WEBVTT 00:00:00.000 --> 00:00:02.640 Welcome to the Deep Dive. Today we're jumping 00:00:02.640 --> 00:00:05.480 into gold IRA rollovers. It's something a lot 00:00:05.480 --> 00:00:07.719 of folks look at, you know, to add a buffer to 00:00:07.719 --> 00:00:09.880 retirement savings, especially with economic 00:00:09.880 --> 00:00:12.419 uncertainty. That's right. And holding physical 00:00:12.419 --> 00:00:15.140 gold, it definitely has an appeal. But the key 00:00:15.140 --> 00:00:18.120 really is getting the IRS rules right. Exactly. 00:00:18.179 --> 00:00:21.449 It can get... A bit complicated navigating the 00:00:21.449 --> 00:00:23.769 specific tax regulations for these accounts. 00:00:24.570 --> 00:00:26.210 Absolutely. So our mission today is to unpack 00:00:26.210 --> 00:00:28.230 those regulations. We're drawing on a detailed 00:00:28.230 --> 00:00:30.550 article that lays out the essentials, trying 00:00:30.550 --> 00:00:33.310 to make it clear. Good. So think of this as, 00:00:33.310 --> 00:00:36.310 well, your guide to the crucial rules. We want 00:00:36.310 --> 00:00:38.329 to help you understand how to avoid penalties 00:00:38.329 --> 00:00:41.509 and make informed choices for your future. So 00:00:41.509 --> 00:00:44.659 when we talk IRS rules for goal IRAs, Are we 00:00:44.659 --> 00:00:46.719 mainly looking at tax stuff, retirement account 00:00:46.719 --> 00:00:49.200 rules? Where do we start? Yeah, good question. 00:00:49.399 --> 00:00:51.859 We are mostly focused on the IRS tax code and 00:00:51.859 --> 00:00:53.899 the regulations around retirement accounts, but 00:00:53.899 --> 00:00:56.579 specifically how they apply to holding actual 00:00:56.579 --> 00:00:58.700 physical precious metals. Okay. And maybe the 00:00:58.700 --> 00:01:01.719 best place to start is what kind of metals actually 00:01:01.719 --> 00:01:04.180 qualify, because the IRS is strict here. Right, 00:01:04.280 --> 00:01:07.099 it's not just any gold. Not at all. There are 00:01:07.099 --> 00:01:09.959 purity standards. Okay, so what are they? How 00:01:09.959 --> 00:01:12.069 pure are we talking? For gold, it needs to be 00:01:12.069 --> 00:01:16.530 at least 99 .5 % pure. 99 .5%. Silver is even 00:01:16.530 --> 00:01:20.530 higher, 99 .9%. And then for platinum and palladium, 00:01:20.950 --> 00:01:25.930 it's 99 .95 % purity. Why so specific? I mean, 00:01:25.969 --> 00:01:28.450 why those exact numbers? Well, it's really about 00:01:28.450 --> 00:01:30.890 ensuring the value, the quality of what's in 00:01:30.890 --> 00:01:33.329 your IRA. Ah, OK. It guarantees you're holding 00:01:33.329 --> 00:01:35.489 the real deal, basically. Protects the investment 00:01:35.489 --> 00:01:38.969 against less pure metals or alloys. Makes sense. 00:01:39.530 --> 00:01:42.109 So you find your IRS approved gold. What's the 00:01:42.109 --> 00:01:44.769 next big rule to watch out for in the rollover 00:01:44.769 --> 00:01:46.950 itself? OK, so the metal purity is step one. 00:01:47.329 --> 00:01:49.170 Then you've got the process of actually moving 00:01:49.170 --> 00:01:51.329 funds or assets. Right. And here's one that trips 00:01:51.329 --> 00:01:54.120 people up sometimes. The one rollover per year 00:01:54.120 --> 00:01:56.659 rule. One per year. Okay. Now does that apply 00:01:56.659 --> 00:01:59.180 across all my retirement accounts or is it per 