Over the past year, the gold price has moved from roughly $1,400 an ounce to over $2,000 per ounce. Markets need time to rest or pullback after such a big move to provide strength for the next move up. As the gold price settles down waiting for the next stimulus package, it’s a great opportunity to think about taxes and preserving our retirement accounts.
A Traditional IRA can be transferred into a Traditional Gold IRA tax-free
Investors who are nervous holding overvalued paper assets in a Traditional IRA can transfer these paper assets into a gold-backed Traditional IRA. Those transferred assets can then be used to build a portfolio of IRA approved metals consisting of gold, silver, platinum, and/or palladium. Tangible assets have had a long track record of holding purchasing power as paper assets are devalued. An investor can then make a contribution to their Traditional IRA of $6,000 for 2020 ($7,000 if you are age 50 or older), which can be used to offset income on your taxes. Setup fees are reasonable considering you can transfer as much as you like from your already existing Traditional IRA. An insured Gold IRA has plenty of insurance to help investors sleep at night. With the US dollar expected to drop over the next few years with all of this money printing, a Traditional Gold IRA can help you put your mind at ease and has the potential to appreciate significantly.
A Gold IRA can be established by rolling over a 401(k), TSP, or 403(b)
If you have a 401(k) or similar type account and recently left your job or were laid off due to the corona virus crisis, you might be wondering what to do with your retirement investments. Even if you’ve left your employer some time ago, you have several options when it comes to finding the best place to rollover your 401(k). A previous employer’s retirement account can be rolled over tax-free into a Traditional Gold IRA. An investor can then make a contribution to their Traditional IRA of $6,000 for 2020 ($7,000 if you are age 50 or older), which can be used to offset income on your taxes. If you run an independent business and have established a solo 401(k), that’s another option for a rollover. These rolled over funds can then be used to build a portfolio of IRA approved metals consisting of gold, silver platinum and/or palladium. Gold has doubled in price every seven years since 1971. US debt has doubled every eight years since tricky Dick took us off the Gold Standard. With the printing presses running 24/7, who knows how high the price of gold maybe go down the road.
A SEP IRA or Roth IRA can be transferred into a Gold IRA
A SEP IRA can be established in physical gold by a transfer or a contribution. The contributions you make to each employee’s SEP-IRA each year cannot exceed the lesser of 1) 25% of compensation or 2) $57,000 for 2020. This contribution can be used to offset income on your taxes. IRS approved metals can then be used to build your SEP IRA or Roth IRA portfolio. An existing Roth IRA held for more than 5 years can also be transferred into a Gold IRA. Once metals are in the Roth IRA, they can be delivered to the investor without a distribution tax. This is a great way to stock up on your physical metals without having to use liquid funds in a checking, savings, or non-qualified account.
According to Egon von Greyerz of Matterhorn Asset Management,
“We are at the end of a major economic and social cycle. But cycles don’t end overnight if the world isn’t hit by a massive meteorite or nuclear bomb. Whether we are at the end of a 300-year cycle or a 2,000-year cycle, only future historians can tell the world. What is clear, at least to me, is that the end of this cycle started in 1971 when Nixon closed the gold window. Since then global debt has gone up exponentially and now we are in the very final stage of the cycle. This end of the end, that we are now in, was first evidenced by gold turning up at the beginning of this century. This significant trend change in gold that started 20 years ago was a clear indicator that we are now seeing the end of the fiat money system. Even though manipulated through a corrupt paper market, gold still reveals the deceitful actions of governments and central banks. There is no better evidence than the fall of fiat in this century.”
The next decade is about wealth preservation. Cheap, printed money over the last decade has provided more fuel for the fire. It’s a non-fixable debt situation where the only tool left for central bankers is to print money. This printed money isn’t being used for good organic growth of products. Money out of thin air is being used for stock buybacks, financial engineering, to support debt markets, and it’s being put on bankrupt bank’s balance sheets to make them look better. It’s up to you to diversify and preserve your wealth. The price of gold will always reflect the continued debasement of our paper currency. Call Midas Gold Group today at 480-360-3000 or 805-601-6000. You can trust Midas Gold Group, the nation’s #1 veteran-owned gold dealer. Midas Gold Group is endorsed by Sebastian Gorka of the America First Radio Show and Jennifer Horn of The Morning Answer with Brian and Jen on 870 AM radio. Call Midas Gold Group today at 480-360-3000 or 805-601-6000. Midas does business in all fifty states with two physical locations in Phoenix, AZ, and Thousand Oaks, CA. These physical locations are available for in-person consultation M–F 8 am–4 pm PST.