The Best Gold IRA Rollover Strategy

Share on LinkedIn
Share on reddit
Share on StumbleUpon

When the long-term economic outlook is clouded by an unstable stock market, weak employment data, and political turmoil, many consumers begin searching for the best gold ira rollover. For a company that does this for you, check the video review that someone made here.

Individual Retirement Arrangements, known as IRAs for short, allow individuals to defer tax payment on certain types of savings accounts. Some of the more common plans are employee-sponsored. Even self-employed workers and sole proprietors can take advantage of tax deferment aspect of IRAs.

One key provision of current tax law lets plan holders move funds from one IRA account to another. Often, taxpayers do a switch like this in order to get a higher rate of return or because their investment philosophy changes. For example, if an investor thinks the small-cap stock sector will perform well in the upcoming years, he or she might decide to roll a large-cap IRA into one that emphasizes securities of smaller firms.

The ability to switch from one account to another, yet still have the funds treated as an IRA, is a huge advantage for U.S. workers. A popular strategy among gold and silver enthusiasts involves moving IRA money into plans that weigh itself towards holdings of gold, gold stocks, and gold mining operations.

Several decades ago, when the securities markets were more stable than they are today, mutual funds enjoyed massive popularity among investors and workers with IRAs. Few viewed gold or other metals as worthy vehicles for tax-deferred savings plans. However, as economic turmoil became more common than financial stability, investors began taking a hard look at metal-backed funds. While gold tends to be the most visible of the precious metals, silver, palladium, and platinum enjoy attention from precious metals enthusiasts as well.

In the 1980s, silver stocks and silver bullion rivaled gold in the eyes of some investors. Unfortunately for silver fans, that metal has displayed a uniformly volatile price history, typically surging or dropping wildly when the price of gold merely rises or falls by an insignificant percentage. Though the two metals tend to travel in the same general direction on long-term price charts, gold is invariably seen as a wiser, more stable choice for IRA investing.

When consumers seek to roll an IRA into a gold-backed account, they need to remember that it is not an all-or-nothing proposition. In fact, taxpayers can put any portion of their IRA money into a gold fund, while leaving the rest in the original IRA. According to IRS guidelines, a taxpayer cannot exceed the annual contribution limit, however many IRA accounts are held despite this. In other words, it is perfectly legal to have multiple IRA accounts, but the contribution ceiling for each tax category (single, married, etc) still applies. Note that there are NO limits on the amount that can be rolled over in any given year, as long as the money stays within the confines of an IRA.

For the 2013 tax year IRA contribution limits are $5,500 per person, with some exceptions and variations. For the majority of taxpayers, the limit will be $5,500 for single people and $11,000 for married couples.

Leave a Reply