PM IRA account only alternative?

tneig

I need to keep cash ready accounts, for emergencies and asset purchases, so I'm a bit stalled at buying with tighter incoming money.
Don't want to take a 10% penality hit by withdrawing IRA funds, and the tax hit is not good for this year either.

I am aware of IRA PM accounts, but its counter party storage that worries me.
Is some of the risk worth the conversion for a percentage of my pm portfolio?
And are the storage fees, and recorded gains worth it for a smaller account?

Also, I'm at almost 59yrs, can I utilize drawing down on the IRA money at 59 1/2?

derryb

IRA (Regular IRA or ROTH IRA) funds can be withdrawn without penalty in the calendar year you will turn 59 1/2.

I researched IRA metal funds and decided against it for a number of reasons, the biggest being getting out of them quickly when the metal bull ends. If one thinks that the metal run will continue then considering a conversion of your IRA to a self managed ROTH IRA that invests in metal funds and miners would be one option. A conversion is not the same as a rollover. The amount converted is taxed as income for the year converted and estimated quarterly taxes on the amount converted (20% in my case) are due for the year converted. The advantage of the ROTH is no further taxes are owed on the amount in the account and no taxes are owed on any future gains. The ROTH is the only way I know of to make tax free profits on metal investments. A conversion is the only way I know of to make a large deposit to a ROTH. For some it is a worthwhile effort to convert. It was for me, I have recovered all of the taxes that were paid on the amount and am also sitting on some very nice tax free gains. Success of this option if fully dependent on the future of the metals market.

Be sure you understand the difference between a regular IRA and a ROTH IRA. All IRA deposits eventually get taxed, the difference being when they get taxed. Profits in a ROTH do not get taxed while profits in a regular IRA get taxed upon withdrawal. Always consult a tax professional before making any decisions of this nature. All of the tax implication information is available at the IRS website for the do-it-yourselfer.

Keep in mind that personal income taxes will increase for most people begining in 2013. For many, a taxable event that is completed in 2012 rather than 2013 will save them money.

yellowkid

I'm five years older than you, about seven or eight years ago I thought about taking IRA finds, paying my tax, and putting the proceeds into metals and decided I didn't want to pay the IRS yet so moved an amount equal to about 10% into paper PM holdings. For a number of years they were my best performers. I have tapped that a few times for numismatic money and actual bullion as it became a larger % of my portfolio.
I wouldn't have anyone hold physical metals for me. I like holding both physical and paper PM assets as part of a diversified portfolio.

roadrunner

I wouldn't keep physical metals in an IRA as it defeats the purpose of having it "close" to you when it's really needed. It could take weeks or months to get your
bullion delivered out of an IRA once requested. And then there's the risk of possibly changing the rules down the road to only pay you in FRN's what your bullion is worth.
I'd use your IRA to trade PM shares such as GLD, SGOL, TGLDX, USAGX, USERX, GOLDX, SIL, SLV, GDX, GDXJ, etc. as you deem appropriate. While none of these are as
"perfect" and safe as holding the metal in your hands, they at least give you exposure to the PM complex. As long as you buy on the 5-6 month washout cycles, and sell on
the 5-6 month euphoria, you should do fine and accept minimal risk. We're getting closer to the bottom of a 5-6 month washout/rinse cycle right now.