Platinum IRA Rollover Guide: Move Platinum Into Your IRA
Platinum has remained an excellent option for different investments for retirement. This is because platinum is a precious metal that holds much value. Platinum is a rare metal and is seen as a valuable item. Moreover, as the IRS approves platinum for IRA inclusion, many investors have been considering diversifying their portfolios with the contribution of platinum.Platinum is a great industrial metal and a remarkable metal to serve as an alternative investment for your retirement savings.
As platinum tends to recover its price even if it falls below gold's price, platinum IRA rollover is a great opportunity to boost your retirement savings. You need to ensure that your retirement funds are sufficient to last you long so that you can spend your golden years in extreme comfort.
This article has discussed what exactly a platinum IRA rollover is and how it works!
What is a Platinum IRA Rollover?
Platinum IRA rollover refers to moving your current retirement account into a self-directed IRA account that mainly consists of many platinum holdings; however not limited to that only. An IRS-approved depository holds these precious metals.
For a good investment portfolio, it is important that the metals are diversified.
You can conveniently transfer your money from an old retirement plan, whether an individual or an employer retirement plan to a platinum metal IRA rollover.
This rollover type will save you from taxes or penalties when withdrawing earlier than the set time.
What types of accounts qualify for a platinum IRA rollover?
The types of accounts that qualify for a platinum IRA rollover are 401(k), 403(b), 457(b), and TSPs.
With IRAs, you can conveniently transfer an IRA to a platinum IRA. Roth IRA, Traditional IRA, Simple IRA, SEP, or a Self-directed IRA can easily roll over to a platinum IRA.
You can have a platinum IRA rollover from a 401k if you have parted ways with the company that the 401k was associated with. Moreover, a 403(b) plan is for tax-exempt organizations, school employees, etc. Hence, if you no longer work for any said organization, you can rollover to a platinum IRA.
With a 457(b), employees of the local government and the state government and those working for public services such as firefighters and policemen can benefit from their retirement savings. You can opt for a platinum IRA rollover if you discontinue your job. However, once you turn 70 and a half, you can opt for platinum IRA rollover if you are still associated with your job.
Lastly, TSPs facilitate government employees, and they are similar to 401(k) but for government employees and those in the civil service. You can only opt for a platinum IRA rollover once you leave the job.For TSPs, 401k,s and 403(b)s, you can opt for a partial IRA rollover as once you turn 59 and a half and are still working your job and associated with one of these accounts, and you may be permitted an in-service distribution.
How does a platinum IRA rollover work?
Any individual with single or multiple IRA accounts or other employer-sponsored plans can easily transfer all or some of their funds into a platinum IRA account. This is what a platinum IRA rollover is. Moreover, you can move these assets easily without much hassle, and the best part of the rollover is that you do not have to pay any extra taxes in most cases.
This rollover occurs only when you request the transfer of your assets and funds in your current retirement account to a platinum IRA rollover account. A rollover occurs when distributions from any current employer-retirement plan are made directly to the platinum IRA custodian.
Everything you need to know about the platinum IRA rollover
The metals approved for a platinum IRA rollover should follow certain guidelines to be eligible. Their eligibility also depends upon the minimum fineness, which must be 0.9995 or greater.
Furthermore, for a platinum IRA rollover, only some specific platinum bullion bars and coins have been approved.
You can buy the coins in the standard size of 1 ounce; however, there are different sizes that you can purchase the coin in. These include sizes in fractions such as tenth-ounce and a quarter of a half ounce. If you are not too sure about the best choice, you can consult a financial advisor who will help you with smart investment strategies.
The bullion bars approved are produced by a national government mint or any refiner that NYMEX or COMEX approves.
Platinum rollover IRAs are not the same as regular IRAs; they don't just limit your investments to mutual funds, exchange-traded funds, or stocks. Rather when you roll over your current account to a platinum IRA, the precious metal IRA will present you with a huge variety of investment options. And these investment choices will not be just limited to platinum items such as platinum coins and platinum bullion bars. Rather, you can invest in other physical metals such as gold in gold bars, gold coins, etc. You can also invest in silver and palladium.
