Silver IRA offers excellent security and stability that any individual would wish to have in a retirement fund. It is the most preferred IRA since it offers more upside potential and less downside risk. However, just like with any other investments, there are a couple of factors that need to be considered upfront. Silver IRA comes with a particular set of rules, which you have to familiarize yourself to before adding it to your portfolio.
Basics of Silver IRA rules
The fineness of silver must be .999
The fineness of silver in a bar can be described as the amount of pure silver contained in the bar. The requirement for silver to be eligible for an IRA is that it must have a fineness of more than .999 (or 99.9% purity).
Not all silver bullion is suitable
Despite the minimum purity standards given, only certain silver bullion is eligible. Among the silver approved by IRA are American Silver Eagle Coin, Australian Silver Vienna Philharmonic coin, Canadian Silver Maple Leaf Coin, Australian Kookaburra Silver Coin, and Mexican Silver Liberated Coin. Silver bars that are 99.9% pure from refiners and mints that have been approved are also eligible.
A custodian must be the one holding your silver
A rule that applies not only to silver but also to other precious metals as well is that they must be kept and managed by a custodian who is approved. There is no way that you can keep the metals stored in your bank deposit or safe. The custodian will have them held securely in a metal depository.
There are regular limits applied to IRA contributions
The IRS defines the new contributions to your silver IRA for each year. It is possible to roll over funds from other retirement accounts into your silver IRA. The limit does not include rollover funds from other retirement accounts.
Silver that you already have ownership to cannot be added
If you have physical possession of a coin approved by the IRA, you will not be able to add it to your silver IRA account. The exception to this comes when the owned coin is part of another IRA. For such a case, you can roll it over to a new account.
Silver IRA is an excellent way to create a well-diversified portfolio for yourself, shielding your retirement funds from many potential threats. To ensure that you get the most out of it, you can employ the services of a rollover company to help you through the process.