There are two ways to invest in gold using an IRA. One option is to set up a self-directed gold IRA, which allows you to buy physical gold and silver with retirement funds. A gold IRA can give you the tax benefits of a traditional retirement account, but you must comply with IRS regulations or risk fines and penalties. Buying physical gold for a retirement account can also be more expensive than investing in assets such as stocks, bonds, or mutual funds.
It’s important to be aware of all costs and expenses before you buy physical gold to keep in an IRA. While you can technically set up an LLC and control your IRA purchases yourself (as long as you meet some strict requirements), you still can’t store the gold in your home. Over the centuries, gold has proven to be one of the most stable assets, making it a fantastic candidate for your IRA. These funds buy up a basket of gold-related investments, such as stocks in various gold mining companies.
If you’ve considered investing in gold and other precious metals, such as silver, platinum, and palladium, you may have seen ads for so-called “home storage gold” IRAs. 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. An IRA backed by gold allows investors to invest their money in a wider variety of assets, but they are still subject to the same contribution limits as traditional retirement accounts. Once you’ve opened a self-employed gold IRA, you can transfer cash to the account to fund your purchase of physical gold.
Or, if you have a traditional retirement savings account and want to increase your exposure to gold, read here how you can buy a gold ETF, an exchange-traded fund that tracks the performance of gold. Gold IRAs follow the same general rules as traditional IRAs when it comes to tax benefits. You can choose between a traditional IRA or Roth IRA contribution limit and withdrawals. People who believe that physically owning gold or other precious metals is safer can achieve that peace of mind with a gold or silver IRA. There are plenty of rules and regulatory hurdles that you’ll need to overcome if you’re thinking about buying a Gold IRA.
While you can gain exposure to gold in a normal retirement account by owning stocks or funds, you can’t hold the physical asset in an IRA or 401 (k). In a regular IRA, you can’t own physical gold, although you can invest in a wide variety of assets that are invested in gold, such as gold stocks or gold ETFs. If you just want to buy gold or silver, here’s what you need to know about buying gold outside of an IRA. One important rule to know about storing physical gold in an IRA is that your precious metals MUST be stored at an approved depository institution such as the Delaware Depository Service Company or Brink’s Global Services, not in your home or in a safe.