00:01:59.180 --> 00:02:01.340 account? That's a really key distinction. It 00:02:01.340 --> 00:02:04.280 applies per IRA. Oh wait. So you could rollover 00:02:04.280 --> 00:02:07.340 a traditional IRA once and also rollover a Roth 00:02:07.340 --> 00:02:10.300 IRA once in the same year. Got it. But you can't 00:02:10.300 --> 00:02:13.000 rollover the same traditional IRA twice within 00:02:13.000 --> 00:02:15.710 a 12 -month period. Right. So if I do one in 00:02:15.710 --> 00:02:18.449 June, I have to wait until next June for that 00:02:18.449 --> 00:02:21.330 specific account. Exactly. And this applies whether 00:02:21.330 --> 00:02:23.770 it's a direct rollover or an indirect one. OK. 00:02:24.050 --> 00:02:26.169 What if someone messes that up? What are the 00:02:26.169 --> 00:02:27.729 consequences? It's probably not just a warning. 00:02:28.129 --> 00:02:30.430 No, definitely not. The IRS consequences can 00:02:30.430 --> 00:02:32.990 be pretty serious. If you violate that rule, 00:02:33.270 --> 00:02:35.710 that second rollover, it usually gets treated 00:02:35.710 --> 00:02:39.180 as a taxable distribution. Ouch. Meaning income 00:02:39.180 --> 00:02:42.000 tax on the whole amount. Yes, income tax. And 00:02:42.000 --> 00:02:44.400 if you're under 59 and a half, you could also 00:02:44.400 --> 00:02:46.840 get hit with the early withdrawal penalty. Double 00:02:46.840 --> 00:02:49.379 whammy. Yeah. Which leads us nicely into that 00:02:49.379 --> 00:02:52.939 other big timing rule, the 60 day one for indirect 00:02:52.939 --> 00:02:56.240 rollovers. Ah yes, the 60 day rule. Remind us 00:02:56.240 --> 00:02:59.360 how that works. Sounds critical. It is. So an 00:02:59.360 --> 00:03:01.539 indirect rollover is when you actually take the 00:03:01.539 --> 00:03:04.180 money out of your current IRA first. You receive 00:03:04.180 --> 00:03:06.379 the funds. OK, you get a check. Maybe. Right. 00:03:06.500 --> 00:03:08.539 And from the day you receive those funds, the 00:03:08.539 --> 00:03:11.860 clock starts ticking. You have exactly 60 days 00:03:11.860 --> 00:03:14.419 to deposit that same amount into your new gold 00:03:14.419 --> 00:03:18.259 IRA. 60 days? That sounds tight. It can be. And 00:03:18.259 --> 00:03:21.000 if you miss that deadline, even by a day. Then 00:03:21.000 --> 00:03:23.120 what? Then the IRS considers that money you took 00:03:23.120 --> 00:03:26.060 out to be a taxable distribution. Full stop. 00:03:26.169 --> 00:03:29.370 Wow. So again, income taxes and potentially that 00:03:29.370 --> 00:03:31.689 early withdrawal penalty if you're under 59 and 00:03:31.689 --> 00:03:34.449 a half. Exactly. It really highlights why direct 00:03:34.449 --> 00:03:36.169 rollovers where the money goes straight from 00:03:36.169 --> 00:03:38.349 custodian to custodian are often much simpler 00:03:38.349 --> 00:03:42.009 and safer. Less room for error. Definitely. Now, 00:03:42.210 --> 00:03:44.270 with all this money moving around, the IRS must 00:03:44.270 --> 00:03:47.250 want records, right? Paperwork. Oh, absolutely. 00:03:47.729 --> 00:03:50.550 Documentation is key for compliance. There are 00:03:50.550 --> 00:03:53.310 two main forms you'll see in a gold IRA rollover. 00:03:53.430 --> 00:03:57.300 OK, what are they? Form 1099R and form 5498. 