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Benefits of 401k to Precious Metals IRABenefits of 401k to Precious Metals IRA


Benefits of 401k to Precious Metals IRA

In this article we will discuss why you should consider rolling over your traditional IRA into a precious metals IRA, also known as a Gold IRA. Investing in physical precious metals is the best way to diversify your retirement portfolio, protect against inflation, and potentially generate long-term appreciation.

Benefits of 401k to Precious Metals IRA metals include gold, silver, platinum and palladium in the form of coins or bars. In most cases, a physical IRA investment must be stored in an IRS-approved depository, such as SchiffGold’s Secure Vault. Depository fees are charged annually based on the dollar value of your investment.

Maximizing Returns: Benefits of 401k to Precious Metals IRA Transition

Like a traditional IRA, your contributions are tax-deductible and growth is tax deferred until withdrawals in retirement. Withdrawals are taxed as ordinary income, unless you have a Roth IRA which allows for tax-free withdrawals. If you withdraw from a traditional IRA before age 59 1/2, you will be subject to a 10% early withdrawal penalty. Once you reach age 72, you will need to start taking required minimum distributions, or RMDs.

Most traditional IRA investments are paper-based assets that may be vulnerable to inflation, while precious metals tend to perform well during periods of economic turmoil and provide a strong hedge against inflation. Many experts agree that including a precious metals IRA in your retirement portfolio is a smart financial move. However, beware of numismatic coins and precious metals dealers who make commissions on sales, rather than charging a flat fee to clients for their services. This often results in higher purchase and storage fees for IRA investors.