Menu Options Home Page Publisher's Notes Archives About Us News/Press Releases Links CoinStats Statehood Quarters Contact Us Link to Us Bullion Today E-Subscribe to News/Updates Enter your email address and press Go!		Put Precious Metals in your IRA Let the new tax laws work for you Individual Retirement Accounts (IRAs) and other self-directed retirement accounts are wonderful vehicles for building retirement assets. They are exempt from all capital gains taxes, which if your investments perform well over several decades can result in enormous savings. In addition, in a traditional IRA the money you invest is subtracted from your taxable income, although you pay income tax on withdrawals during retirement. In a Roth IRA, you pay with after-tax income, but that's the last tax you'll ever pay on those funds. Most assets held in retirement accounts are in the form of cash, stocks, and bonds; historically there have been legal restrictions on placing tangible assets such as precious metals in these accounts. Proof American Eagles became acceptable for IRAs in 1986 legislation championed by the Industry Council on Tangible Assets (ICTA). Over a decade later, also largely as a result of ICTA's efforts, the Taxpayer Relief Act of 1997 opened the way for including a wider range of bullion coins and precious metals in IRAs. Tangible assets must be physically placed in a retirement account. Retirement account holders are ultimately responsible for making lawful deposits, and should therefore check with their tax professionals. As a guideline, Republic National Bank (one of the few depositories for tangible retirement assets) stores IRA deposits of the following types: Gold .9167 fine gold American Eagle bullion coins, including Proof versions minimum .9950 fine gold legal tender bullion coins: Australian Kangaroo and Nugget, Austrian Philharmonic, and Canadian Maple Leaf minimum .9950 fine gold bars, fabricated by refiners approved by The Commodities Exchange (COMEX) Silver .9993 fine silver American Eagle bullion coins, including Proof versions minimum .9990 fine silver legal tender bullion coins: Australian Kookaburra, Canadian Maple Leaf, and Mexican Libertad minimum .9990 fine silver bars, fabricated by refiners approved by COMEX Platinum .9995 fine platinum American Eagle bullion coins, including Proof versions minimum .9995 fine platinum legal tender bullion coins: Australian Koala, Canadian Maple Leaf, Isle of Man Cat, and Isle of Man Noble minimum .9995 fine platinum bars, fabricated by refiners approved by The New York Mercantile Exchange (NYMEX) Palladium minimum .9995 fine palladium bars, fabricated by refiners approved by NYMEX no palladium coins are accepted Planning for the long haul To get an idea of what can happen over a period of 10, 20, 30, or 40 years, look back that far into the past. Wars. Inflation. Recession. Oil embargoes. Stock market corrections. Diversifying your retirement portfolio with precious metals can be an insurance policy against such events, and could yield large profits in a variety of circumstances. Is now a good time to invest in precious metals for the long haul? Gold and silver prices are near historic lows. Gold at or under $300 is considered a bargain by many precious metal traders; lately it's been hovering around $280. Silver reached a 10-year high of $7.81 in 1998, now it's back down to $5.10. Platinum was as high as $432 in 1998, now it's at $369. [All prices as of March 29, 1999.] Balance your investments Once you decide that you want to include precious metals in your retirement planning, determine how much you want to invest. How much depends on your annual contribution and your personal goals and investment philosophy. Factors to consider are your age, total assets, and risk tolerance. Few institutions are set up to handle the precious metals component of retirement plans. One of the leaders in the field is American Church Trust Company (ACT), in Houston. No, this is not a religious organization. The name refers to its initial establishment as trustee, registrar and transfer agent for over 700 churches. The company handles all of the paperwork. They are not coin dealers, but they will act in concert with a dealer who buys and sells precious metal coins and bullion on your instructions. What are the costs? The price of the precious metal itself, plus small fees to open and service the account, and an annual storage fee. It's easy to create a precious metals IRA (which can contain other investments as well). Contact your precious metals professional or call Laurie Berman at Coin Connoisseur (888-264-2624). You can start from scratch or roll over an existing IRA. Again, consult your tax professional.   The Tax Payer Relief Act... The Tax Payer Relief Act of 1997 opened the way for including a wider range of bullion coins and precious metals in IRAs.
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