00:03:57.979 --> 00:04:01.620 1099R and 5498, what do they track? So the 1099R 00:04:01.620 --> 00:04:04.080 reports the distribution, the money coming out 00:04:04.080 --> 00:04:07.280 of your old IRA. OK. And the 5498 reports the 00:04:07.280 --> 00:04:09.659 contribution, the money going into your new gold 00:04:09.659 --> 00:04:11.879 IRA. Got it. Creates a paper trail for the IRS. 00:04:12.300 --> 00:04:14.520 Precisely. Shows the money moved correctly as 00:04:14.520 --> 00:04:16.980 a rollover, not a taxable event. And it's usually 00:04:16.980 --> 00:04:19.019 the custodians, the financial institutions, who 00:04:19.019 --> 00:04:21.519 handle sending these forms. Right, the institutions. 00:04:21.680 --> 00:04:24.740 We hear about gold IRA companies and custodians. 00:04:25.079 --> 00:04:27.339 Are they the same? Good question. No, they play 00:04:27.339 --> 00:04:29.480 distinct roles, though they work together. How 00:04:29.480 --> 00:04:34.060 so? Think of the gold IRA company as more of 00:04:34.060 --> 00:04:36.480 a facilitator. They often help you set up the 00:04:36.480 --> 00:04:39.660 account, maybe help you choose the medals, coordinate 00:04:39.660 --> 00:04:43.100 the OK, like a guide. Yeah. But the custodian 00:04:43.100 --> 00:04:46.459 is the actual IRS -approved financial institution 00:04:46.459 --> 00:04:48.779 that holds your assets. They manage the account, 00:04:48.939 --> 00:04:51.100 handle the transactions, and arrange for the 00:04:51.100 --> 00:04:53.480 storage of the physical metals. Ah, the custodian 00:04:53.480 --> 00:04:55.360 is the one actually holding the gold, in a sense. 00:04:55.639 --> 00:04:58.459 Exactly. They're the official keeper of the assets, 00:04:58.519 --> 00:05:01.519 according to the IRS. So when you're choosing 00:05:01.519 --> 00:05:03.860 who to work with, what should you look for in 00:05:03.860 --> 00:05:06.220 both the company and the custodian? Seems important. 00:05:06.329 --> 00:05:08.649 Very important. You definitely want experience 00:05:08.649 --> 00:05:11.509 specifically with Gold IRAs. It's a niche area. 00:05:11.649 --> 00:05:14.110 Makes sense. Look for transparency in fees. Get 00:05:14.110 --> 00:05:17.449 a clear breakdown set up fees, annual fees, storage 00:05:17.449 --> 00:05:20.629 costs, transaction costs, all of it. No surprises. 00:05:21.189 --> 00:05:24.029 Right. And check reviews, ratings. See what other 00:05:24.029 --> 00:05:25.970 customers say. For the custodian especially, 00:05:26.009 --> 00:05:28.870 make sure they offer secure IRS approved storage. 00:05:28.949 --> 00:05:31.009 That's non -negotiable. Secure storage. Yeah, 00:05:31.009 --> 00:05:33.550 you mentioned that. Yeah. Because you can't just 00:05:33.550 --> 00:05:36.089 stash the IRA gold in your basement safe, can 00:05:36.089 --> 00:05:38.649 you? Definitely not. That's a huge IRS no -no. 00:05:39.089 --> 00:05:41.829 The metals must be held in an IRS approved depository. 00:05:41.870 --> 00:05:44.829 Okay. Which brings us back to moving the funds. 00:05:45.009 --> 00:05:47.930 We touched on direct versus indirect rollovers. 00:05:48.009 --> 00:05:50.209 Can we clarify the mechanics? Yes, please. Let's 00:05:50.209 --> 00:05:52.970 make that crystal clear. Okay. A direct rollover. 