A self-directed IRA permits investment in a wide range of assets – including silver. Here’s how to buy physical silver with a self-directed silver IRA.
Creating an individual retirement account (IRA) that accesses a variety of asset classes is a key benefit of a self-directed IRA. The ability to include a flexible and diverse assortment of investable assets into the IRA allows the investor to maintain a greater level of control over the direction and performance of their retirement/investment funds. And that often equates to a greater sense of involvement and ownership in the retirement planning process. Per IRS rules, the only real assets prohibited for use in a self-directed IRA are collectible items and life insurance. If you’re considering a self-directed IRA and want to include physical silver in the account, keep the following steps in mind.
Step one: Open a self-directed IRA account. Work with your preferred investment firm to open the right account. Then, choose a custodian for the account (the investment group is generally the custodian, but it isn’t required). As the director of the account, you are responsible for deciding on the assets used in the investment account and working within the confines of established IRS rules.
Step two: Source an approved depository to hold the physical silver. It is important to understand the numerous foundational IRS rules involved in both self-directed IRAs and precious metals IRAs in general, and one key requirement is that to use an IRS approved depository to hold any physical silver. You cannot simply store silver coins or bars at home in a safe – nor would you want to. The incredible risk is not worth the minimal charges imposed by the secure network of depositories around the globe. Create an arrangement with the depository before you actually purchase the silver bars or coins.
Step three: Contribute to the IRA. Once the account is opened and a depository is selected, fund the IRA by making a contribution within IRS-mandated guidelines. This basically means an individual under 50 years of age can contribute up to $5,500 per year to the IRA, and anyone 50 or older can contribute up to $6,500 per year.
Step four: Decide on the type of silver you’d like added to your retirement account. This must include only the IRS approved silver bars and coins that qualify for use in an IRA – namely, American Eagle Coins, Canadian Maple Leaf Coins, Mexican Libertad Coins, and silver bars with 99.9% purity or greater. Your account provider can help connect you to approved silver coins that can be added to your self-directed IRA.
Step five: Call your precious metals firm to finalize the purchase and transfer of physical silver to your depository/retirement account. Make sure you do not buy the silver yourself or try to add existing silver you own into the IRA. The account trustee you’ve established (again, this is usually the silver IRA firm you’re working with) will complete the actual transfer.
Creating and managing a self-directed individual retirement account isn’t as complicated as it sounds, especially if you partner with a reputable and experienced precious metals firm that has a track record of supporting individual investors like yourself. For more information on self-directed silver IRAs, contact American Bullion today.
Although the information in this commentary has been obtained from sources believed to be reliable, American Bullion does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice. American Bullion will not be liable for any errors or omissions in this information nor for the availability of this information. All content provided on this blog is for informational purposes only and should not be used to make buy or sell decisions for any type of precious metals.