Investors often wonder whether self-directed gold retirement accounts are worth considering. But these types of investments aren’t just for wealthy investors anymore. They offer an opportunity for everyone to invest in precious metals without paying any fees or commissions.
Here are five types of IRA accounts that are worth considering.
#1. Self-Directed Roth Individual Retirement Account (Roth IRA)
This account offers tax advantages similar to those offered by traditional IRAs but has no required minimum distribution rules.
With a Roth IRA, contributions made after 2012 are subject to taxes later, but withdrawals taken early don’t trigger taxes. This means that you won’t pay taxes on earnings until you withdraw funds from the account.
However, unlike traditional IRAs, you can’t deduct contributions to a Roth IRA. And since there are no required distributions, you can leave your Roth IRA untouched for decades.
#2. Self-Directed Traditional IRA
Traditional IRAs allow you to contribute up to $5500 annually ($60000 for married couples filing jointly). Unlike Roth IRAs, you can deduct contributions to a traditional IRA.
Unlike traditional IRAs, however, you can’t touch your traditional IRA unless you reach age 59 1/2. If you do decide to withdraw funds, you may owe taxes on the amount withdrawn.
#3. Self-Directed 401(k) Plan
Similar to a traditional IRA, a 401(k) plan lets you save for retirement without incurring taxes right away. However, unlike a traditional IRA, you can’t deduct your contributions to a 401(k) account.
A 401(k) plan also allows employees to borrow against their future salary. As long as the loan doesn’t exceed 50% of your vested balance, you can withdraw the money at any point without penalty.
#4. Self-Directed 403(b) Plan
Like a 401(k) program, a 403(b) plan lets you save money for retirement without incurring immediate taxes. Like a 401(k) loan, you can borrow against your future salary.
However, unlike a 401(k) or 403(b) plan, you can’t take advantage of the loan feature if you leave your job.
#5. Self-Directed Education Savings Plans
These plans let parents set aside money for children’s education expenses. Withdrawals from these accounts are taxed as ordinary income and are limited to $1000 per child.
Parents can also borrow against the balances in these accounts. Parents can borrow up to 100% of the value of the account, provided that the total loan does not exceed the balance in the account.
In conclusion, investing in precious metals is one way to diversify your portfolio. You have many options when it comes to choosing which type of investment vehicle works best for you.
To learn more about how to invest in precious metals, check out our blog post here.
