With Roth IRA, do you take possession of the metal?

Mission16

I'm sure I can google this but then I have to sort thru all the ads.

Justacommeman

With a Precious Metals IRA you will take possesion when you withdraw it and pay any necessary taxes. You will also pay penalties if you withdraw early from my understanding. Until then it stays in the possession of the custodian of the IRA account.

MJ

derryb

See if this helps

Question you have to ask yourself: Will metals be out of favor (down) by the time I can pull them out of my IRA without penalty?

Note that the account holder cannot put his metal into the IRA. He has to have it purchased by the custodian from a third party dealer. Account holder never touches the metal until withdrawn. You also have to look at any counter party risk with someone else holding your physical metal. I don't like PM IRAs, but that's just my opinion.

Justacommeman

<< <i>I don't like PM IRAs, but that's just my opinion. >>



Amen Brother derry. MJ

derryb

Much more opportunity, and safety, with a self directed IRA that continually purchases and sells paper forms of metal or miners. This allows one to take advantage of peaks and dips and move to cash at any time. Anyone doing their own trading with an IRA needs to be fully aware of the IRS restriction of using "settled funds" to make purchases.

If it's a regular IRA taxes are only paid when withdrawals are made from the account. If it's a ROTH IRA taxes are not owed on any withdrawals, all gains are tax free. Anyone wishing to change their regular IRA to a ROTH should research IRA "conversion" (not the same as a rollover). One can hold a number of IRAs, both types.

ricko

I have always considered PM's to be my personal store of wealth. I would not be comfortable with others in control. (Just because you are paranoid does not mean no one is out to get you. ) Cheers, RickO

OPA

I believe that there is a 5 year waiting period on Roth Ira's before penalty free withdrawals are allowed.

derryb

<< <i>I believe that there is a 5 year waiting period on Roth Ira's before penalty free withdrawals are allowed. >>


Correct, five years from the year initially funded. Amounts rolled over or converted to a Roth each have their own specific five year period that begins at the time of rollover or conversion. There is a difference between a rollover and a conversion.

ROTH IRS publication 590

jmski52

Why anyone would want the government as an arbiter between themselves and their retirement money under any circumstances totally escapes me.

derryb

<< <i>Why anyone would want the government as an arbiter between themselves and their retirement money under any circumstances totally escapes me. >>


Tax deferred contributions/employer matching funds with a regular IRA/401k?
Tax free gains in a ROTH IRA?

If you're gonna put something away for retirement might as well enjoy some tax breaks doing it. Now if I were a young person with decades before retirement I would consider other options such as stacking PMs. The further out one's access to the retirement funds is, the more likely they will be worth less, or not even there.

streeter

I have never quite been able to figure out why a person would,

a) put a non interest bearing item(PM) in a tax deferred account,

b) with limited control of the asset and ,

c) let someone else have possession of it.

but to each his own.

MsMorrisine

<< <i>I have never quite been able to figure out why a person would,

a) put a non interest bearing item(PM) in a tax deferred account, >>


a bet on capital gains. would have worked in the lost decade.




<< <i>b) with limited control of the asset and , >>


only control is to liquiate or not.

one has the same control with Exchange Traded paper and someone else still has possession, and in this case if you want to trade miners, you can.




<< <i>c) let someone else have possession of it. >>



yes. and those storage fees aren't fun.




I'd be more inclined to not have a PM account and just trade what paper is out there on the exchanges.

percyb

<< <i>I have never quite been able to figure out why a person would,

a) put a non interest bearing item(PM) in a tax deferred account,


but to each his own. >>



You could put a growth stock paying little or no dividend in your IRA...for example Apple or some fast growing co. whose stock soars.
You can sell it off in your IRA and not pay the taxes in the same year.

But it makes no sense to me to put PMs in your IRA. Why bother particularly since you can make transactions in cash w/o the gov-IRS taking vig.

streeter

"Why bother particularly since you can make transactions in cash w/o the gov-IRS taking vig. "

VEE haff vays of finding out.

piecesofme

I'd be more inclined to not have a PM account and just trade what paper is out there on the exchanges

+1
And then if you are successful in trading the exchanges, take those profits to buy physical. Before you set out to do it, be strict with yourself and say whenever any particular trade reaches a set percentage gain that you determine, you sell that trade and take the profit to purchase physical. Tell yourself there will be no going back & forth. Whatever profits from trading are realized after reaching a set sell point you determine, that money purchases physical.
I also have a rule that I will only avg. down 1 time on a paper trade and as with a set sell point for profit, once I reach a point on the bad side of a trade, I cut bait and start developing a plan for the next one. Dwelling on a bad trade is not only bad because of the monetary loss, I feel it is bad for your physical and mental health. Just move on. Of course you must learn from what you did wrong and apply that gained knowledge going forward, but don't dwell on it. If it sounds like I'm speaking from experience, on both sides of the trade, it's because I am.

percyb

<< <i>I'd be more inclined to not have a PM account and just trade what paper is out there on the exchanges


I also have a rule that I will only avg. down 1 time on a paper trade and as with a set sell point for profit, once I reach a point on the bad side of a trade, . >>



I use stop orders, but tend to let profitable trades breathe more. I have learned to put stop orders in under profitable longs to keep from giving up the profits. Another good piece of advice is not to trade too many positions at once....two or three tops in a trading account.