A silver IRA is a way to invest in physical silver bullion and insulate your retirement portfolio from economic fluctuations. Silver offers a valuable hedge against inflation, and it also provides significant tax advantages over traditional investments. However, the value of precious metals can fluctuate, and investors should consider a well-balanced investment strategy before opening a silver or other precious metals IRA.
A specialized type of individual retirement account, a silver IRA or precious metals IRA allows you to purchase and store precious metal-backed assets such as gold, silver, platinum and palladium inside your IRA. These IRA accounts are typically managed by an experienced Harrisburg precious metals IRA custodian, who will purchase the physical assets on your behalf and store them in an IRS-approved depository.
The types of metals that can be purchased and stored in a silver IRA vary, and investors should research the reputable Harrisburg silver IRA and investing company that offer a silver IRA to find the right fit for their investment goals. For example, some IRA providers will only allow you to store bullion coins or bars that meet strict purity standards, while others will accept all types of silver bullion. Investors should also review the tax rules of their IRA before making any purchases.
To open a silver IRA, you will need to have earned income, or be the spouse of someone who has. You will also need to find a company that offers an IRA account, and select the type of account — such as a traditional IRA, Roth IRA or SEP IRA — that fits your financial situation.
After you’ve chosen an IRA provider, the next step is to decide how much money to contribute to your new account. Most IRA accounts have maximum contribution limits each year, but some companies will allow you to make larger contributions if your employer offers a matching program. Once you’ve contributed your desired amount, the IRA will be transferred to the IRA custodian.
Once the IRA has been transferred to the IRA custodian, you will be able to purchase silver and other metals from a trusted dealer like OWNx. You can store the silver in your IRA’s depository or have it shipped to you. The IRA custodian will hold the metals until you reach retirement age, or you decide to withdraw them from your account.
You can withdraw the precious metals from your IRA without paying taxes or penalties if you do so before reaching 59.5 years of age, or if you transfer them to another IRA or to a beneficiary. If you withdraw your metals before this point, you will be required to pay a 10% federal penalty, as is the case with most IRA withdrawals. To avoid penalties, you should talk to your IRA custodian before taking any action. In addition, the IRA must be in good standing, and the custodian should have the correct contact information on file for you. Lastly, you should also make sure to have the correct tax forms with your custodian before withdrawing funds.