{"id":22403,"date":"2023-02-23T20:11:19","date_gmt":"2023-02-23T19:11:19","guid":{"rendered":"https:\/\/businessfinancenews.com\/?p=22403"},"modified":"2023-03-09T18:29:31","modified_gmt":"2023-03-09T17:29:31","slug":"gold-ira-tax-rules","status":"publish","type":"post","link":"https:\/\/businessfinancenews.com\/gold-ira\/gold-ira-tax-rules\/","title":{"rendered":"Gold IRA Tax Rules"},"content":{"rendered":"\n

Gold IRA Tax Rules<\/h2>\n\n\n\n

We do here a thorough analysis of the gold IRA tax rules. in our complete guide about what is gold IRA<\/a>, we only summarized a few bullet points.<\/p>\n\n\n\n

The tax treatment is one of the several benefits of gold IRA<\/a>, and we explained all of them in that article. <\/p>\n\n\n\n

The Internal Revenue Service allows certain types of precious metals \u2013 gold, silver, platinum and palladium \u2014 to be purchased by an individual retirement account. A Gold IRA is a generic term for a self-directed IRA that holds any of the four acceptable precious metals.<\/em><\/p>\n\n\n\n

When an IRA is self-directed, the custodian has wide latitude to hold various types of assets in the account. Gold IRAs are usually set up with precious metal broker\/dealers who can buy, sell and store your physical coins and bars.<\/em><\/p>\n\n\n\n

In order to be compliant with gold IRA tax rules, you must limit your precious metal purchases to coins and bars acceptable to the IRS<\/a>. Otherwise, you will be subject to an excise tax and your IRA may lose its status as an IRA.<\/em><\/p>\n\n\n\n

Normally, the precious metal must be 99.9 percent pure, although certain exceptions exist for specific coins. The only kind of coins allowed are bullion and some proofs\u2013 you can\u2019t use your IRA to collect rare numismatic coins.<\/em><\/p>\n\n\n\n


If you\u2019re part of the 
32% of working Americans<\/a> with a workplace retirement account, congratulations! You\u2019re already steps ahead of many other Americans, two thirds of whom don\u2019t contribute anything to a 401(k) or other retirement account available through their employer, according to Bloomberg<\/a>.<\/em><\/p>\n\n\n\n

You can get even further ahead, all while potentially mitigating more risk. In addition to contributing to an employer-sponsored 401(k), you can contribute to a Roth IRA, traditional IRA, or a traditional or Roth self-directed IRA.<\/em><\/p>\n\n\n\n

If you don\u2019t exceed the maximum contribution limits (based on your income level and age), you can contribute to all of your retirement accounts throughout the tax year. You may consider consulting your tax advisor to determine your eligibility.<\/em><\/p>\n\n\n\n

\u201cBecause gold prices generally move in the opposite direction of paper assets, adding a gold IRA to a retirement portfolio provides an insurance policy against inflation,\u201d says Edmund C. Moy, former United States Mint Director and U.S. Money Reserve Senior IRA Strategist. \u201cThis balanced approach smooths out risk, especially over the long term.\u201d<\/em><\/p>\n\n\n\n

Several different forms of gold and other precious metals are acceptable, including:<\/em><\/p>\n\n\n\n

Gold<\/h3>\n\n\n\n

American Gold Buffalo uncirculated coins (proofs not allowed)American Gold Eagle bullion coinsAmerican Gold Eagle proof coinsAustralian Kangaroo\/Nugget coinsAustrian Gold Philharmonic coinsCanadian Gold Maple Leaf coinsChinese Gold Panda coinsGold rounds and bars produced by a COMEX- or NYMEX -approved national government mint or refinery, meeting minimum fineness requirements<\/em><\/p>\n\n\n\n

Silver<\/h3>\n\n\n\n

American Silver Eagle bullion coinsAmerican Silver Eagle proof coinsAustralian Silver Kookaburra coinsAustrian Silver Philharmonic coinsCanadian Silver Maple Leaf coinsChinese Silver Panda coinsMexican Libertad coinsSilver rounds and bars produced by a COMEX- or NYMEX -approved national government mint or refinery, meeting minimum fineness requirements<\/em><\/p>\n\n\n\n

Platinum<\/h3>\n\n\n\n

American Platinum Eagle coins American Platinum Eagle proof coins Australian Platinum Koala coins Canadian Platinum Maple Leaf coins Isle of Man Noble coins Platinum rounds and bars produced by a COMEX- or NYMEX -approved national government mint or refinery, meeting minimum fineness requirements<\/em><\/p>\n\n\n\n

Palladium<\/h3>\n\n\n\n

Canadian Palladium Maple Leaf coinsPalladium rounds and bars produced by a COMEX- or NYMEX -approved national government mint or refinery, meeting minimum fineness requirements<\/em>.<\/p>\n\n\n\n

Withdrawal Gold IRA Tax Rules<\/h2>\n\n\n\n

Traditional IRAs<\/h3>\n\n\n\n

Traditional IRA contributions are tax-deductible. However, you must pay taxes when you withdraw money or precious metals from your traditional IRA.<\/em><\/p>\n\n\n\n

The amount you withdraw is added to your annual gross income and is subject to ordinary income tax (not capital gains tax). You must also pay a 10 percent early withdrawal penalty for distributions you take before age 59 \u00bd. <\/em><\/p>\n\n\n\n

However, you can avoid the penalty under certain circumstances, such as using the money to purchase your first home or to pay for medical insurance when you are unemployed.<\/em><\/p>\n\n\n\n

You can also avoid the penalty by setting up an annuity based upon your life expectancy. You must begin taking distributions by age 70 \u00bd or else face a 50 percent excise tax on the amount you failed to withdraw each year.<\/em><\/p>\n\n\n\n

Roth IRAs<\/h3>\n\n\n\n

Roth IRA contributions, though not deductible, are always tax-free when withdrawn. Earnings are subject to taxation and penalties under two circumstances:<\/em><\/p>\n\n\n\n

    \n
  1. The account is less than five years old<\/li>\n\n\n\n
  2. You are under age 59 \u00bd<\/li>\n<\/ol>\n\n\n\n

    The first condition always applies, regardless of age. The penalty arising from the second condition can be waived by the same sort of exceptions that apply to traditional IRAs. All other Roth IRA distributions are tax- and penalty-free. Unlike traditional IRAs, Roth IRAs do not require minimum distributions at age 70 \u00bd or any other age.<\/em><\/p>\n\n\n\n

    Bequests<\/h2>\n\n\n\n

    You avoid all taxes and penalties on your remaining IRA balance when you die. Your beneficiaries will have to pay taxes on the money or precious metals they withdraw from an inherited traditional IRA, although inherited Roth IRAs are tax-free.<\/p>\n\n\n\n

    The 10 percent penalty is waived if you inherit an IRA from someone who dies before age 59 \u00bd. However, the 5-year rule for Roth IRAs still applies.<\/p>\n\n\n\n

    Normally, you can space out withdrawals from an inherited IRA to reduce the annual tax bite. You always are entitled to a five-year span, and may qualify for a much longer withdrawal period depending on several factors, including:<\/p>\n\n\n\n