Last Updated on April 4, 2023 by George
Gold is a measure of luxury and has established its stability in the market. Modern-day investors are drawn to its luster: They include gold in their investment portfolios.
With the volatility of the stock market nowadays, it would be beneficial for you to turn your Roth IRAs into gold Roth IRAs. Read more to learn why you should invest in gold this 2023!
#1 Augusta Precious Metals: Editor’s Choice – Great gold IRA Company Overall (4.9/5)
- Outstanding reviews on their services
- They store your precious metals in Delaware Depository
- They have a transparent fee structure
- Offers cost-effective pricing
- High entry cost at $50,000
- Limited options for platinum and palladium investors
Why We Chose It
Augusta Precious Metals has one of the greatest reputations among gold IRA companies. They have established their name in the investment industry as they have been present for over 45 years.
Our team discovered through using this product that they offer hands-on client support and are incredibly transparent in the fees and expenses you will incur if you choose to invest in them. Moreover, they schedule a web conference where you can ask their experts about the processes and other investment-related topics.
We have found from using this product that they also have excellent ratings on verified platforms and have received awards for their contribution to the precious metals industry.
#2 Goldco: Runner up – Great Buyback Program (4.8/5)
- Educational services for investors
- Excellent customer support
- Has a short waiting time for transactions
- Has an A+ rating with BBB
- Limited options on palladium and platinum bullion
- Lack of fee structure transparency
Why We Chose It
Next on the list is Goldco, another one of the premier gold IRA companies which rose to the ranks because of their exemplary customer support. Apart from their customer support, they have a wide selection of precious metals and even have cryptocurrency as one of their investment options.
After putting it to the test, we saw how our existing Roth IRA accounts could be rolled over to become an SDIRA under Goldco in no time. They also offer transfers from 401(k), 403(b), and traditional IRA to an SDIRA to better invest in precious metals. The minimum investment fee for Goldco is $25,000. You can also contact the firm to know more about their transaction fees, storage fees, and custodian charges.
Moreover, after conducting experiments with it, we can assure you that their customer support team includes specialists who are always available to answer queries and assist in transactions done with the company. They also have a plethora of scholarly content for their clients.
#3 American Hartford Gold: Great Price (4.6/5)
- Comprehensive individual retirement account education
- Easy setup of retirement account
- Accommodating customer support
- The precious metals you withdraw can be sent to your front door without additional cost
- Transparency in fee structure
- They offer a gold buyback guarantee
- Lack of international shipping options
- Foreign investors cannot invest in them
- Incomplete price listing on the website
Why We Chose It
American Hartford Gold is one of the leading gold IRA companies. They were established in 2016 and have earned a reputable image due to their customer support and ease of setting up an SDIRA account.
There are three easy steps in setting up a gold Roth IRA account with American Hartford Gold:
- You speak with one of their representatives and complete the paperwork.
- You will transfer your funds to the account.
- You buy your gold and store them in IRA-approved depositories.
If you have any queries, experts from American Hartford Gold are always available. They are happy to address your concerns and clarify your investment expectations.
When we tried this product, we saw that it has a comprehensive investor education program that equips new and existing clients with information on how a self-directed gold IRA works, leading them to make informed decisions in their investments.
The firm only requires a $10,000 minimum investment for starting a gold IRA account, a minimum of $1,500 bullion cash purchases, and an average of $180 custody and storage fee per year. They also have three years of free insurance and maintenance storage for your precious metals.
Our research indicates that the company has been rated 5 stars on Trustpilot and has an A+ with BBB or Better Business Bureau.
#4 Birch Gold Group: Great Staff overall (4.5/5)
- Flat rate for annual shipping and storage
- Strong focus on palladium and platinum
- Multiple choices for custodians and depository services
- Base rate of $10,000 for investment
Why We Chose It
Birch Gold Group has over 20 years of experience in the precious metals IRA industry and has an excellent reputation among gold and silver IRA companies. Our investigation demonstrated that they have a solid financial team of financial advisors, commodity brokers, and wealth managers who assist clients in diversifying their portfolios with precious metals.
They also have palladium and platinum in their roster of precious metals. As for the investment products, they have American Eagles, Canadian Maple, and Indian Head Eagles, which are crowd favorites.
