Gold IRA Question: Roth vs. Traditional - What are you guys doing?

Mark Adams

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Gold IRA Question: Roth vs. Traditional - What are you guys doing?

mark_adams👑Elite (1m-5m)

less than a minute ago

Key Takeaways

•Curious what everyone else is doing for their Gold IRA strategy, specifically on the Roth vs.
•The tax deferral has been nice, obviously, given my income bracket here in Greenwich.
•The contributions have always been a solid deduction on the nine-figure W2s.

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Curious what everyone else is doing for their Gold IRA strategy, specifically on the Roth vs. Traditional front. I’ve been running a traditional IRA for my precious metals for a few years now, sitting on about $750k in physical gold coins, mostly Eagles and Buffalos, all stored securely through Augusta Precious Metals. The tax deferral has been nice, obviously, given my income bracket here in Greenwich. The contributions have always been a solid deduction on the nine-figure W2s.

My thinking was always that the tax deduction now was more valuable, especially since I expect my income to be lower in retirement (relatively speaking, of course – I'm not planning on selling all the assets and living in a shack, but the big hedge fund paychecks won't be there). But lately, with all this talk about potential tax hikes down the road, and just general uncertainty about future fiscal policy, I’m starting to wonder if I should have been funneling some into a Roth Gold IRA instead. The idea of tax-free withdrawals on what could be substantial gains is pretty appealing, especially if gold decides to really take off.

I know the income limits for direct Roth contributions are an issue for us, so for anyone in a similar spot, are you backdoor Roth'ing your gold? Or just sticking with the traditional pre-tax contributions and hoping for the best when it comes to future tax rates? I've been so focused on the main portfolio that this piece sometimes feels a bit neglected, even though it's a significant chunk of my personal allocation.

Any thoughts or experiences would be super helpful. Are you actively splitting your contributions, or are you all-in on one side? Also, any specific types of gold coins you prefer for your Roth/Traditional accounts, or does it not really matter? I've mostly stuck to the common ones for liquidity, but thinking if there's an advantage to certain types.

4 comments

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Best Answer▲ 10 upvotes

james_wilson👑Elite (1m-5m)

This is a great question! I actually wrestled with the exact same thing a few years back when I first started looking into a gold IRA. Ended up going with a Traditional myself, mostly because my income bracket was higher then, and the tax deferral made more sense for my long-term outlook. Glad to see others are thinking through this too, it's a big decision!

Comments (4)

james_wilson👑Elite (1m-5m)Real Investor✓ Verified•less than a minute ago

gary_stewart📊Growing (50-100k)•less than a minute ago

That's a pretty substantial stack of Eagles and Buffalos! Sounds like you've been in the game for a while. Out of curiosity, what made you initially lean towards a traditional IRA for your gold instead of Roth?

jason_morgan💰Established (100-250k)Real Investor✓ Verified•less than a minute ago

Interesting strategy, sounds like you've got a good amount built up. While the tax deferral of a traditional IRA is definitely appealing, I've always leaned towards the Roth for my gold. The idea of tax-free withdrawals in retirement, especially with something like gold that I expect to appreciate significantly, just feels like a stronger long-term play. Plus, not having to worry about RMDs on that gold in retirement is a nice perk.

catherine_bell🏆Advanced (250-500k)Real Investor•less than a minute ago

Hey, cool to see someone else thinking strategically about this! I went with a Roth for my gold IRA, mainly because I'm betting on lower taxes in retirement and want that tax-free growth. One thing I found really helpful when I was deciding was using one of those "Roth vs. Traditional" calculators. You plug in your current income, expected retirement income, and it gives you a pretty good idea of which might be more beneficial in the long run. Might be worth a look if you're ever reconsidering or for anyone else trying to decide!

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