00:05:53.569 --> 00:05:56.569 Money moves straight from your old IRA custodian 00:05:56.569 --> 00:05:59.370 to your new gold IRA custodian. You never touch 00:05:59.370 --> 00:06:01.509 the money yourself. Correct. It bypasses you 00:06:01.509 --> 00:06:04.089 completely. This is generally the simplest, safest 00:06:04.089 --> 00:06:07.149 route. It avoids that whole 60 -day deadline 00:06:07.149 --> 00:06:09.370 risk we talked about. Got it. Less chance of 00:06:09.370 --> 00:06:11.670 accidentally triggering taxes. Exactly. Now, 00:06:11.829 --> 00:06:13.670 an indirect rollover, as we said, is where you 00:06:13.670 --> 00:06:15.410 take the distribution first. You get the money. 00:06:15.490 --> 00:06:18.519 And the 60 -day clock starts. Right. Then you 00:06:18.519 --> 00:06:20.779 are responsible for depositing it into the gold 00:06:20.779 --> 00:06:23.120 IRA within that window. It just carries more 00:06:23.120 --> 00:06:25.459 risk. If anything goes wrong, if you miss the 00:06:25.459 --> 00:06:27.879 deadline. Taxable event. Taxable event. Yeah. 00:06:28.060 --> 00:06:31.279 Potential penalties. So, yeah, direct is usually 00:06:31.279 --> 00:06:33.740 preferred. OK, direct sounds much better. So 00:06:33.740 --> 00:06:36.319 let's say the funds are successfully rolled over 00:06:36.319 --> 00:06:39.980 directly into the new gold IRA custodian account. 00:06:40.079 --> 00:06:42.720 Yeah. How does the actual gold get purchased? 00:06:42.970 --> 00:06:46.329 Good question. So the next step is buying those 00:06:46.329 --> 00:06:48.949 IRS approved metals we discussed earlier, the 00:06:48.949 --> 00:06:51.490 ones meeting the purity standards. Right. Typically, 00:06:51.629 --> 00:06:54.449 your goal IRA company helps facilitate this. 00:06:54.910 --> 00:06:57.329 They'll work with dealers to purchase the specific 00:06:57.329 --> 00:07:00.709 coins or bars on behalf of your IRA using the 00:07:00.709 --> 00:07:02.930 funds in your custodian account. So I don't go 00:07:02.930 --> 00:07:05.269 pick out the coins myself at a shop? No, generally 00:07:05.269 --> 00:07:07.230 not. It has to be done through the IRA structure 00:07:07.230 --> 00:07:09.310 to ensure compliance, make sure the metals are 00:07:09.310 --> 00:07:11.790 eligible, and maintain that chain of custody. 00:07:12.269 --> 00:07:14.509 Once the metals are bought, they have to be sent 00:07:14.509 --> 00:07:17.129 directly to one of those IRS approved depositories 00:07:17.129 --> 00:07:20.290 for storage. Not to my house, not to my local 00:07:20.290 --> 00:07:23.709 bank safe deposit box. Correct. They must go 00:07:23.709 --> 00:07:26.610 to a specialized high security facility that 00:07:26.610 --> 00:07:29.370 meets IRS standards. And the custodian arranges 00:07:29.370 --> 00:07:32.209 that? Yes. The custodian coordinates the shipment 00:07:32.209 --> 00:07:35.670 and storage with the chosen depository. You usually 00:07:35.670 --> 00:07:38.269 have choices like maybe commingled storage where 00:07:38.269 --> 00:07:40.470 your metals are stored alongside others. Okay. 00:07:40.610 --> 00:07:43.519 Or segregate. storage where your specific coins 00:07:43.519 --> 00:07:46.680 or bars are kept separate. Interesting options. 00:07:47.240 --> 00:07:49.980 What makes these places IRS approved. What kind 00:07:49.980 --> 00:07:51.959 of security are we talking about? I think very 00:07:51.959 --> 00:07:55.439 high security. We're talking 247 surveillance, 00:07:55.639 --> 00:07:58.600 armed guards, advanced alarm systems, secure 00:07:58.600 --> 00:08:01.459 vaults. These places are built to protect high 00:08:01.459 --> 00:08:03.899 value assets. Sounds like Fort Knox. Pretty close. 