You need not worry about the legitimacy of your coins as they have Numismatic Guarantee Corporation and Professional Coin Grading Service at their disposal to authenticate the coins they offer. These institutions inspect the weight, metal content, and other necessary factors to ensure that every aspect of the gold coins is certified.
#5 Noble Gold Investments: Best Customer Support (4.2/5)
- Hassle-free gold Roth IRA setup
- Upfront fees
- Low-cost minimum requirement
- Comprehensive educational resources
- No international gold storage is available
- Their annual fees are not a flat rate
Why We Chose It
Based on our observations, Noble Gold Investments is the newcomer to this list. However, our analysis of this product revealed that it had become a favorite, especially for first-time investors, since it has a low minimum investment requirement. They also have an extensive educational resource, strengthening their mission to help the neophytes thrive in the industry.
They also provide new clients with an initial consultation to alight their custodians with the prospect’s objectives, preferences, and needs. They are also assigned an advisor to educate them and veers away from high-pressure sales tactics.
As indicated by our tests, their entry cost is $2,000 with an $80 service fee and a $150 storage fee; the latter two are charged annually. Their depository facilities are also insured, so your precious metals are safe!
What is a Roth Gold IRA?
Firstly, Roth IRA is an individual retirement arrangement (IRA) account introduced through the Taxpayer Relief Act of 1997. This type of IRA was named after Senator William Roth and was also known as the IRA plus.
Roth IRA differs from traditional IRA as the latter’s tax benefits include tax-deferred growth and tax-free contributions. Meanwhile, you don’t have to pay taxes since distributions made in Roth IRA accounts are tax-free.
Also, their contributions are made with after-tax dollars, meaning your Roth IRA contributions will not be deducted from your tax returns. However, the upside of your Roth IRA distributions is that they’re not taxable upon retirement.
Compared to 401(K) plans, Roth IRAs are not paid for by your employer but funded by you, the wage earner, regardless of your work.
Also, Roths have a maximum income restriction, which traditional IRA accounts do not have. In line with this limitation, if you are single and are earning less than $129,000 or married and earning less than $191,000, you are eligible for Roths.
If you choose Roth or traditional IRAs as investment choices, you have more options than 401(k)s. Although, since both require IRS-approved IRA custodians, your choices may still be limited in terms of assets that you can select.
Additional information regarding other retirement accounts is that 401(k), solo 401(k), 403(b), 457(b), Simple IRA, and SEP IRA all have Gold Roth options. On the other hand, a Keogh plan, profit sharing plan, money purchase plan, and annuity do not have Roth options and may or may not be allowed gold stocks.
How Does a Gold Roth IRA Work?
Through our practical knowledge, note that a Roth IRA by itself does not accept precious metals like gold as an asset. However, our findings show that you can invest in tangible assets if they are turned into a self-directed IRA account and become gold Roth IRA. Some examples of tangible assets apart from precious metals are collectibles, antiques, art, and real estate.
We discovered that the tax model of a gold and silver Roth IRA differs from the traditional IRA. In the former, you will pay your taxes concerning the contribution you will deposit in your IRA account — this is called a post-tax contribution.
For the latter, you will only be taxed upon withdrawal. If you are in the higher tax bracket upon retirement, a gold and silver Roth IRA is a better option than a traditional IRA.
As mentioned above, you are required to turn your Roth IRA account into an SDIRA account to open a gold Roth IRA account. In line with this, you will need a self-directed IRA (SDIRA) custodian to assist you. They will be responsible for opening your account, purchasing your precious metals, and handling the IRS-required reports.
We determined through our tests that you have different options to fund your gold Roth IRA account. You can fund it via a gold IRA rollover from another retirement account like 401(k) or SEP IRA, or you can pay with cash.
Furthermore, once you have established your gold Roth IRA, you do not have to think about being capped at a certain age. There are no age restrictions, so you can make your yearly contributions until your investment matures upon your retirement.
Through our trial and error, we discovered that you don’t have to overthink about your withdrawals as well since having a gold or silver Roth IRA account grants you flexibility. You can withdraw your investments without being charged taxes or penalties. Although, note that you can only withdraw once you turn 59 ½ to avoid any penalties.
Penalties are often charged on IRA accounts when the account owner makes an early withdrawal. For example, in traditional IRAs, one will have to pay a 10% penalty upon withdrawal. In addition to that, the money will be taxed as taxable income.
