Discover the Secure Options for Your IRA

• IRAs provide no tax benefits for investments that are non-retirement oriented.
• As allow individuals to invest after-tax money in investments that can grow tax-deferred. Under current rules, investors are limited to traditional assets such as stocks, bonds, and mutual funds. However, as of April 5, 2019, certain precious metals, such as gold, silver, platinum, and palladium, as well as certain cryptocurrencies, can be invested in. Certain precious metal coins, such as American Eagles and Canadian Maple Leafs, are permissible in IRAs. Gold and silver ETFs can be held in an IRA as well. However, investors should be aware of the risks associated with these investments. Cryptocurrencies can be volatile and susceptible to theft and fraud.
• As of 2019, investors can invest in precious metals and cryptocurrency through self-directed IRAs.

Investing in an Individual Retirement Account (IRA) offers significant advantages, such as tax advantages and asset protection. Many investors choose to invest their IRAs in mutual funds or exchange-traded funds (ETFs).
However, as of 2019, investors can invest in precious metals and cryptocurrency.

Traditional IRA

A traditional IRA lets you defer paying income tax on your contributions until you make withdrawals in retirement, typically after age 701⁄2. You can contribute up to $6,000 per year (or $7,000 if you are age 50 or older). Your contributions go into a tax-deferred account.
Roth IRA
With a Roth, your contributions go into an account that grows tax-deferred, but your withdrawals in retirement are tax-free. You pay income tax on your contributions up front, but the advantage is that your withdrawals in retirement will be tax free. Your contributions can be up to $6,000 per year (or $7,000 if you are age 50 or older).
SEP IRA
This type of IRA is offered by an employer and is attractive to self-employed people. With a SEP IRA, you don't pay any taxes on your contributions, and your earnings grow tax-deferred. You can contribute $56,000 (or $62,000 if you are age 50 or older). Your employer matches your contributions up to 25%.

Roth IRA

The Roth IRA is a retirement fund that, unlike a traditional IRA, requires you to pay taxes on your contributions up front instead of when you withdraw the money at retirement.
Roth IRAs have unlimited contribution limits. There are no income restrictions for Roth IRAs. You can make contributions to a Roth IRA as long as you are at least 18 years old.
Traditional IRAs
Traditional IRAs allow you to make tax-deductible contributions. You can also make nondeductible contributions, but you will have to pay taxes on those contributions when you withdraw them.

SEP IRA

A SEP IRA, or Simplified Employee Pension, is an IRA created for you by your employer. Your employer makes contributions to your SEP IRA. The SEP IRA is like an employer-sponsored 401(k) IRA.
You can contribute 25% to 35% of your gross income, depending on your age and number of years of participation, up to the maximum allowed by law. Your employer also contributes the same percentage of salary.
The SEP IRA limits contributions to $56,000 for 2020, with an additional $6,000 catch up contribution allowed by IRS.

SIMPLE IRA

A SIMPLE IRA is a retirement savings plan sponsored by your employer. Employees can defer up to $12,500 each year into the account, and employers are required to match that contribution.
ROTH IRA
A ROTH IRA is a retirement savings plan sponsored by an individual, not an employer. Contributions can be up to $6,000 per year, with earnings growing tax free.

Rollover IRA

With a rollover IRA, you move money from a 401(k) or 403(b) plan into an IRA, either at the same type or another type of account.
Rollover IRAs usually require very little paperwork, and the money is not immediately taxable, as with a distribution. Instead, the money is taxed when you withdraw it.
The rollover IRA must be set up within 60 days, or you may be subject to tax penalties.
A 60-day rollover period also applies for direct transfers from a 401(k) or 403(b) plan, and for traditional IRA-to-IRA rollovers.

Gold IRA: Should You Open One To Save For Retirement?

The Bottom Line

There are a number of options for your self-directed IRA, such as real estate, precious metals, private company stock, and alternative assets such as art, wine, and classic cars. For those who are comfortable taking risks, this is an ideal way to enjoy the benefits of investing while limiting your liability.