Although IRAs used to be limited to owning American Eagle gold and silver coins, IRAs can now invest in IRS-approved gold, silver, palladium, and platinum bars and coins. Silver coins and bars must be 99.9% pure; platinum and palladium coins and bars must be 99.95% pure. The IRS sets these limits to ensure that investors buy high-quality metals that retain their value over the long term. Eligible gold can be included in your IRA, “provided that, according to the IRS, it is physically owned by a bank or an IRS-approved non-bank trustee.
Investors can hold various types of physical precious metals in their precious metal IRA. However, the IRS has a few limitations. The only types of physical precious metals eligible for an IRA are gold, silver, platinum, and palladium. There are further restrictions on investment type, weight and purity.
A self-directed IRA is different from other types of IRAs because you can invest in assets such as real estate and precious metals. Whether you’re planning to start a Gold IRA from scratch or extend your current retirement account, the process starts with creating a self-directed IRA. If you want to hold gold outside of a retirement account (which means you can keep it at home), here’s more information on how to buy gold outside of an IRA. A key selling point that gold IRA companies like to tout in their marketing is that if you own a gold IRA, you own the physical precious metals.
A self-directed IRA is often referred to as a gold IRA or gold-backed IRA when it is specifically set up to store physical metals in the form of gold bars, coins, or polishing coins. According to the latest PLR, the rules that prohibit direct IRA investments in gold do not apply if the gold is held by an independent trustee. Maximize your retirement strategy, avoid tax penalties better, and take advantage of everything a gold-backed IRA can offer with these easy-to-understand gold IRA guidelines. Over the centuries, gold has proven to be one of the most stable assets, making it a fantastic candidate for your IRA.
Before you initiate the transfer, it’s important to calculate how much of your existing retirement savings you’d like to invest in your new Gold IRA. The custodian is responsible for securely storing your gold and precious metals until you ask your IRA gold custodian to sell or distribute your gold to you. They also perform the necessary administrative functions to ensure that your Gold IRA complies with all IRS regulations. Consult reputable outside sources or a fee-based financial planner for investment advice if you’re not sure whether a gold IRA is right for you.
The Gold IRA also sells you the gold bars and coins (or other precious metals) that you want to invest in your Gold IRA. If you’re considering a gold IRA, you should always do so as part of your wider investment strategy, taking into account your time horizon until retirement, your expected income needs, and your risk tolerance. There are minimum requirements for the fineness or purity of metals, as well as regulations that govern the size, type, and weight of your IRA gold.