Roth IRA

[Hobie]

Very interesting Edna in respect of future taxation on Roths. Sure seems like easy money for the fed to bail out Social Security, etc.

As much as don’t like investing in precious metals I’m now wondering if gold or silver bouillon may be a good tax free hedge. The only ‘tax’ if you will is the service fees when you sell it.

Still comes down to whether the growth less the anticipated taxes is greater than bouillon. But it keeps us thinking.

[waiting for bottom]

AMT rate is 28%. Convert now or you will pay more taxes when you retire, we all know tax rates are only going up.

For 2010 conversions, you can pay equally over 2011 and 2012.

[waiting for bottom]

AMT rate is 28%. Convert now or you will pay more taxes when you retire, we all know tax rates are only going up.

For 2010 conversions, you can pay equally over 2011 and 2012.

[waiting for bottom]

AMT rate is 28%. Convert now or you will pay more taxes when you retire, we all know tax rates are only going up.

For 2010 conversions, you can pay equally over 2011 and 2012.

[waiting for bottom]

AMT rate is 28%. Convert now or you will pay more taxes when you retire, we all know tax rates are only going up.

For 2010 conversions, you can pay equally over 2011 and 2012.

[waiting for bottom]

AMT rate is 28%. Convert now or you will pay more taxes when you retire, we all know tax rates are only going up.

For 2010 conversions, you can pay equally over 2011 and 2012.

[edna_mode]

As much as don’t like investing in precious metals I’m now wondering if gold or silver bouillon may be a good tax free hedge.

Tax-free? Would you kindly share your reference, preferably from the IRS and this year, supporting this?

Hmmm. Here is a link to the irs.gov document Section 408 regarding what is kosher to hold in an IRA:

http://www.irs.gov/pub/irs-tege/irc408.pdf

408(m) is the interesting part — it warns that investment using IRA funds into “collectibles” will be considered a disbursement, but makes a specific exemption for precious metal coins and bullion of a minimum “fineness”, *provided that bullion is in the physical possession of the trustee*. I assume that the “trustee” here would be the same as the “custodian”, and good luck to you finding a bank or broker willing to hold physical gold for you. Nor do I think businesses who do hold physical gold, like Kitco, be willing to deal with retirement account regulations.

And if you are considering investment in shiny metal outside a retirement account — I’m under the impression that these are considered “collectibles” in this context, hence subject to 28% long-term (>1yr) capital gains rate.

http://www.irs.gov/publications/p17/ch16.html
http://www.bankrate.com/brm/itax/Edit/tips/Stories/collect_taxrelief.asp

Precious Metals Investment Tax Rates

But hey, I’d love to be wrong.

[edna_mode]

As much as don’t like investing in precious metals I’m now wondering if gold or silver bouillon may be a good tax free hedge.

Tax-free? Would you kindly share your reference, preferably from the IRS and this year, supporting this?

Hmmm. Here is a link to the irs.gov document Section 408 regarding what is kosher to hold in an IRA:

http://www.irs.gov/pub/irs-tege/irc408.pdf

408(m) is the interesting part — it warns that investment using IRA funds into “collectibles” will be considered a disbursement, but makes a specific exemption for precious metal coins and bullion of a minimum “fineness”, *provided that bullion is in the physical possession of the trustee*. I assume that the “trustee” here would be the same as the “custodian”, and good luck to you finding a bank or broker willing to hold physical gold for you. Nor do I think businesses who do hold physical gold, like Kitco, be willing to deal with retirement account regulations.

And if you are considering investment in shiny metal outside a retirement account — I’m under the impression that these are considered “collectibles” in this context, hence subject to 28% long-term (>1yr) capital gains rate.

http://www.irs.gov/publications/p17/ch16.html
http://www.bankrate.com/brm/itax/Edit/tips/Stories/collect_taxrelief.asp

Precious Metals Investment Tax Rates

But hey, I’d love to be wrong.

[edna_mode]

As much as don’t like investing in precious metals I’m now wondering if gold or silver bouillon may be a good tax free hedge.

Tax-free? Would you kindly share your reference, preferably from the IRS and this year, supporting this?

Hmmm. Here is a link to the irs.gov document Section 408 regarding what is kosher to hold in an IRA:

http://www.irs.gov/pub/irs-tege/irc408.pdf

408(m) is the interesting part — it warns that investment using IRA funds into “collectibles” will be considered a disbursement, but makes a specific exemption for precious metal coins and bullion of a minimum “fineness”, *provided that bullion is in the physical possession of the trustee*. I assume that the “trustee” here would be the same as the “custodian”, and good luck to you finding a bank or broker willing to hold physical gold for you. Nor do I think businesses who do hold physical gold, like Kitco, be willing to deal with retirement account regulations.