00:08:04.000 --> 00:08:06.639 The idea is maximum security for your retirement 00:08:06.639 --> 00:08:09.079 savings. Definitely reassuring. OK, so we've 00:08:09.079 --> 00:08:11.000 rolled over, bought the metal, it's stored securely. 00:08:11.459 --> 00:08:13.819 What are the common mistakes people make after 00:08:13.819 --> 00:08:15.860 setting up the gold IRA? Things that get them 00:08:15.860 --> 00:08:18.259 into trouble with the IRS? Ah, yes. Prohibited 00:08:18.259 --> 00:08:20.519 transactions are a big one. Prohibited transactions? 00:08:20.740 --> 00:08:22.920 Like what? A classic example is trying to use 00:08:22.920 --> 00:08:25.879 your IRA gold as collateral for a loan. Oh, definitely 00:08:25.879 --> 00:08:29.019 don't do that. Absolutely not. The IRS is crystal 00:08:29.019 --> 00:08:32.440 clear that's prohibited. Doing so can disqualify 00:08:32.440 --> 00:08:35.200 the entire IRA. Meaning? Meaning it's treated 00:08:35.200 --> 00:08:37.700 as if you took all the money out that year. Huge 00:08:37.700 --> 00:08:40.840 tax bill plus penalties likely. It's a catastrophic 00:08:40.840 --> 00:08:43.769 error. Wow. Okay. Note taken. What else? Another 00:08:43.769 --> 00:08:45.990 mistake is buying the medals from what the IRS 00:08:45.990 --> 00:08:49.090 calls disqualified persons. Disqualified persons? 00:08:49.110 --> 00:08:51.190 Who's that? Dinnerly includes yourself, your 00:08:51.190 --> 00:08:54.009 spouse, your kids, parents, fiduciaries to the 00:08:54.009 --> 00:08:56.889 IRA. Basically, close relatives or people already 00:08:56.889 --> 00:08:58.710 involved with the account. So no buying gold 00:08:58.710 --> 00:09:01.750 from your brother for your IRA. Exactly. Transactions 00:09:01.750 --> 00:09:04.370 need to be arm's length through reputable dealers, 00:09:04.490 --> 00:09:06.649 usually coordinated by the girled IRA company. 00:09:06.789 --> 00:09:08.850 Keeps everything above board. Right. Maintain 00:09:08.850 --> 00:09:12.019 that separation. Okay. Fast forward, it's retirement 00:09:12.019 --> 00:09:15.919 time. How do distributions work with a gold IRA? 00:09:16.500 --> 00:09:18.820 They work very similarly to traditional IRAs. 00:09:18.940 --> 00:09:21.899 You'll eventually have required minimum distributions, 00:09:22.179 --> 00:09:25.059 RMDs. RMDs. Those now start at age 73, right? 00:09:25.159 --> 00:09:26.659 That's correct. The age was recently changed 00:09:26.659 --> 00:09:30.259 for 2024 and onwards. It's 73 now. And failing 00:09:30.259 --> 00:09:32.860 to take your RMDs on time results in pretty stiff 00:09:32.860 --> 00:09:36.059 penalties. OK. What if someone wants the actual 00:09:36.059 --> 00:09:39.200 gold? Not cash. When they take a distribution, 00:09:39.340 --> 00:09:41.600 can they take the physical metal? Yes, you can. 00:09:41.720 --> 00:09:44.220 You can take an in -kind distribution of the 00:09:44.220 --> 00:09:47.090 physical gold or silver. Ah! But, and this is 00:09:47.090 --> 00:09:49.490 crucial, it's still treated as a taxable distribution. 