that, according to Internal Revenue Service regulations. precious metals assets must generally possess a certain purity level to qualify for inclusion in a self-directed IRA. With limited exceptions, gold assets must have a fineness of at least 0.995, or 99.5% purity, and silver assets are required to have a fineness of 0.999 or greater.

The IRS also requires all precious metal assets held in a self-directed IRA to be kept at an IRS-approved depository. While policyholders retain ownership of the assets, they cannot physically possess them until they are ready or required to take a distribution from the account.

After establishing a precious metals–backed IRA, one can either transfer funds from an existing IRA or rollover funds from another qualified retirement account, such as a Roth IRA, SEP IRA, or SIMPLE IRA. Other options for funding a precious metals-backed IRA include a 401(k), 403(b), 457(b), pension plan, or Thrift Savings Plan.

To roll over funds without incurring tax penalties, you can utilize a direct trustee-to-trustee transfer — where money is moved from your current IRA provider to your new precious metals IRA provider — or by having your current IRA account custodian mail a check directly to you.

As a number of U.S. Money Reserve reviews mention, the company — which has shipped more than $2.5 billion in precious metals and served more than 785,000 clients — can help guide you through the process.

“I contacted U.S. Money Reserve interested in learning about precious metals,” posted Eric L. in an online U.S. Money Reserve review. “[My account representative] explained how gold and silver in my portfolio would help anchor my portfolio…. I appreciate his answers to many questions and the helpful information sent to my home and emails.”

Posted Cynthia S., “Dealing with your hard-earned money can be stressful in this economy, but [U.S. Money Reserve] made it easy. I know I made the right decision.”

And Dan K. raved in his U.S. Money Reserve review, “I have had nothing but professional interactions with any and all agents that I have dealt with at U.S. Money Reserve. Overall, I am very pleased with my experience with U.S. Money Reserve and would recommend them to anyone.”

To read and see in-depth U.S. Money Reserve reviews that describe what it’s like to work with the company, visit U.S. Money Reserve’s website at usmoneyreserve.com. For more information on setting up or funding precious metals–backed IRA, call U.S. Money Reserve at 1-888-708-0458.

(Disclaimer: Devdiscourse's journalists were not involved in the production of this article. The facts and opinions appearing in the article do not reflect the views of Devdiscourse and Devdiscourse does not claim any responsibility for the same.)