Since 1975 investors in the USA have been able to invest in a self-directed Precious Metals IRA. This is considered an effective option to help offset inflation and to have the flexibility and freedom to maximize tax benefits.
However, an individual that holds a Precious Metals IRA cannot also engage in the buying and selling of precious metals. To ensure full compliance with these regulations, the individual must also select a Precious Metals IRA custodian.
The Role of the Custodian
A Precious Metals IRA custodian manages the investments, the precious metals, in the IRA. The custodian follows the directions of the account holder to add to or withdraw from the IRA while ensuring all IRS requirements, regulations, and rules are followed.
Choosing an experienced Precious Metals IRA custodian is critical. The custodian has the responsibility of following the latest in IRS laws, and they must also be approved by the IRS. As an investor, the experience of the custodian is critical to avoid mistakes that can result in additional fines, taxes, or penalties.
The custodian is essential in all steps of opening, managing, and reporting to the IRA. They work with the individual to open or set up the Precious Metals IRA, including managing transfers or rollovers of existing IRAs. The custodian also provides all required reports to the IRS while also reporting on a quarterly basis to the investor.
Keep in mind, the custodian cannot provide investment advice or evaluate the decisions of the investor. The custodian is also not responsible for how the Gold IRA performs or for making predictions about how it will perform in the future.