00:09:49.649 --> 00:09:52.129 How does that work? The IRS basically views it 00:09:52.129 --> 00:09:54.870 as if the IRA sold the metal for its fair market 00:09:54.870 --> 00:09:57.669 value and then distributed that cash value to 00:09:57.669 --> 00:10:00.009 you. So you owe income tax on the value of the 00:10:00.009 --> 00:10:02.110 metal you receive. OK, so getting the physical 00:10:02.110 --> 00:10:04.549 gold doesn't avoid the taxes. Not at all. And 00:10:04.549 --> 00:10:06.909 again, if you take it out before age 59 and a 00:10:06.909 --> 00:10:08.850 half, you're likely looking at an early withdrawal 00:10:08.850 --> 00:10:11.649 penalty on top of the income tax. Got it. Tax 00:10:11.649 --> 00:10:14.289 implications are always there. We mentioned collateral 00:10:14.289 --> 00:10:16.950 and disqualified persons as prohibited transactions. 00:10:17.549 --> 00:10:20.049 Are there other general things to avoid? The 00:10:20.049 --> 00:10:23.490 big overriding principle is don't use your IRA 00:10:23.490 --> 00:10:25.710 assets for your personal benefit while they're 00:10:25.710 --> 00:10:28.470 in the IRA. OK. Like what? Like storing the gold 00:10:28.470 --> 00:10:31.629 at home. That's a definite no. Or wearing IRA 00:10:31.629 --> 00:10:34.049 -owned jewelry if such a thing were even allowed, 00:10:34.210 --> 00:10:37.450 which it generally isn't. Any personal use. So 00:10:37.450 --> 00:10:40.490 hands off until distribution. Absolutely. The 00:10:40.490 --> 00:10:43.409 IRS regulations state that engaging in any prohibited 00:10:43.409 --> 00:10:46.210 transaction can cause the entire IRA to be treated 00:10:46.210 --> 00:10:49.309 as distributed. Taxes, penalties, the works. 00:10:49.750 --> 00:10:52.690 The assets must stay within that custodial environment. 00:10:52.950 --> 00:10:56.000 Keep it clean. Now, unfortunately with popularity 00:10:56.000 --> 00:10:59.919 comes scams. What red flags should people watch 00:10:59.919 --> 00:11:02.519 for with gold IRAs? Yeah, sadly that's true. 00:11:02.639 --> 00:11:04.620 You need to be really wary. High pressure sales 00:11:04.620 --> 00:11:07.159 tactics are a huge red flag. Invest now or miss 00:11:07.159 --> 00:11:09.940 out kind of thing. Exactly. Or unsolicited calls 00:11:09.940 --> 00:11:13.450 or emails. Promises of guaranteed high returns. 00:11:13.850 --> 00:11:16.009 Precious metals markets fluctuate. Guarantees 00:11:16.009 --> 00:11:17.950 are basically impossible and a sign of trouble. 00:11:18.090 --> 00:11:20.730 Too good to be true. Usually is. Do your research. 00:11:21.230 --> 00:11:23.929 Verify the company and custodian. Check reviews 00:11:23.929 --> 00:11:25.990 on independent sites. Look for complaints with 00:11:25.990 --> 00:11:28.169 the Better Business Bureau or state regulators. 00:11:28.409 --> 00:11:30.450 Due diligence is key. And seriously consider 00:11:30.450 --> 00:11:33.389 talking to a trusted independent financial advisor 00:11:33.389 --> 00:11:36.590 before making any big moves. Get objective advice. 00:11:36.809 --> 00:11:39.129 Sound advice. So if you've done the research, 00:11:39.330 --> 00:11:41.110 what are the top things to look for when choosing 00:11:41.110 --> 00:11:44.029 a good gold IRA company. Experience, definitely. 00:11:44.610 --> 00:11:47.389 How long have they been specifically doing gold 00:11:47.389 --> 00:11:50.450 IRAs? Look for a solid track record. Makes sense. 