MarketWatch recently published an article on best practices for including precious metals in investments for retirement. The financial outlet draws on insights from FML CPAs partner Vinny Fanelli on Gold IRAs.
“There’s a lot of extra work involved compared to a traditional or Roth IRA, including storage fees and other administrative costs,” says Vinny Fanelli, certified public accountant at Fiondella, Milone & LaSaracina. “You might hear financial advisers talk about rollovers and conversions to get into a Gold IRA. A rollover will keep the money in a tax-deferred account, meaning it has not yet been taxed. A qualified third-party custodian must keep any IRA-owned physical metals in an approved depository. If you take physical possession of the gold, the IRS considers the entire account distributed, exposing you to taxes on the full value and penalties for an early withdrawal.”
With a conversion of a Gold IRA to a Roth, you pay the tax at your current ordinary income rate. “The growth on the gold bars can be withdrawn later, tax-free. If you predict gold will continue to skyrocket and you will be in a high-income tax bracket when you retire, it could be the right move for you to strategically complete a Roth conversion,” says Fanelli.
Read the full article on MarketWatch.
Vinny was promoted to partner at FML earlier this year. His work focuses on engagements for U.S. federal and state income tax compliance and strategic planning. He has wide-ranging experience in providing comprehensive services to private equity backed companies and closely held businesses including service providers, biotech, construction, manufacturers and real estate. Vinny specializes in individuals connected to flow through partnership and S Corporation businesses including high net-worth individual tax returns.
In the role of a trusted business advisor, Fanelli works closely with business owner clients throughout the entire business lifecycle. Beginning with entity selection and tax planning for the current year, Fanelli guides clients through tax planning for subsequent years and potential exits.