IRA accounts and Bullion Investing

How does one go about using the tax benifites of an IRA account and invest in bullion. I guess the ETFS would be one way to go, but we have beat that horse in the ground latley. I read somewhere that you can buy american silver egales. Is that only new issues or any silver eagle. If you can buy old ones form say a coin dealer does the recipt just have to say AMSE?


Does anyone ever report gains form coin or bullion sales as capital gains?

Do coin dealers issue 1099's?

 

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Whew doggies...getting into grey areas here. Gonna need a tax consultant here...

 

hmmmm im thinking most people on hear don't think about taxes much. I wonder if thats why we all like gold and silver so much :kewl:

 

I thought they were taxed as collectibles at the 28% rate.

 

does this really happen with people actually reporting?

 

Not sure how this works for bullion, but in Michigan, you cannot charge tax for coins and will not have to pay taxes for coins you sell. So, couldn't you just sell bullion (assuming it has face value) as a numismatic item?


stainless

 

You need to open an IRA that allows precious metal investments. You can not use gold that you already own and you can not take posession of the coins in your IRA.

You open the IRA, fund it ..then tell them what you want to buy and they buy it and the coins are housed in an approved repository.

I know the Goldstar trust company has this kind of investment vehicle.

In most cases you are not just limited to buffs, you have a large selection of coins (gold and silver) that you can purchase for investment.

Kruggerands and pre 1933 gold are not eligible. IRA eligible coins must be atleast 99.5% pure. Kruggs and old gold are below that level.

There are now as many company's offering gold IRAs as there are scrap gold buyers on TV. Each one many have different requirements. Some might be US only coins based.

Google - precious metal IRAs or something similar and read up on the varieties of funds that are available to you as a consumer.

But with all investments .... never ask for or take advice from forums. Always seek out profession accountants or advisors in your area as laws change depending on local municipalities and states.

 

To the best of my knowledge, the American Gold Eagle, Perth Mint Lunar series and Kangaroo-Nuggets from Australia, the Canadian Gold Maple Leaf and Austrian Philharmonics coins qualify for purchase inside an IRA. Keep in mind I am not a tax professional.

 

This Sux

I have read all about the "ira" accounts online. I was just blindly hoping that I could actaully buy things myself and keep them in my safe instead of someones elses. it is only 5 k a year so not really that much. well obvioulsy if you save 5 k a year for 30 year working life it is 150K and then would hopfully grow, or maybe shrink ( that would sux) so it becomes a lot, but it is not some massivley hudge amount of money. Thanks for the "helpfull sugestions".

 

I don't like the fact that you can't take possession. That's the fun of collecting. IRAs are not for me.

 

There is no way to verify that you actually have the gold you claim.
That would be like the bank giving you interest on the money in your sock drawer "savings account". Ain't gonna happen.

There is nothing wrong with buying 5 ounces of gold (roughly $5,000 in todays dollars) every year and putting it away in your safe.
I do it ..lots of folks do it. You will still have 150 ounces of gold at the end of 30 years. In my opinion gold is to volitile a market for an IRA anyway.

"blindly hoping" is no way to make an investment.

The solution to your problem is to name your safe "ira". Then your could actually, and legally, put $5,000 worth of gold "into" your "ira" every year and still maintain posession of your gold.

 

That doesn't make sense. If you like holding gold, it will have the exact same volitility whether it is held in a taxable account, tax deferred account, or safe.

 

this makes me wonder. as an example, on apmex they have several bars (10 oz, 100 oz...etc...) from a few different mints that are labeled IRA acceptable, ISO certified...etc... it would lead one to think that several options are available to be put in an ira. along those same lines, why would they sell them that way to an individual if one could not purchase those items from apmex and then transfer them somehow to their ira? clearly, just because they advertise them in that manner does not mean that is the way it works, but it seems to cloud the issue even further.

 

Andrew289: Thank you fro the not so helpfull comints :desk:. I am going to assume you missunderstood what I said and are not just trying to breate me for the hell of it. Also Im going to name my safe after your wife's...

Im not a total DA I was blidnly hopeing to avoid fees and having other people buy "gold, or silver" for me. I can do much better myself. If I went to a couple of dudes i know that have coin shops around my state with 5k they would cut me a deal. vearuse pay fees and premiusm to d bags i'v never meet.


hear is a link form irs.gov that talks about ira accouns

http://www.irs.gov/pub/irs-pdf/p590.pdf

Oh well it was a good thought.

 

Heh, this could get good.

*stainless grabs popcorn*


stainless

 

Very true but I prefer to have my IRA and 401 be more conservative with more diversity (index funds). I don't invest in modern bullion, thats to many eggs in one basket for me. I prefer older gold with a numismatic element.

 

Lots of good info here, but you're allowed to invest in American Gold Eagles (which are not more than 99.5% pure) as well as other coins that are at least 99.5% pure.

Can also invest in other precious metals including silver, platinum and palladium, but the fineness requirements are different for each.

Personally, I would never go for one of these precious metals IRA accounts since you can't take physical possession of the metals until you start taking your required distributions. And even then, the fees associated with these IRAs and the delivery of your metals are much higher than other IRA accounts. However, given the failure of mega-large financial institutions and investment houses, how many managment companies out there do you trust to hold your physical metals for you until you retire???

I'd say for most people you're better off investing in traditional assets in your IRA and if you want metals, buy those outside of the IRA. Especially when you consider the relatively low return on gold/silver over the past 30 years or so compared to the markets and the 28% collectibles gains rate.