00:11:50.850 --> 00:11:53.230 Customer reviews, like we said, what are actual 00:11:53.230 --> 00:11:56.940 clients saying, and fee transparency. Again, 00:11:57.200 --> 00:11:59.659 get everything in writing set up, annual admin, 00:11:59.820 --> 00:12:03.240 storage, buy -sell spreads, compare costs between 00:12:03.240 --> 00:12:05.659 companies. Right. Our source article probably 00:12:05.659 --> 00:12:08.019 mentions resources for comparing providers, too. 00:12:08.500 --> 00:12:10.600 Yes. Often, articles like the one we're drawing 00:12:10.600 --> 00:12:12.960 from will point you towards comparative reviews 00:12:12.960 --> 00:12:16.320 or lists of established providers. That can be 00:12:16.320 --> 00:12:18.879 a helpful starting point. Good. Okay, we talked 00:12:18.879 --> 00:12:21.379 about storage needing to be in approved depositories. 00:12:21.620 --> 00:12:23.740 Any more details on those storage regulations? 00:12:24.299 --> 00:12:26.960 Well, just to reiterate, the custodian must arrange 00:12:26.960 --> 00:12:29.600 and manage the storage. You don't do it yourself. 00:12:29.720 --> 00:12:32.179 Right. And these places, besides the heavy physical 00:12:32.179 --> 00:12:35.179 security, should absolutely have insurance covering 00:12:35.179 --> 00:12:37.559 the full value of the metals they hold. Insurance 00:12:37.559 --> 00:12:39.980 is critical. Definitely. And look for custodians 00:12:39.980 --> 00:12:42.600 and depositories that undergo regular independent 00:12:42.600 --> 00:12:44.960 audits that verifies their holdings and their 00:12:44.960 --> 00:12:47.100 procedures, adding another layer of security 00:12:47.100 --> 00:12:50.980 and accountability. OK, audits, insurance, security, 00:12:51.519 --> 00:12:53.600 a whole system. Now, what about putting money 00:12:53.600 --> 00:12:56.019 in? Are there limits like with a regular IRA? 00:12:56.340 --> 00:12:58.960 Yes. Gold IRAs follow the same annual contribution 00:12:58.960 --> 00:13:01.440 limits as traditional and Roth IRAs. And for 00:13:01.440 --> 00:13:05.620 2025, those are? For 2025, it's $7 ,000 if you're 00:13:05.620 --> 00:13:09.240 under 50. OK. And $8 ,000 if you're 50 or older, 00:13:09.500 --> 00:13:11.320 thanks to the catch -up contribution. Got it. 00:13:11.519 --> 00:13:14.120 Same limits, just a different type of asset inside. 00:13:14.440 --> 00:13:16.399 What if you put in too much by mistake? That's 00:13:16.399 --> 00:13:19.320 an overcontribution, and there's a penalty. A 00:13:19.320 --> 00:13:22.679 6 % excise tax on the excess amount. Per year? 00:13:22.879 --> 00:13:25.279 Yes. For each year, the excess contribution stays 00:13:25.279 --> 00:13:26.600 in the account. So you definitely want to track 00:13:26.600 --> 00:13:28.120 your contributions and then stay within the limit. 00:13:28.200 --> 00:13:30.919 So 6 % adds up fast. OK, let's quickly hit a 00:13:30.919 --> 00:13:33.379 few common questions to wrap things up. First, 00:13:33.580 --> 00:13:36.299 just simply, what's an IRS -approved precious 00:13:36.299 --> 00:13:39.720 metal again? Simply put, it's gold. silver, platinum, 00:13:39.899 --> 00:13:42.000 or palladium that meets those minimum purity 00:13:42.000 --> 00:13:45.659 requirements set by the IRS. 99 .5 % for gold, 00:13:46.139 --> 00:13:49.860 99 .9 % for silver, 99 .95 % for platinum and 00:13:49.860 --> 00:13:52.039 palladium. Perfect. And if someone's overwhelmed 00:13:52.039 --> 00:13:54.279 choosing a company, where did our source suggest 