Traditional or Roth IRA… Which is right for you?

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Traditional or Roth IRA… Which is right for you?

Most people are aware that there are two different types of IRAs an investor can choose, Traditional or Roth IRA. Its important to know which type of IRA best suits your own individual needs.


Traditional IRAs allows investors to put pre tax, or tax deductible, money into their IRA. This money can be invested into any asset of their choosing, including gold, silver, and platinum. This money can then grow over time tax-free, and upon retirement age, which is currently 59.5, the investor can start to withdraw from their account without penalty. However, the investor will have to pay taxes on the withdrawn money based on their current tax bracket.

One distinct advantage for individuals who contribute money to a traditional IRA is that they may be able to lower their tax bracket because IRA contributions are tax deductible. Traditional IRAs also allow you to invest more money because taxes are not deducted from the original investment capital.

A traditional IRA also offers individuals to make early withdraws (up to $10,000) without penalty in the event of unusual circumstances such as a first time home purchase, or medical bills.

Roth IRAs allows investors to put post-tax money into their IRA. The money invested can grow over time tax-free, and upon retirement age (59.5), the investor can begin to withdraw money from their account without penalty and without taxation as long as the account has been open for at least 5 years.

Other benefits of Roth IRAs are that investors who are over the age of 70.5 can still contribute to their IRA and ROTH IRAs do not have Required Minimum Distributions (RMD) like a traditional IRA.

The general rule is this, Traditional IRAs are typically best for individuals who anticipate their tax rate at retirement to be lower than their current rate and ROTH IRAs are typically best for those who believe their tax rate at retirement will be higher than their current tax rate.

If you are looking for help opening or rolling over an IRA into a Precious Metals IRA, call 1-877-227-2646 and ask to speak to our IRA department. We can help answer any questions you may have about Precious Metal IRAs.

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