Know the types of gold IRAs

Gold can be one good investment. It has historical value Keeping inflation constant And Economic uncertainty, making this a great way to protect money in your investment portfolio. This is one way diversity Your investments, which can help balance risk and reward and potentially protect you against losses from high-risk assets stock.

There are several How you can invest in goldincluding Gold IRA. Like regular IRAs, gold IRAs are retirement accounts that offer certain tax benefits. Unlike regular IRAs, they hold physical gold instead of stocks, bonds and mutual funds.

Gold IRAs come in three forms: Traditional, Roth, and Simplified Employee Pension (SEP) IRAs. Check out the differences between these types to determine the best option for you. Start exploring your gold IRA options now.

3 Types of Gold IRAs to Know

Each type of gold IRA has its own benefits and requirements. Here’s what you need to know about each.

Traditional gold IRAs

• Eligibility: As long as you have earned, you can contribute
• How they are financed: Including pre-tax dollars (the money you pay is not taxed)
• Contribution limit: $6,500 or $7,500 for tax year 2023 for those 50 and older
• Are contributions tax-deductible?: yes
• Are Withdrawals Taxable?: yes
• Early withdrawal rules: If you withdraw the fund before the age of 59 ½, you will have to pay tax and 10% penalty
• Required Minimum Distributions (RMDs): You must start taking distributions at age 73

Traditional gold IRAs may be a good choice for those who expect their retirement income to be less than their current income. Because traditional IRAs are taxed, when you withdraw the funds (at your income rate at the time), your money will be taxed at a lower rate than if you had contributed it.

To learn more about gold IRAs request a free gold IRA information today.

Roth Gold IRA

• Eligibility: Your income must be within a certain range ($153,000 for individuals and $228,00 for married couples filing jointly for the tax year)
• How they are financed: With after-tax dollars (the amount you pay is taxed)
• Contribution limit: $6,500 or $7,500 for tax year 2023 for those 50 and older
• Are contributions tax-deductible?: no
• Are Withdrawals Taxable?: no
• Early withdrawal rules: You can withdraw funds at any time tax- and penalty-free.
• Required Minimum Distributions (RMDs): None of them

Roth gold IRAs can be a good option for those who expect a high income in retirement. Roth IRA contributions are taxed when you make them (at your income tax rate at that time). Hence, your money will be taxed at a lower rate than the tax at the time of withdrawal.

SEP Gold IRAs

• Eligibility: Small-business owners and self-employed individuals
• Contribution limit: Up to 25% of your self-employed compensation for tax year 2023 or $66,000 (whichever is greater)
• How they work: Same as traditional gold IRAs

SEP Gold IRAs are designed for self-employed individuals, such as small-business owners, freelancers and entrepreneurs. They have all the same features as traditional gold IRAs, except their contribution limits are significantly higher.

If you’re self-employed, you can open a traditional or Roth gold IRA, so that’s not your only option. However, if you don’t need the tax benefits of a Roth IRA, a SEP Gold IRA is worth it for the contribution limit alone.

Bottom line

When making any kind of decision To open a gold IRA, consider your financial situation — now and how you want it to look in the future. Weigh the tax benefits of each, and if you’re self-employed, consider choosing a SEP Gold IRA for the higher contribution limit. And, as with any financial product, consult a financial advisor if you have questions about the best option for your unique situation.