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Learn the Gold IRA Tax Rules Updates in 2023

Do you own a self-directed gold IRA as part of your retirement portfolio? These accounts offer many benefits when it comes to taking more control over your financial future, and you may already know the guidelines. But if you missed the IRS announcement about the latest updates to gold IRAs for 2023, keep reading to learn what’s changed.

Gold IRA rules in 2023: what you need to know

The IRS rules regarding gold IRAs have changed again. It can be hard to keep up with the new limits and regulations, but knowing what’s changed can help you continue to get the most out of your retirement portfolio. In this post, we explore what changes have been made and how they may affect your retirement portfolio moving forward.

What changes will happen to gold IRAs in 2023?

The IRS has listed a number of changes happening to IRAs and Roth IRAs that will also affect gold IRAs. Here are the most significant changes to keep in mind.

What is the maximum limit on annual contributions to a gold IRA in 2023?

The limit on annual contributions for a traditional IRA in 2022 was $6,000. In 2023, this will increase to $6,500, an 8% rise reflecting a cost-of-living increase.

Did the precious metals IRA contribution limit for individuals over age 50 change?

If you were 50 years of age or older by December 31, 2022, you would have been able to contribute up to $6,500 to your IRA, $500 more than the standard amount. This extra $500 limit has also remained for 2023, with over 50s thus being able to contribute up to $7,000.

What are the tax implications of these gold IRA rules changing in 2023?

If you’re married and not covered by a retirement plan from your employer, you can deduct the full amount of your contribution from your taxes. You read that right: If you do not have a 401(k) plan through your workplace, you’ll be able to deduct everything you contribute to a traditional IRA in 2023. If your retirement plan is covered by your employer, however, IRA tax deductions may be limited because they’ll be based on your modified adjusted gross income.

Are there any rule changes for withdrawing from my gold IRA in 2023?

As of this publishing date, there are no changes to withdrawals from gold IRAs in 2023. However, if you’re not already familiar with the withdrawal rules for gold IRAs, read on to learn what you need to know.

Can you withdraw from a gold IRA without a penalty?

If you are under 59½, withdrawals from your gold IRA will be considered premature or early. The current early withdrawal penalty is 10% unless you have an exemption. Keep in mind that you may also have to pay an additional tax on any earnings from early withdrawals.

General Rules and Processes for Gold IRAs

Asset transfers from regular IRAs to a precious metals IRA

To transfer assets from an existing traditional or Roth IRA account into a gold or precious metals IRA, you’ll need your current custodian to complete the transfer to your new custodian. Note that a transfer is different from a rollover. If you have questions on any aspects related to opening gold IRAs or rolling over funds, speak to your U.S. Money Reserve IRA Account Executive.

Gold IRA rollover

What is a gold IRA rollover?

A gold IRA rollover is when you move your current retirement account or 401(k) to an IRA account containing gold and/or other precious metals. It’s referred to as a rollover because you are moving funds to a different type of account, as opposed to a transfer, which would be moving the contents of one IRA account to another IRA. Rollovers are becoming a popular choice for individuals trying to diversify their retirement funds. You can choose to roll over all or part of your funds into your self-directed gold IRA.

How does a gold IRA rollover work?

If you want to transfer funds from a traditional or Roth IRA into a gold IRA, you can easily do so. The IRA rollover transaction will be completed by the new custodian of the gold IRA account. If you’re trying to roll over a 401(k) account from your current employer into a gold IRA account, this might not be so easy. You may only be able to do so if you are leaving the company where you have your 401(k). Whatever your situation, it’s always best to check with your employer.

Physical gold through a custodian

Gold IRA custodians can transfer funds to another custodian, deposit funds into a new IRA, or roll over accounts. You can’t add gold you already own into a gold IRA. However, you can use funds from your IRA to buy gold through a custodian. Custodians also play another important role here—they buy the gold on your behalf and organize it to be transported to and protected by an IRS-approved third party.

Gold IRA custodians may offer the following IRA plans:
● Roth
● SEP
● Traditional IRA

Storing your physical gold in an IRS-approved depository

Planning to keep your gold at home? Per IRS guidelines, you won’t be able to store your IRA gold yourself, even if it’s in a local security deposit. Why? Because as soon as it enters your home, it can be considered a distribution, which may result in losing some of the tax benefits of having an IRA in the first place. You could also be penalized and required to pay back taxes if you’re under 59½. By law, the gold in your IRA must be held by a bank or an IRS-approved non-bank trustee. Your custodian may already have a preferred approved third-party depository or a handful of approved depositories to choose from.

Keeping your gold in your IRA until you are 59½

When you reach 59½ years of age, you can either liquidate your gold for cash or take physical possession of your gold as a distribution in kind without being penalized.

Know how much you can contribute.

If you already have a 401(k) or other retirement account, you can also make contributions to your gold IRA account within the limits set by the IRS. You will be charged a tax of 6% per year on any excess contributions you make, so you may wish to plan accordingly, check the limitations for your age and income level, and consult with a tax advisor when necessary.

Making use of a self-directed IRA

One of the big benefits of having a self-directed IRA is that your asset choices greatly expand. A 401(k) as decided by your workplace plan can be limiting in the type of assets allowed.

Self-directed IRAs can support:
● Gold and other precious metals
● Real estate
● Bonds
● ETFs
● Stocks
● Mutual funds

If you feel that you’re being limited by your 401(k), it might be a good time to explore a self-directed IRA.

Want to learn how easy it is to start a gold IRA?

If you haven’t opened a gold IRA but are curious about the benefits and considerations, learning more is a good place to start. Although it may seem daunting to take your retirement portfolio into your own hands, starting a gold IRA doesn’t have to be difficult. Your dedicated U.S. Money Reserve IRA Account Executive can walk you through the entire process and help you every step along the way. Learn how simple taking charge of your retirement with a gold IRA can be.

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