You have probably heard of or may even have your own IRA. But, what in the world is a Precious Metals IRA? Well, it is essentially the same as any other IRA, however, instead of holding paper assets, it holds real assets – physical bullion.
A little over 20 years ago, Congress passed the Taxpayer Relief Act of 1997. Among many, many things put into law with the Act was broadening the types of investments allowed in IRA’s. Specifically, it stated, “Your IRA can invest in one, one-half, one-quarter, or one-tenth ounce U.S. gold coins, or one-ounce silver coins minted by the Treasury Department. Beginning in 1998, your IRA can invest in certain platinum coins and certain gold, silver, platinum and palladium bullion.”
Since the Bill was enacted on August 5, 1997, it really wasn’t until 1998 when HCC started talking about this opportunity and educating our clients about its possibilities. This additional retirement vehicle expands the services and solutions we offer. No matter what your needs or wants are, if it deals with our world – our industry – it is something we can help you with.
Most Precious Metals IRA’s are self-directed IRA’s and that is our particular specialty as a result. However, they can also be setup as Roth IRA’s, SEP IRA’s, SIMPLE IRA’s, HSA, Thrift Savings Plan (TSP) and 401k’s. And they are also known as Gold IRA’s, Silver IRA’s, Platinum IRA’s or Palladium IRA’s – what you call it is up to you and probably influenced by what is actually being held in it. But, quick note...you'll never hold on to it. It must be kept with a third-party depository.
As we mentioned earlier, the Act stated certain precious metals that are allowed and approved by the IRS for Precious Metals IRA’s holdings.
Now that you have officially received your crash course in Precious Metals IRA’s, does your head hurt? Hope not. We’re not quite finished yet. So, what’s next?
Step 1: Select a custodian.
No idea where to start, no worries. We can help guide you through this selection. Each custodian has a different fee schedule and it is important to understand what you are paying for, why and how often.
Step 2: Create an account.
You have to setup and create an account with the custodian you selected. This is needed before any transaction can be processed.
Step 3: Decide how much funds.
Whether you are rolling over an existing IRA or 401k into this or establishing a new one, you need to determine exactly how much money you’d like to start with. You can always add more later…
Step 4: Decide the metals.
Which metal or metals do you want to include within your IRA? Gold, silver, platinum or palladium – they are all available in any possible combination you can think of.
Step 5: Call HCC.
Although we have already spoken with you several times by this point, this is when real action begins on our end. Prior to this, we hold an advisor and consultant role, but now:
Step 6: Develop a contribution plan.
Monthly, annually, “just 'cause” or one-time only, your contribution plan for your IRA can be whatever you want it to be. Whichever you do elect, we’ll be here to ensure that all your needs are met.
Step 7: Sit back, relax and forget about it.
Let the Precious Metals IRA do its thing. Think about when you receive your annual report of performance or when you decide to contribute more to it.