IRA & 401K Retirement Plans

An Individual Retirement Account (IRA) is a retirement savings plan which provides some tax advantages to the individual, like tax-deferred or tax-free growth of any earnings. Because there are a number of different types of IRAs, the age for withdrawal, contribution limits and other important factors vary by type. IRAs can be used as a supplement to a 401(k) account or as an integral part of an investment portfolio.

While there is no limit on the number of IRAs you can have, there is a maximum deferred annual contribution of $4,000. This is a total per individual, whether you contribute to one IRA or several.

A self-directed IRA is exactly like any other IRA, with one major difference. You choose where your IRA funds will be invested, rather than just accepting whatever the IRA Trustee or Custodian decides. This gives you greater flexibility, because you can choose precious metals, stocks, bonds, CDs, mutual funds, government obligations, and other investments.

Your tax or financial advisor can help you determine what type of IRA would best benefit you. Here is a basic overview of the traditional IRA versus the Roth IRA. Basically, anyone who has earned income can contribute to an IRA each year. The maximum contribution amount will increase from $3,000 to $5,000 by 2010, with another $500 to $1,000 allowed for those 50 and over. Depending on your income, marital status, and participation in employer plans, your contribution to a traditional IRA may be deductible. A traditional IRA helps reduce your yearly tax liability, as what you contribute to an IRA each year is deducted from your total income, so you are not taxed on it. You can contribute up to $5,000 each year (total for all IRAs, even if you have multiple accounts). However, if you choose to withdraw your money before age of 59 ½, you will have to pay taxes and penalties. The only exception to this is if you are withdrawing the money for purchasing a house or to cover approved higher education costs – taking your money out for these reasons will allow the penalty to be waived, although you will still pay tax on the amount. With a Roth IRA, you don’t get a tax deduction on contributions, but at retirement, qualified distributions from the account are completely tax free. You are not required to begin taking withdrawals from Roth IRAs after age 70-½. Not everyone qualifies for a Roth IRA – you must have earned a modified adjusted gross income of no more than $116,000 for a single taxpayer or no more than $159,000 for a married couple filing jointly.

Money in an existing IRA can be moved to a precious metals IRA by transfer or rollover, which does not necessitate reporting to the IRS. You can transfer funds as often as you like, without restrictions. You simply open an IRA and authorize the transfer. Your new IRA custodian will contact the previous institution and take care of getting the funds moved. IRA rollovers require reporting to the IRS and there are time limits and other restrictions. You should always seek competent tax advice before taking a distribution for rollover.

Expert investors have for years recommended to clients to diversify their portfolio. Oftentimes, this investment advice entailed investing around 20% of one’s assets into tangible items, such as bullion coins, platinum bullion, silver, gold, and other precious metals. Given the volatile market and economy of today, tangible precious metals are a very sound strategy for diversifying one’s investment portfolio.

The precious metal markets are extremely liquid. With overwhelming investor and industrial demand, you can buy or sell immediately.

No. Unlike options, you own a tangible asset that can be held onto forever, even passed on from generation to generation.

Both. History shows regardless of inflation and deflation, precious metals will outperform paper assets in times of economic crisis and uncertainty.

Your bullion is held in an independent depository – you receive your personal account and password with online access and instant selling ability.

No fees applied. The only cost is on the purchase of bullion, there is a small spread to buy any metal, no spread charge on a sale.

1. Precious metals have offered investors a consistent hedge against declining U.S. dollar value. 2. Precious metals have offered investors a safe bet in times of political, economic, and societal volatility. 3. Precious metals should intrigue investors due to a large profit potential and unmatched price appreciation.