You too well know that precious metals like silver are a good investment and perhaps you have been purchasing silver for a while or you are just setting your foot to invest in this metal. An area of your retirement strategy that you might have missed or overlooked could be the precious metals IRA. You can invest in IRA approved silver because it offers protection and great value for your portfolio. A self-directed IRA functions in the same way as a regular IRA, however, it is not restricted to only traditional paper assets. With this account, you can hold physical metals and other assets like real estate so that you get the diversification you need. Learning the options you have in silver IRA can help you achieve a stronger financial future.
What’s IRA-eligible Silver?
When you talk about IRA- eligible silver – whether coins, bars, or rounds – they are those produced by accredited assayers and refiners, or by a government minting facility. The silver needs to meet the set minimum level of fineness, which is not less than 0.999. Before you can invest in silver IRA, you need to ensure the precious metal is approved or meets the set standards.
Why Turn Your Nest Egg to Silver?
Many investors are recognizing the huge opportunities presented by silver coins and bullions investments. Silver, like other precious metals, always attracts a high demand. History tells us that precious metals are a superlative currency hedge. When you look at the Federal Reserve, since its creation, the US dollar value has dipped by 95 percent while the demand and price of silver and other precious metals like gold has been soaring. And, that’s not the only reason, placing your investment in IRA approved silver helps you broaden your portfolio while protecting yourself from the banking system. It ensures that your money retains and increases its value.
What Are IRS Requirement for Silver?
Holders of self-directed IRAs are permitted by the IRS to hold of precious metals like silver as an asset in their account. While holding precious metals, investors still continue getting the benefits normally attached to retirement accounts. Investing in IRA approved silver gives investors an opportunity to create and accumulate wealth in retirement on a tax-deferred or tax-free basis.
There are certain requirements set by the IRS for holding of silver in an IRA. For instance, the silver you hold in an IRA should meet the purity standards set by the IRS. It is stipulated that all silver coins and bars should adhere to the purity grade of not less than 0.999. Your silver in an IRA needs to be at least 0.999 percent pure. Another requirement is that the silver for the retirement accounts should be stored in an approved depository. In addition, a qualified custodian should be selected to act as the trustee of the holder’s account. An individual can choose from a dealer or broker who has collaborated or partnered with a custodian to assist them in opening and stocking the account with the right silver bullion.
What Are Some of the IRA-Approved Silver Coins and Bars?
Not all silver bars and coins are approved to be included in the IRA. Although many aren’t approved, they can still aid in protecting your financial future if you purchase and hold of them separately from the IRA. Among the eligible ones are American Eagle Bullion Coins 1 oz and American Eagle Proof Coins. The Silver American Eagle Coin remains the only silver bullion coin in the world that has full backing from the government of U.S. for its purity, weight, and silver content.
The American Eagle Proof Coins represent a unique collection of IRA-eligible silver coins that offer benefits stretching beyond their silver weight – for example, having a greater rarity and lower mintage. Other IRA-eligible coins and bars are the Canadian Maple Leaf Coins, Australian Philharmonic Coins, and the Australian Kookaburra Coins.
In grief, while you can invest in IRA approved silver, you need to understand that you cannot be allowed to add silver you already possess to the self-directed IRA – whether it meets the IRS requirements, or it’s an approved bar or coin. You also can’t be allowed to possess the precious metals while being held in the IRA, your silver should be held within a depository approved by the IRS. The depository, however, can be of your choosing and you can visit the facility to view and touch the silver, but you cannot place it at home until you begin to take distributions. Before you invest, research about IRS Requirement and find out what silver is approved for IRA.