The end of calendar year 2015 is coming up fast, and that means it’s time to think ahead about your IRA and other accounts that will figure when you file your taxes next April.
Some people are wondering about putting gold and other precious metals into their IRA accounts. On first thought, that makes sense. Gold prices are low right now, after all, so you’re probably not going to sell gold soon. Why not roll your gold into your IRA and not even think about selling it now?
Fact: There Are A Few Good Reasons to Fund Your IRA with Gold or other Precious Metals
If you stop to think about your IRA, or about IRA accounts in general, you’ll realize that the biggest reason to put investments into them is to avoid paying income tax on the interest and dividends that you earn from them. If you have cash and it is earning interest (you’re a lucky individual if that is bringing you much income with today’s interest rates), you won’t be taxed on that interest income if you have put that cash in your IRA. The same is true for stocks and mutual funds; you can put them into your IRA and forget about paying income tax on the money you earn. (Of course when you retire and begin to withdraw money from your IRA, the money you withdraw is subject to tax. That’s a question to discuss with your accountant or tax advisor.)
Precious metals are different, and pose some unique challenges to you, your tax preparer and your accountant. One challenge is making a credible statement to the IRA about just what you have put into your account. You won’t know the value of those precious metals – especially any precious metals that you need to recycle – at the time you put them into your account.
That is a stumbling block, and it helps to explain why investment companies observe strict rules about what kinds of metals can be put into IRA holdings. Fidelity Investments, just one example, will only allow its clients to put certain kinds of precious metal holdings into their IRAs. They are investment items that can be easily listed and accounted for, including (for Fidelity), coins that include the Gold American Eagle, Gold American Buffalo, Silver American Eagle, Platinum American Eagle; and also bullion bars that have a well-documented weight and gold content.
Why a Specialty Metals Pool Account Could Be a Better Choice for You
When you consider those obstacles, it becomes clearer that a Specialty Metals Smelters and Refiners Pool Account could be a better choice for unlocking future investment gains from precious metals, especially those that you have not recycled.
- You send us your gold and precious metals or materials that contain gold or precious metals that can be recycled and we establish your account. You can set it up with gold and precious metal scrap, used sputtering targets – anything that contains precious metals.
- We send you a full report that explains the content of your scrap or other recyclables.
- At some point in the future, you can tell us to sell the metal at the then-current trading/market prices and pay you the value of your Pool Account.
In that way, you can take advantage of future price increases by having us liquidate your gold only when prices reach a point that you specify. You might also be able to enjoy other financial benefits, including the ability to defer capital gains taxes on the sale of gold or other precious metals until you ask Specialty Metals to issue you payment for gold that is held in your account. Please consult your attorney or tax preparer to decide whether that option is available to you.
Want to Know More about Specialty Metals Pool Accounts?
To learn more about the advantages of a Specialty Metals Smelters and Refiners Pool Account, call us today at 800-426-2344.
Trends for 2015 that Could Impact the Value of the Rare and Precious Metals that You Own
Contrarian Investing – Why Aren’t More People Turning to Gold Right Now?
Why Low Trading Prices Make Bullion a Better Investment Choice
How to Get a Fast and Profitable Return from Palladium Bullion and Coins