Question 1: How do I get started?
Talk to your Account Executive representative today for more information about getting started with a precious metals IRA. You will have the opportunity to choose a trust company whose services best match your needs. You will receive an information package provided by the trust company that includes application paperwork needed to establish an account. Your representative will help you to choose one or more precious metal asset that represents the best opportunity for your future. Then, after completing the few simple steps, you will be enjoying the freedom, flexibility and security of a self-directed precious metals IRA.
Question 2: How does a precious metals IRA work?
You may fund your precious metals IRA with a variety of different gold, silver and platinum coins. Most people choose American Eagle coins from the United States Mint. Your coins are held by a third-party trust company specializing in self-directed retirement funds, which is fully licensed and regulated by federal and state agencies. You can then fund your account and direct the trust company to acquire exactly the metals you want from Allegiance Gold. Your coins are then shipped to a secure, fully insured depository that will hold your coins for the full term of your IRA.
Question 3: What are the advantages of a precious metals IRA?
An Individual Retirement Account gives you a tax-advantaged way to save for the future. By following the relatively simple guidelines required by IRA plans, you can enjoy tax-deductible contributions, tax-free withdraws, or other benefits not available with traditional savings and investment strategies. The fact that precious metal coins are sold in both bullion and collector markets gives them two distinct values, allowing you the possibility of further, unique tax advantages. And since a precious metals IRA is a self-directed investment, you have complete control to change or re-direct the assets in the fund, unlike many paper-asset based IRA strategies, where your money is under the direction of nameless, faceless fund managers.
Question 4: What forms of precious metals may I add to my IRA?
Originally, only American Eagle gold and silver coins and proof issues were allowed for investment in a precious metals IRA. In 1998, new laws allowed the American Eagle Platinum coin and proof to be included, as well as a select variety of gold, silver, platinum and palladium bullion products that meet certain standards. American Eagle coins remain the most popular way to contribute, however, and since Allegiance Gold specializes in targeting low mintage issues of Eagle coins, your representative’s recommendations are likely to focus on them. That said, your precious metals IRA is all about freedom of choice, and your Allegiance Gold Account Executive will help you to add any qualifying precious metal asset to our account that you desire.
Question 5: How do I fund my account?
In selecting precious metals assets to add to your account, you work with your Allegiance Gold Account Executive the same way you would to acquire any other precious metals holding. You decide when and what coins to acquire – you are never obligated to fund your account at any time. Once you have made a decision, you then fund your account with cash, transfer, or rollover assets, and direct the trust company to acquire the metals from Allegiance Gold on the terms you have established with your account representative. Unfortunately, law does not permit you to fund your account with coins that you already own.
Question 6: What happens when I’m ready to draw assets from my precious metals IRA?
Your options for taking a distribution of IRA assets will depend upon the type of IRA account you have selected. You will have the option to allow Allegiance Gold to liquidate your precious metals assets, or to take physical delivery of your coins. Either way, you have the opportunity to benefit from both the bullion value of the coins, plus any numismatic appreciation that may have accrued.
Question 7: Am I eligible to open a precious metals IRA?
To be eligible for any Individual Retirement Account, you must receive some form of compensation, such as from a job, self employment, or alimony. Presently, income from investments, pensions or annuities does not qualify. Since the amount of compensation required to fully fund an IRA account is relatively modest, almost everyone can participate in some form of IRA. To contribute to a traditional IRA, you may not be older than 70 1⁄2 years. You may contribute to a Roth IRA at any age, however. There are other rules and guidelines that will influence your choice of IRA plan. Your Account Executive can provide you with additional information that can help you to decide what type of IRA is best for you.
Question 8: What fees will I have to pay?
Setup fees will vary among trust companies, but around $100 for your first year is a good number to plan for. Subsequent annual fees will be based on the asset value of your IRA holdings and range from around $50 to around $500 for the largest accounts. Trust companies receive no commission from any of your investment actions, so these separate fees are necessary to cover the cost of maintaining your account. Allegiance Gold makes no commission on fees paid to your trust company. The costs associated with your account are transparent– rather than being hidden.
Will it be easy to manage my IRA account?
Self-directed IRA accounts give you unmatched flexibility and a high level of convenience, as well. You can direct changes in your fund by telephone or fax if you choose. You will regularly receive easy-to-read statements of your account that include an estimated market valuation of your assets. These estimates will be based on the bullion value of your coins rather than any potential numismatic value, which will serve to hold down certain fees (see following section on fees). Necessary IRS reporting will be handled promptly by your trust service.