Tracking Down IRA Basis: A Gold Mine for Beneficiaries

What your loved ones know now could benefit them later.

There isn’t a soul around who likes to pay taxes unnecessarily. Heirs who inherit IRAs give a good portion of the money left to them to Uncle Sam. Making your loved ones aware of the IRA basis of the inheritance you’re leaving to them is very beneficial as it allows them to stay within the law and reduce their tax liability. Otherwise, they’re stuck paying taxes on the post-tax money you saved for years. To avoid complicating matters, it’s important to know the amount of contributions that are nondeductible aka the basis so that the money doesn’t get taxed twice.

Here’s was you need to know about basis and how it affects the money you leave to your heirs in your gold IRA companies.

What’s Been Taxed and What Hasn’t Been Taxed

If you’ve made post-tax contributions to an gold IRA companies, the person or people that you will your IRA to must know how much of the money is tax-deductible.  That way, they’re only responsible for the part of the inheritance that hasn’t been taxed. Working with your financial advisor to come up with a document that explains this information to your loved ones is ideal. They’ll be able to figure out their own taxes easier because of the steps you took to make your gift to them clearer.

Roth IRAs and How They Work

 Roth IRAs work differently than traditional IRAs because the account owner’s contributions are not deductible. Withdrawals are also tax-free as long as the decedent contributed money to the account in the five years prior to their death. All distributions you make to this type of retirement account are tax-free unless for some reason, you pass away before the five year mark is up. The basis is removed tax-free. The distributions paying out what is left are then taxable and paid by the heir of your IRA account.

 Using Pre-Tax or Post-Tax Dollars to Buy Precious Metals

 You have the option to buy precious metals with pre-tax or post-tax dollars, whichever choice is best for you. Some people prefer to wait until their money is taxed to invest in gold, silver, and platinum. That way, the only tax they pay is on the profit they made from the sale of their precious metals. It gives investors more flexibility and control over their retirement funds.

Learning more about the different options that await you at Red Rock Secured is easy thanks to the resource center we created for you. There you will find downloadable guides that you can read about Gold IRAs and how they work. You can also read our blogs and peruse our catalog of inventory to familiarize yourself with the gold, silver, and platinum sold on our website.

 Give Your Loved Ones an Advantage with Red Rock Secured

Invest in a Gold IRA companies with Red Rock Secured. Give your loved ones financial peace and security when you’re no longer here with them. The money you leave for your beneficiaries can change their lives for the better. Having the difficult conversation about IRA basis helps them prepare for what’s to come once they’ve been given their inheritance from your estate.

Self Directed IRA

What you need to know to make an informed investment decision in your financial future.

As you get closer and closer to retirement age, it’s important that you know which opportunities await you financially. After all, you’re going to need a great sum of money to see you through the rest of your lifetime. Even if you live a modest lifestyle and plan to do so as you grow older, it doesn’t mean that a medical or financial emergency won’t wipe out what you worked so hard to save. When it comes to investing in your future, you can never have too many options to choose from.

Letting You Call the Shots When It Comes to Your Retirement Fund

Having a say about how your money is invested is among the most powerful feelings in the world. That’s where the self-directed IRA comes in. Rather than hope that someone else has your best interests in mind, you take charge of your own retirement accounts and determine how the money you’ve saved is invested. To further explain the process and how it pertains to precious metals, we’ve described it in greater detail below.

A Self-Directed IRA Gives You a Greater Sense of Freedom and Accomplishment

A self directed IRA puts you in greater control of your retirement funds. It allows you to take part or all of the money you’ve put into a traditional IRA and redirect it into a gold or precious metals IRA with Red Rock Secured. The advantages that come with this type of transaction is that you get to do so without incurring penalties and fees while actively diversifying your investment portfolio.

Precious metals such as gold, silver, and platinum have maintained their value over time because of their scarcity.  There are fewer gold, silver, and platinum coins than there is paper currency which can be printed on demand. When you transfer your savings into a Gold IRA, it remains untaxed until you decide to take a disbursement. All the while, the coins and bullion you’ve invested in continue to grow in value, making you a handsome profit to add to your retirement funds.

Self directing funds gives you the power to invest them the way you want. Rather than rely on traditional retirement accounts which don’t always pay out what you hoped they would in interest, you get to decide which options help your money grow faster with the least amount of risk. It doesn’t mean that you don’t rely on your financial advisor at all. It means that you ultimately make the final investment decisions yourself.

Let Red Rock Secured Help You Invest in a Brighter Financial Future for Yourself

Interested in a Gold IRA? Red Rock Secured has you covered. We offer free downloadable investment guides for you to refer to. Jam-packed with the information you need to feel informed about self-directed IRAs and the benefits of investing in precious metals such as gold, silver, and platinum, the printable documents serve as a valuable resource that you can read whenever you need more information about your retirement accounts.

Protect the money you worked so hard to earn, save, and invest with.

When it comes to investing your future, you need a calculated plan in order to preserve the majority of your savings. After all, the money you sink into a 401K or IRA is non-taxable until you withdraw it. Doing so early comes with hefty penalties which kill your retirement fund. Each time that you withdraw from your 401K or IRA early, you’re taking a gigantic risk with your financial future. You may wind up having nothing more than some lofty dreams if you’re not careful.

Tax-Free Contributions Until You Withdraw

Think about it for just a second so you understand the result of your actions. Throughout your working career, you have the opportunity to put money into a 401K or IRA without paying taxes on your earnings until you reach retirement age. Your employer may even offer to match your contributions up to a certain dollar amount as long as you don’t attempt to withdraw the money early.

What You Lose by Borrowing from Your Future

If an emergency situation arises and you choose to take money from your retirement account before you reach retirement age, you’re slapped with a hefty fine which reduces the amount of money that you receive after it has been taxed accordingly. It doesn’t earn you interest and you can lose out on what your employer would have paid in throughout the lifetime of the 401K if you decide to stop contributing to the fund yourself.

A Better Way to Invest

Buying gold, silver, and platinum with taxed dollars gives you a safety net when it comes to your retirement funds. Because the money that you used to purchase precious metals was already taxed at the time of purchase, it’s not subject to being taxed a second time when you decide to sell it. It’s an option that we give our customers who don’t necessarily want to transfer their IRA into a Gold IRA.

Even if you were to transfer funds, you’d be able to earn a significant amount of money off your savings given that you didn’t withdraw from your account early. A Gold IRA gives you the opportunity to invest in precious metals which are scarce, retain their value better than paper currency, and often increase in value due to customer demand. As your retirement fund grows, so does your confidence in caring for yourself as you retire.

Educating our customers about the importance of having emergency savings while contributing to retirement funds is key. It makes the difference between you being able to enjoy a long, healthy retirement and barely making ends meet. By adopting a future-thinking mindset, you’re able to avoid the pitfalls that come with having too little money saved for when you retire.

Your Ideal Lifestyle Awaits You with Red Rock Secured

Secure your ideal lifestyle during retirement with Red Rock Secured. Make the most that you can out of the investments you make while working. Transferring your retirement savings into a Gold IRA takes little time and effort. There are no fees or penalties involved in doing so, and you can keep your precious metals wherever you prefer including our high-security Depository.