If you are seeking a retirement strategy that will allow you to sleep well at night knowing your money isn’t rotting away thanks to inflation, you need to start making a plan.
For many investors fearing these turbulent times ahead, this means opening a Roth IRA account. These types of retirement accounts will provide tax-free withdrawals once you are able to qualify (the retirement age.) Most people know about the Roth IRA and it’s major advantages, so today I’m going to talk about a boutique product that’s really been growing in popularity lately – the Roth gold IRA.
The Roth gold IRAS allow you to invest funds into precious metals. You’ll be able to protect your savings against inflation as well as rely on the stability of gold, silver, and more, to keep a diversified portfolio.
If this is something you’d like to set up, this page will outline everything you need to know about how Roth gold IRAS work.
The first thing you’ll need to know is that the Roth gold IRA will be set up as a self-directed IRA. This is an account that offers incredible advantages for investors, as it allows them to make investments outside of the traditional stocks, bonds, and mutual funds that a financial advisor usually trades. You can use this account to purchase real estate, invest in art, cryptocurrency, anything collectible, and of course, precious metals.
Using your Roth silver IRA or gold IRA, everything you invest into the account is post-tax money. This means that while you won’t get a tax deduction the year you contribute, but you will get to allow the money to grow tax free and not have to pay any taxes on it when you reach retirement age and begin to make withdrawals. If you expect you’ll be in a higher tax bracket in your retirement years, this is the perfect vehicle for you.
In order to start a Roth gold IRA, you will have to choose a custodian. Any of the top rated gold IRA companies can help you make that choice, as they have all been vetted, tried, tested, and reviewed thoroughly. Once you get their assistance to open an account, they will handle all of the IRS requirements and you just have to fund it. Many people choose to do a transfer or a rollover from an existing account, which can be an IRA, pension, or 401(k) and much more.
> Suggested Reading: How does a gold IRA work?
Gold Roth IRA – Important to Know
It’s important to know there are annual contribution limits with any type of Roth IRA.
You have the ability to contribute no more than $6,000 annually if you are 49 or younger and $7,000 annually if you are age 50 or older. You are able to contribute to this account at any time, however, even while enjoying your retirement. Again, these aren’t going to help you on your taxes at all, because the money has already been accounted for tax-wise.
You will face penalties if you withdraw any funds before you reach full retirement age. That’s standard with any Roth IRA and isn’t specific to precious metals Roth IRAS. If you do take any deductions out before the age of 59.5, you will have to pay a 10% penalty on whatever amount you took out. In situations, that’s also income that will be taxed.
Frankly, most people don’t invest in retirement portfolios to withdraw it and only do so when in extreme situations, so it’s not a huge deal but I like to share the full details.
Best Gold Roth IRA Companies
You’ll see a lot of different types of ways you can set up your precious metals retirement account, and in the case of top gold Roth IRA companies, that list will mirror what you’ll see for any type of precious metals IRA.
Is a Roth gold IRA worth it?
If you are asking yourself “Is a Roth G0ld IRA a good idea?” you should know that there are no better vehicles for growing retirement wealth than the Roth IRA. When you use this set-up to avoid taxes in retirement, especially coupled with investing in precious metals like gold and silver, you can grow a portfolio of diversified investments tax-free and sleep well knowing that precious metals traditionally have grown in value when the economy faces economic turbulence.
If you are still looking for more information, check out our gold IRA guide and of course, feel free to get in touch with the companies we recommend.