And if you are considering investment in shiny metal outside a retirement account — I’m under the impression that these are considered “collectibles” in this context, hence subject to 28% long-term (>1yr) capital gains rate.

http://www.irs.gov/publications/p17/ch16.html
http://www.bankrate.com/brm/itax/Edit/tips/Stories/collect_taxrelief.asp

Precious Metals Investment Tax Rates

But hey, I’d love to be wrong.

[edna_mode]

As much as don’t like investing in precious metals I’m now wondering if gold or silver bouillon may be a good tax free hedge.

Tax-free? Would you kindly share your reference, preferably from the IRS and this year, supporting this?

Hmmm. Here is a link to the irs.gov document Section 408 regarding what is kosher to hold in an IRA:

http://www.irs.gov/pub/irs-tege/irc408.pdf

408(m) is the interesting part — it warns that investment using IRA funds into “collectibles” will be considered a disbursement, but makes a specific exemption for precious metal coins and bullion of a minimum “fineness”, *provided that bullion is in the physical possession of the trustee*. I assume that the “trustee” here would be the same as the “custodian”, and good luck to you finding a bank or broker willing to hold physical gold for you. Nor do I think businesses who do hold physical gold, like Kitco, be willing to deal with retirement account regulations.

And if you are considering investment in shiny metal outside a retirement account — I’m under the impression that these are considered “collectibles” in this context, hence subject to 28% long-term (>1yr) capital gains rate.

http://www.irs.gov/publications/p17/ch16.html
http://www.bankrate.com/brm/itax/Edit/tips/Stories/collect_taxrelief.asp

Precious Metals Investment Tax Rates

But hey, I’d love to be wrong.

[edna_mode]

As much as don’t like investing in precious metals I’m now wondering if gold or silver bouillon may be a good tax free hedge.

Tax-free? Would you kindly share your reference, preferably from the IRS and this year, supporting this?

Hmmm. Here is a link to the irs.gov document Section 408 regarding what is kosher to hold in an IRA:

http://www.irs.gov/pub/irs-tege/irc408.pdf

408(m) is the interesting part — it warns that investment using IRA funds into “collectibles” will be considered a disbursement, but makes a specific exemption for precious metal coins and bullion of a minimum “fineness”, *provided that bullion is in the physical possession of the trustee*. I assume that the “trustee” here would be the same as the “custodian”, and good luck to you finding a bank or broker willing to hold physical gold for you. Nor do I think businesses who do hold physical gold, like Kitco, be willing to deal with retirement account regulations.

And if you are considering investment in shiny metal outside a retirement account — I’m under the impression that these are considered “collectibles” in this context, hence subject to 28% long-term (>1yr) capital gains rate.

http://www.irs.gov/publications/p17/ch16.html
http://www.bankrate.com/brm/itax/Edit/tips/Stories/collect_taxrelief.asp

Precious Metals Investment Tax Rates

But hey, I’d love to be wrong.

[Hobie]

This is how it was explained to me by a gold salesman: Bullion should not be your entire IRA holdings. First you use non-IRA funds to buy, then you must take possession of bullion. Not coins. It’s purchase and sale are not reported by the seller to the IRS. When you sell, it is up to you to declare as ordinary income. They said that in transactions under $10k ‘no one’ reports, just cash out and done.

They don’t talk about what the bank reports when you deposit a $10k check.

Like I was saying, it makes you think. I’m with everyone else, just trying to figure out the best way to preserve my capital and bank for retirement.

[Hobie]

This is how it was explained to me by a gold salesman: Bullion should not be your entire IRA holdings. First you use non-IRA funds to buy, then you must take possession of bullion. Not coins. It’s purchase and sale are not reported by the seller to the IRS. When you sell, it is up to you to declare as ordinary income. They said that in transactions under $10k ‘no one’ reports, just cash out and done.

They don’t talk about what the bank reports when you deposit a $10k check.

Like I was saying, it makes you think. I’m with everyone else, just trying to figure out the best way to preserve my capital and bank for retirement.

[Hobie]

This is how it was explained to me by a gold salesman: Bullion should not be your entire IRA holdings. First you use non-IRA funds to buy, then you must take possession of bullion. Not coins. It’s purchase and sale are not reported by the seller to the IRS. When you sell, it is up to you to declare as ordinary income. They said that in transactions under $10k ‘no one’ reports, just cash out and done.

They don’t talk about what the bank reports when you deposit a $10k check.

Like I was saying, it makes you think. I’m with everyone else, just trying to figure out the best way to preserve my capital and bank for retirement.

[Hobie]

This is how it was explained to me by a gold salesman: Bullion should not be your entire IRA holdings. First you use non-IRA funds to buy, then you must take possession of bullion. Not coins. It’s purchase and sale are not reported by the seller to the IRS. When you sell, it is up to you to declare as ordinary income. They said that in transactions under $10k ‘no one’ reports, just cash out and done.

They don’t talk about what the bank reports when you deposit a $10k check.

Like I was saying, it makes you think. I’m with everyone else, just trying to figure out the best way to preserve my capital and bank for retirement.

[Author]

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