A Self-Directed IRA is similar to a regular IRA in many ways. The biggest difference has to do with restrictions on investments. The custodian of a regular IRA may impose certain restrictions on the types of investments that may be held in the account. With a Self-Directed IRA, you are in control of the types of investments you choose to have in your account. As long as you follow the proper IRS guidelines, you are free to invest as you please.
IRS Regulations for Self-Directed IRAs
The IRS outlines in detail what you may and may not have as part of your Self-Directed IRA. Individuals often choose to hold real estate, stocks, and even tax liens. Any real estate assets may not be a primary residence or that of an immediate family member. Typically, collectibles are not allowed; artwork, rugs, antiques, gems, and alcoholic beverages are a few examples. For more information on IRS regulations for Self-Directed IRAs, consult the U.S. tax code or a tax professional.
Precious Metals in your Self-Directed IRA
Physical gold, silver, platinum, and palladium coins and bars are permissible in a Self-Directed IRA as long as certain standards are met. For coins, the metal fineness must be .9995 or greater. Bars must be produced by a refiner holding certain accreditations. For more details, consult the U.S. tax code or a tax professional.
Roth or Traditional?
A Self-Directed IRA may be set up as either Roth or Traditional. As with a standard IRA, it is up to you to decide whether you want to pay taxes on the money you place in your retirement account now (Roth), or when you retire (Traditional). Required Minimum Distributions (RMDs) for a Self-Directed IRA will depend on if it was set up as Roth or Traditional. Other rules such as prohibited transactions and distributions are the same as for a regular IRA.
American Bullion Self-Directed IRA
American Bullion specializes in converting your existing retirement account to a Self-Directed IRA capable of holding physical precious metals. If you are interested, call 1-800-326-9598 to speak with one of our knowledgeable IRA Processing Department members today.