00:13:54.279 --> 00:13:56.429 looking? The source likely suggests checking 00:13:56.429 --> 00:13:58.970 out comparative reviews and guides, perhaps on 00:13:58.970 --> 00:14:01.289 reputable financial websites or publications, 00:14:01.809 --> 00:14:04.289 to help evaluate different gold IRA companies 00:14:04.289 --> 00:14:07.309 based on fees, services, and reputation. Good 00:14:07.309 --> 00:14:09.470 starting point. And finally, taking physical 00:14:09.470 --> 00:14:12.200 possession, the bottom line. Bottom line. You 00:14:12.200 --> 00:14:14.299 cannot take physical possession while the metal 00:14:14.299 --> 00:14:17.539 is officially in the IRA without it being a taxable 00:14:17.539 --> 00:14:20.419 event. You can take physical possession as a 00:14:20.419 --> 00:14:23.539 distribution, usually after 59 and a half, but 00:14:23.539 --> 00:14:26.120 it will be taxed as income based on its value 00:14:26.120 --> 00:14:29.240 at that time. Got it. Taxable event either way 00:14:29.240 --> 00:14:31.539 if you take it out physically. OK, this has been 00:14:31.539 --> 00:14:34.419 a really thorough deep dive. We've covered, well, 00:14:34.480 --> 00:14:36.000 pretty much everything from purity standards, 00:14:36.139 --> 00:14:38.059 the rollover rules, like the one per year and 00:14:38.059 --> 00:14:40.259 the 60 -day limit. Uh -huh. And the reporting 00:14:40.259 --> 00:14:43.620 forms, 1099 Tech and Fully 498, the rules of 00:14:43.620 --> 00:14:45.919 the gold IRA companies versus the custodians. 00:14:46.080 --> 00:14:47.879 Right. The storage requirements in those secured 00:14:47.879 --> 00:14:49.919 depositories, the purchasing process. And importantly, 00:14:50.080 --> 00:14:52.440 those common mistakes, prohibited transactions 00:14:52.440 --> 00:14:55.620 like using gold as collateral, dealing with disqualified 00:14:55.620 --> 00:14:58.539 persons, avoiding scams, and the distribution 00:14:58.539 --> 00:15:02.659 rules, RMDs. Contribution limits, yeah, a lot 00:15:02.659 --> 00:15:04.879 to keep track of. It really is. But understanding 00:15:04.879 --> 00:15:07.519 these IRS rules is just fundamental if you want 00:15:07.519 --> 00:15:10.759 a compliant gold IRA. Avoiding penalties, choosing 00:15:10.759 --> 00:15:13.039 good partners, it all comes down to knowing these 00:15:13.039 --> 00:15:15.799 details. Absolutely. So here's something to think 00:15:15.799 --> 00:15:18.600 about as we finish. All these rules, they represent 00:15:18.600 --> 00:15:22.039 this balance, right? between your freedom to 00:15:22.039 --> 00:15:24.059 invest your retirement funds as you see fit, 00:15:24.340 --> 00:15:26.720 and the government's need to, well, ensure the 00:15:26.720 --> 00:15:29.779 system works, protect tax revenue, and safeguard 00:15:29.779 --> 00:15:31.720 savings. That's a great way to put it. It's a 00:15:31.720 --> 00:15:34.120 constant balancing act. So as you, the listener, 00:15:34.360 --> 00:15:36.279 think about your own retirement plans. Maybe 00:15:36.279 --> 00:15:38.460 reflect on which part of these gold IRA rules 00:15:38.460 --> 00:15:41.000 feels most significant or impactful to you. Is 00:15:41.000 --> 00:15:44.480 it the purity? The storage? The transaction rules? 00:15:44.759 --> 00:15:46.659 Definitely something to mull over. Thanks for 00:15:46.659 --> 00:15:47.740 joining us for this Deep Dive.