Baker’s Dozen Tax Time Alert: Take This 3 Minute IRA Crash Course and Jump Start Your Retirement

By Jon Swyers

Do you remember the riveting words of Sergeant Joe Friday, played by Jack Webb, in the iconic TV detective show Dragnet? They were, “Just the facts Ma'am. Just the facts.”

At ASI, we know facts can be hard to come by in a world where financial confusion reigns.

That’s why we offer a Baker’s Dozen of strategies, products and services and make sure you are on top of the facts you need to consider to Keep What’s Yours.

One of our Baker’s Dozen is the precious metals IRA… Did you know there was such a strategy? Well, there is, and we have been assisting clients in making it a reality since the IRS code allowed it 30 years ago!

*Please note, we are not tax advisors, financial planners or asset managers. Be sure to consult yours to verify ‘FACTS’ and other guidance offered below.

FACT #1. You MUST make your 2015 contribution by April 15, 2016, and you can also make your 2016 contribution at the same time, if you wish.

For each year, the total annual contributions to your Traditional and Roth IRAs combined cannot exceed: $5,500 if you are under age 50, or $6,500 for those ages 50 or older. Traditional IRA contributions are not limited by annual income, and are tax deductible for the year of the contribution.

FACT #2. Roth IRA contributions are after tax dollars, and there are limits and eligibility rules based on your modified adjusted gross income, which also vary depending on tax-filing status as follows:

2015 Roth Contribution Guidance

Source: fidelity.com

There are slight modifications for 2016, so check with your tax advisor.

FACT #3. Required Minimum Distribution (RMD)

Don't forget: The Traditional IRA is tax deferred, not tax exempt. When you reach April 1st immediately after you turn 70 1/2 years of age, you are forced to take distributions. At that point, funds in your traditional IRA must begin to be withdrawn, and ordinary income tax must be paid on the withdrawal.

How much is your RMD withdrawal? At 70 ½, the RMD is 3.65% of the prior December 31st TOTAL value of all your deferred accounts. As you go through your 70’s, the percentage you are forced to take out increases. For example, at 72 it's approximately 4.2%. When you're in your 80’s, it can be 6%. As you get older, you are forced to take out more money at unknown future tax rates.

Your ROTH contribution, so long as it is in your qualified account for 5 years or more, is distributed tax-free… including the growth. There is no RMD requirement. This is a good deal, if you can afford to pay taxes on current qualified holdings and convert to a ROTH, or make contributions without taking a deduction.

FACT #4. Good News: Precious Metals in Your IRA

The Internal Revenue Code allows IRAs to own certain gold, silver, platinum and palladium bullion (coins and bars) so long as they meet the LBMA minimum standards of fineness. In general, precious metal bullion and coins that are 99.9% pure or better are eligible for IRA investment, but we can help guide you when it comes time to make your purchase.

Precious metals are perfect for an IRA because they are for long term investing and so is your retirement plan.

But, you must have a self-directed account that follows carefully controlled IRS rules and restrictions.

ASI offers several programs, IRA storage choices and trustees/administrators, one of which is certain to be right for you. Call an ASI Preferred Client Relations representative to get the full realm of possibilities at 800-831-0007.

For example, simplify opening a self-directed IRA online through our ASI Precious Metals Direct Program. We will automatically store your precious metals in Salt Lake City or New York City. And, if you choose Gold Eagles, they can also be stored in Zürich. Yes, you can hold your IRA assets offshore!

Another great IRA alternative is the Perth Mint Certificate which can be placed in your existing self directed IRA if you have one. ASI has been working with several trustees/administrators for decades in this regard. Your gold, silver or platinum is held offshore in Perth, Western Australia and is guaranteed for safety by the Government of Western Australia and is fully insured at full market value at all times… at their expense.

Plus, when it comes to making your RMD, all you have to do is call ASI. We will be glad to help you liquidate properly for ease and convenience.

Send me an email, or call me today at 800-831-0007 to discuss your precious metals IRA options… another Baker’s Dozen strategy to help you Keep What’s Yours!