Roth or Traditional for Gold IRA? Made my choice, curious about yours.

Timothy Reed

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Roth or Traditional for Gold IRA? Made my choice, curious about yours.

timothy_reed💎Premium (500k-1m)

about 2 hours ago

Key Takeaways

•Okay, so I've been kicking this around for a while now, thinking about the best way to diversify some of my retirement savings into physical gold.
•Most of my career was spent in dairy, so I’m used to thinking long-term and hedging against market swings.
•I’ve built up a decent chunk, probably in that $750k range in various accounts, and I’m looking to allocate about 10-15% of that into a Gold IRA.

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Okay, so I've been kicking this around for a while now, thinking about the best way to diversify some of my retirement savings into physical gold. Most of my career was spent in dairy, so I’m used to thinking long-term and hedging against market swings. I’ve built up a decent chunk, probably in that $750k range in various accounts, and I’m looking to allocate about 10-15% of that into a Gold IRA. The big question, as many of you probably faced, was Roth vs. Traditional.

For me, after talking to a few folks and running some numbers with my advisor up here in Madison, I ultimately leaned Traditional. My thinking is, I’m 58 now, and my income is still pretty decent. I figure I’m going to be in a lower tax bracket when I actually start pulling funds out in retirement. Plus, the upfront tax deduction is pretty attractive right now. I just rolled over about $80k from an old 401k into a Traditional Gold IRA, planning to buy some bars and maybe a few coins. It felt like the most practical move for my situation.

I know the Roth crowd has a strong argument for tax-free withdrawals in retirement, especially if you expect taxes to go up drastically or if you're younger. Part of me sometimes wonders if I should have diversified that choice too, doing a little of both. But for this specific chunk, Traditional just made more sense with where I'm at in life and my anticipated income trajectory.

Curious to hear from others who have made this decision. What pushed you one way or the other? Did your age or income heavily influence your choice? Any regrets either way? I'm always open to hearing different perspectives, especially from folks who’ve been through this process.

4 comments

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gary_stewart📊Growing (50-100k)

Totally get this. I went through the same mental gymnastics when I was setting up my gold IRA. For me, I ended up going with a Traditional. My income is pretty high now, and I'm banking on it being lower in retirement, so the upfront tax deduction made more sense. Plus, it felt a little more aligned with the whole "long-term hedge" vibe similar to how you're thinking. Curious to hear what you landed on!

Comments (4)

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

maria_campbell📊Growing (50-100k)✓ Verified•less than a minute ago

That's an interesting analogy with the dairy! So, when you mentioned "physical gold," are we talking about actual coins/bars held in a depository, or was your choice more geared towards a gold ETF or some other paper asset that tracks gold?

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

Interesting choice! While the tax-free withdrawals of a Roth are super appealing, especially if you expect to be in a higher tax bracket later, I've always leaned more towards the traditional side for my gold IRA. The upfront tax deduction is hard to beat, particularly if you're in a good earning year now. Plus, if gold really takes off, those pre-tax contributions could mean a much larger sum growing tax-deferred for longer. Just my two cents, but good luck either way!

joyce_cooper📊Growing (50-100k)✓ Verified•less than a minute ago

Hey, that's a great question to be asking! Roth vs. Traditional for a Gold IRA really boils down to your individual tax situation now vs. what you expect it to be in retirement.

One thing that helped me when I was making this decision was a simple tax calculator that compared the two. It's not advice, but it can help visualize the potential tax implications. There are a few out there, but I found this one pretty straightforward: https://www.investor.gov/financial-tools-calculators/calculators/retirement-savings-contributions-calculator (just input your numbers as if it were a regular IRA, the Gold IRA is just the investment vehicle inside). Hope that helps!

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