In addition to that, you can also invest in real estate with a platinum IRA.
How to start a platinum IRA rollover?
You can only have a platinum IRA rollover if you earn or are a spouse of somebody who earns.
Starting a rollover account the right way can provide you with tax benefits. You can roll them over to a precious metal IRA if you have funds in your old retirement.
Firstly, you need to open a self-directed individual retirement account. It would be best if you ideally did this through an IRS-approved custodian. An IRS-approved custodian can be any trusted financial institution or bank. Next, you should look for a broker who will locate your platinum or other precious metal bullion. It would be best to make sure that the broker you find is a trusted individual. You can ask your custodian for a recommendation to ensure that your assets are in safe hands.
The need for a reliable broker is so that they properly understand the purity standards IRS lays out and, therefore, accordingly locate the bullion. Moreover, a good brokerage will also let you know about the fees, investment offerings, and services.
Lastly, you can store this bullion with your chosen custodian. Choosing the right brokerage for any precious metal IRA rollover is important because it will ensure that you do not experience a pitfall.However, you need to understand that the custodian will charge you a storage fee for keeping your precious metals safe.
Benefits of a Platinum IRA Rollover
Hedge Against Inflation
When you roll over to a precious metal IRA, a big advantage is that platinum or other precious metals act as an inflation hedge. This is because most metals tend not to lose their value even in financial turmoil.
As compared to paper assets, platinum will hold its value. Furthermore, at times platinum prices fall below the price of gold. It is observed that the prices bounce back up as quickly, making it a safe-haven investment.These alternative investments protect your portfolio from an economic crisis.
More investment choices
When you transfer your funds from a standard IRA account or any other employer-sponsored plan to a precious metal IRA, you have more options to choose from when it comes to investment.
You are not restricted to just paper assets and mutual fund investment options. Rather you can invest in different metals and coin investments.Therefore, even though most retirement savings are based on stocks, bonds, and funds, rollovers allow you to invest in different metals.
Diversified Portfolio
Before you have a rollover, your investment portfolio is not very diversified as the investments are restricted to mainly paper assets. However, this is changed with a platinum IRA rollover as now your account will also contain different metals such as gold, silver, platinum, and palladium.Moreover, these precious metals are a superior long-term investment choice because they tend to grow their value, and in times of financial meltdown, the value is preserved.
Drawbacks of a Platinum IRA Rollover
Higher Fees
One of the disadvantages of a platinum IRA rollover is that you will have to pay higher fees when you transfer your funds and get a platinum IRA rollover. However, the transferring fee is not high.
Rather the storage fees are higher because the custodian charges for keeping your physical metal safe and secure. Additionally, you will also be required to pay the fees for transporting, purchasing, and shipping the metal.
You cannot store platinum at home
When you opt for a rollover account and then invest in the precious metals, you need to remember that you cannot keep those metals at home. IRS does not approve this. And if you want to, there are certain strict guidelines that you need to follow first.
Hence, if you plan to opt for a rollover, you must remember that you cannot keep the metals you invest in at home.
See also: Best Rated Gold IRA Companies
Wrapping Up
Everybody aims to achieve their retirement goals securely and efficiently. If you already have a retirement investment account but want to make it more strong and more secure, one way you can do so is through platinum IRA rollover.
Transferring your funds from your current retirement account to a new self-directed IRA like a platinum IRA is a super-smart investment strategy.
If you are unsure about how to deal with your precious metal IRA, you need to consult the advice of a financial planner who can guide you well.We hope you can successfully roll over to a platinum account, maximize your retirement benefits, and enjoy a wonderful retirement period!
Next read: How to Avoid Platinum IRA Scams
Precious Metal IRA Rollover Options
- Gold Rollover
- Silver Rollover
- Palladium Rollover
Was this resource helpful?
Disclaimer: Content on this website is not intended to be used as financial advice. It is not to be used as a recommendation to buy, sell, or trade an asset that requires a licensed broker. Consult a financial advisor.