Part 2 – Gold retirement planning 101 – Taking possession of your precious metals with little to no tax penalties

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This article was allowed to be reprinted with permission from http://theheartofgold.net.

I was reading a few threads on the survivalist forums and was shocked at how many ignorant people actually told other investors that you can’t take precious metals out of your IRA/401k plan.

FALSE! WRONG! I’ve seen people do it after just 5 months of opening up their gold IRA!!!

This is why you need to read and talk to a lot of people. The IRS tax code is expansive. At the time of this writing, it’s like 74,000 pages. Don’t you think there’s some kind of loophole or exemption/allowance to let you withdraw your metals whenever you want to? Who do you think would have a huge incentive to make the IRS have such a rule?

Hrmm, I wonder…

I’m going to oversimplify the process, and each gold IRA you setup will be tailored to your own situation but most of you have these options when it comes to obtaining precious metals. They are:

  1. Cash out your IRA/401k and just take the post-tax money leftover to buy metals. You lose on the 10% penalty (if before age 59.5) and you paid the regular income tax rate. Plus you pay tax on any gains in metals. You lose so many times it’s almost laughable to call this “fair” to you.
  2. Cheat the IRS and on your taxes and hope you don’t get caught. I don’t recommend this for obvious reasons.
  3. Setup a painfully difficult Individual Retirement Account that specializes in holding precious metals. This is difficult because the paperwork is enormous. Luckily for me, I know of a company that handles the bulk of it, and just has you fill out 1 simple sheet of paper instead, free of charge. More on that later.

Assuming you took the harder path, which is #3 from above, then you need to know the advantages. Instead of getting hit by any income tax, setting up an IRA that will purchase your precious metals for you will allow you stay in good graces with the IRS, and keep your tax burden in deferred/exempt status. Depending on which type of IRA you use, you can choose to pay the tax once now, upfront, or pay the taxes later. To maximize your profits and economic protections, I’d recommend paying the tax upfront. I’d rather pay $28% on $30,000 than pay 28% on a future gain of $200,000 or more. Since this was done through an IRA, no worries about the 10% early withdrawal penalty, and I get to choose when to pay that initial 28% precious metals tax. Plus, I can choose not to pay the 28% on future capital gains if I choose to pay the tax now. Again, this is only applicable to a gold IRA/401k.

See what I’m getting at. The choice of course, is up to you.

What’s better is that the earnings from an IRA could be tax-exempt if you choose the right one. I’m over-simplifying this process but if you contact Regal Assets on the right-hand side of this page, they can answer questions about your tax liabilities and how to avoid them, legally.

Another advantage is that you can withdraw your metals when you want to, though I recommend waiting a few months because you don’t want the IRS to think you’re a “dealer” in which case you will be flagged and taxed at normal income rates. A co-adjutant at Regal Assets can tell me when it’s safe to take possession of my metals. Delivery typically takes about 4 weeks from depository to your physical address. Lots of paperwork needs to be done and security checks need to be performed, which you do not have to worry about, luckily.

Once you receive your metals, I strongly recommend a safe that is locked in your house.

In part 3, I will reveal to you the real economic indicators to watch for. This allows you to measure with greater accuracy when the economic system/US dollar collapses. These precursor economic indicators have been manipulated and shunned away by both the government and mainstream investment community/media. They say it’s “old” and “outdated” and there are some valid arguments to that.

Except that there are 48 million people on food stamps yet the stock markets keep going up. CPI inflation is 2.5% but 5-10 year Treasury-Inflation-Protected-Securities are at 10%, which means inflation is really 10%. What is going on? Don’t even get me started on true unemployment rates, or how hard it is for me and my 31-year old friend to get a “good” job. There’s too many inconsistencies. See you soon, thanks!

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