Key Takeaways
- Plan to work alongside your custodian if/when you want to buy or sell precious metals within your account. Federal law requires that an IRS-approved custodian execute these transactions on your behalf.
- Holding gold in a retirement portfolio requires yearly administrative and storage fees. You might want to pay with fiat or credit to prevent a portion of your gold from being liquidated to cover the fees.
- Rebalance your portfolio(s) as needed to keep your asset mix close to your original strategy.
- When you reach retirement age and are ready to take distributions, your custodian can liquidate portions of your holdings for cash withdrawals, or you can take an “in-kind” distribution to receive metals directly.
It’s never too early to plan your gold IRA retirement strategies. After funding your gold IRA, the most difficult part is behind you. However, the account requires basic ongoing maintenance. Your custodian will be there to help, so you won’t be navigating the next steps alone.
Here’s what to expect as you maintain, balance, and eventually take distributions from your gold IRA.
Maintaining Ongoing Relationships
There are two key entities you can expect to interact with:
- The Custodian: Your custodian handles the paperwork, logistics, account tracking, and compliance reporting. They’ll execute transactions on your behalf, such as buying or selling metals.
- The Depository: You may wish to contact the secure storage facility where your gold is held if you wish to schedule a visit to inspect, audit, count, and/or simply view your holdings.
Paying Yearly Fees
Your gold IRA retirement plan must include a payment method for covering your account’s yearly administrative and storage fees. Portions of gold in a retirement portfolio will be liquidated to cover fees unless the custodian is paid directly or directed to use cash within the account.
Rebalancing Your Portfolio
Over time, the mix of assets in your portfolio will naturally shift due to market fluctuations.
For example, if precious metals surge, you’ll end up holding a larger amount of gold than you initially planned. Similarly, a high-performing stock in your broader portfolio may inspire you to add more gold.
When and how you rebalance your portfolio is up to you, but your custodian must execute the transactions on your behalf. Here are two common ways to balance your gold IRA retirement assets:
- On a Schedule: Every six months, year, or other time frame, you check your accounts’ balances to determine which assets need to be adjusted.
- Percentage Triggers: Whenever the value of your assets move outside a specified percentage bracket, you make adjustments accordingly.:
Taking Penalty-Free Distributions
When you reach age 59 ½, here’s how to plan withdrawals from a gold IRA:
- Liquidate Assets for Cash: You direct your custodian to sell a portion of gold. Upon completion of the transaction, the funds will be sent to your bank account. Our buyback program makes this process quick and easy.
- Take “In-Kind” Distributions: If your gold IRA retirement plan involves private gold ownership, you can take in-kind distributions, which is when your physical gold is shipped securely and discreetly from the depository to your residence.
Be aware of the tax treatment of gold IRA withdrawals. After being withdrawn, gold in a retirement portfolio will be taxed as ordinary income based on the current market value. Note that your income tax burden might be lower now due to your retirement status.
Taking Required Minimum Distributions
Required minimum distributions (RMDs) are annual withdrawals mandated by the government. Storage rules for a gold IRA after retirement apply because you can’t leave tax-deferred gold in the depository indefinitely.
- Your RMD age is 73 if you were born 1951 through 1959.
- Your RMD age is 75 if you were born 1960 or later.
Call for a Free Gold IRA Retirement Consultation
Citadel Gold is a trusted gold IRA firm and precious metals dealer. Depend on our team of highly qualified specialists to facilitate a smooth experience for many years to come.
If you have any questions about the next steps, please contact us now at 800-605-5597 for a free consultation. We’ll make sure you feel comfortable and confident moving forward with your gold investment or IRA rollover. Diversify your investments with gold in a retirement portfolio.
