Precious Metals IRA Investing

precious metals goldThe ability to invest in precious metals with your IRA is yet another perk to opening a self directed IRA with New Direction. Freedom to invest in alternative assets allows our clients to bring balance to their IRA  investments, which have traditionally been dominated by the securities market. If you have knowledge and experience in the precious metals market, or have always been interested in investing your IRA funds in gold or silver, a precious metals IRA could be an excellent way to diversify your retirement portfolio.

The ability to self direct a precious metals IRA requires holding an account with an IRA administrator that has the capacity to manage the bookkeeping of your alternative assets. Many financial institutions that promote self directed IRAs only allow their account holders to invest in assets that their institution can easily access, or assets that provide their employees with commission (e.g. stock brokers). Through New Direction IRA, a self directed precious metals IRA allows you, the investor, to choose from an almost limitless array of alternative assets.

Once your Precious Metals IRA is established with New Direction, you may direct us to invest your IRA funds in any qualifying precious metals opportunity you choose, providing it falls within IRS guidelines.

As with any IRS-related pronouncement, there are exceptions. When purchased, the precious metals become an asset of your self directed precious metals IRA. In addition:

  • Your investment must consist of eligible products including: gold, silver, platinum or palladium. The metals must also meet certain fineness requirements.
  • Neither you nor any disqualified persons may have previously owned the precious metals purchased by your precious metals IRA.
  • You must ensure that your intended purchase is not a prohibited transaction. A prohibited transaction involves the improper use of your IRA or Qualified Plan holdings by you or any disqualified person. A disqualified person is any member of your immediate family (except siblings), employers, certain partners, fiduciaries, and other categories specified in the IRS code.
  • Your asset must be for investment purposes only.

 

Step-By-Step Process of Opening a Precious Metals IRAprecious metals silver

  1. Opening the account with a self directed administrator is the first step. The administrator must be authorized by the client to sign the sales contract.
  2. Funding the account should quickly follow account opening. Transferring of funds may take as little as 3 weeks or up to several months, depending on the client’s custodian. Having the funds distributed to the client and rolled over into the new self-directed account is the fastest way to fund the account. However, there are restrictions on how often this can be done.
  3. Once the precious metals IRA is opened and funded, the client will work with a precious metals dealer of their choice to determine the precious metals that will be purchased, the price, and the terms of the asset.
  4. The client will direct New Direction to purchase the precious metals with their self directed IRA by completing a Precious Metals Buy Direction Letter. Please note the Buy Direction Letter should be accompanied by an invoice/buy order from the dealer showing what the IRA is purchasing and the client’s approval of that invoice/buy order (signed by client as ‘read and approved’). Also included should be the wire instructions for the dealer, and depository agreement (both should be signed by client as ‘read and approved’).
  1. New Direction IRA typically funds investments within 48 hours of receiving the completed investment paperwork.
  2. Once purchased, the precious metals will be shipped to the client’s account at the depository.
  3. New Direction IRA provides ongoing administrative services and bookkeeping for the self directed IRA assets.

To learn more about how you can open a Precious Metals IRA with New Direction, consult the Precious Metals Webpage.

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