Gold Roth IRA Guidelines
You have set up your gold Roth IRA; what now? As per our expertise, you have to follow some guidelines.
The first one is your contribution limit. With Roth traditional IRAs, you can only contribute $6,000 annually if you are 49 or under. If you are over 50, you can only contribute $7,000 per year.
You can contribute to your gold IRAs until your retirement. It is also good to note that before 2020, the age restriction for gold Roth IRA contributions was 70 ½.
You should also note that your contributions to your gold Roth IRA account are not deductibles. That is, you cannot treat your contributions like how you treat your traditional IRAs — gold Roth IRAs cannot be written off on your tax returns.
Moreover, if you opt to withdraw before hitting 59-and-a-half years of age, then you will be subjected to a 10% penalty on the withdrawn amount, on top of it being taxed as income tax.
Roth IRA Rollover Restrictions & Limitations
Transferring assets or funding from one retirement arrangement to another is called “rollover,” and this can be done from a traditional to Roth or vice versa. You can roll over your employer-sponsored 401(k) account to a Roth account as well. However, you should know that you can only do one rollover annually (365 days), so use them wisely.
In line with the statements above, you can also fund your SDIRA from an existing retirement account (e.g., traditional IRA, Roth IRA, SEP IRA). However, this transfer usually has associated fees, especially if they are pre-retirement withdrawals (before age 59 ½). In these situations, you will be charged a 10% penalty on top of income tax.
For rollovers, it may be better to do a direct IRA to another IRA rollover instead of an indirect one. Indirect rollovers have more withholding requirements and rules and must be strictly followed. Otherwise, you could incur negative financial consequences, which may be charged as fees or penalties.
So, to avoid being billed fees or penalties, opt for a basic IRA-to-IRA rollover to move your existing IRA account to your new SDIRA after a few days. The best thing about this is you will finish the rollover without being charged any penalties!
The ease of direct IRA rollover is due to the help and guidance of an IRS-approved custodian who will set up your new IRA account, transfer the funds, and manage all the paperwork. They will also handle transactions that you have approved and invest in precious metals.
To clarify, you will still have full control over your checkbook and your prospects; however, most of these will be handled by your chosen custodian.
Regarding contribution limits, gold Roth IRAs’ are based on income and status. The income phase-out range for gold Roth IRAs has increased as of 2020.
For individuals or heads of households in the U.S., the range is from $124,000 to $139,000. For married couples, the range is from $196,000 to $206,000.
Moreover, the total contribution cannot exceed $6000 as per the IRS regulations in 2020.
How Do I Buy Gold For My Roth IRA?
Here are three steps you have to follow on how to purchase gold for your self-directed IRA account:
Figure Out Your Source for Funds
First, look into your resources, and check how you will fund your account. See if you can transfer from your current existing accounts or if you have to set up a new one. To check for eligibility for account transfers, refer to a precious metals specialist.
Open a Precious Metals IRA
To open a gold Roth IRA account, you have to speak to an IRS-approved custodian. They will handle the paperwork; all you have to do is sign the documents and open the account with a custodian.
Buy the Metals
After the account is set up, you can place your funds in it and use them to purchase gold bullion or any other precious metals you want. You will also be assisted by a precious metals specialist in allocating your funds.
Alternative Methods of Investing in a Gold Roth IRA
As mentioned above, you cannot buy physical gold with a Roth IRA account unless you turn it into an SDIRA account. However, there are ways you can indirectly earn from them, and it is by investing in gold mining companies, gold retailers, and gold processing companies.
You can also invest via gold exchange-traded funds or gold ETFs, which will then be invested in gold futures contracts or gold industry companies.
Final Thoughts – Gold Roth IRAs
As an investor, you should know that there is no one-size-fits-all approach to financial planning. You are free to invest in stocks, bonds, and mutual funds; however, with the uncertainty of the market, it would not hurt to diversify your portfolio and go down the gold Roth IRA route.
One company that may help you in this investment journey is Augusta Precious Metals. They hold the title of “Best Overall gold IRA company” in this list because of their impeccable customer support, investor education programs, and cost-efficient pricing.
After trying out this product, we can see that the features they offer are helpful to both first-time and experienced investors alike, and with a company as reputable as theirs, it will be hard not to put your trust in them.
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