To invest IRA funds in gold, you must set up a self-directed IRA, a type of IRA that the investor manages directly and that is allowed to own a wider range of investment products than other IRAs. Gold IRA rules require that you store eligible precious metals with a national depositary, bank, or IRS-approved trustee. Your custodian bank can refer you to an approved institution and process the gold transfer as part of setting up your Gold IRA. Gold IRAs are a special type of self-directed IRA that allows you to invest in physical gold and other precious metals, such as silver, platinum, and palladium.
Investing in a gold IRA requires the services of a custodian bank, a broker to purchase gold, and an approved depositary to store gold. Like other self-directed IRAs, Gold IRAs can be Traditional or Roth. If any of the above IRA-eligible gold coins have been assessed for condition by a certification authority (such as the Professional Coin Grading Service), they are generally classified as “collectibles” by the IRS and are therefore not allowed in IRAs. It’s important to be aware of all costs and expenses before you buy physical gold to keep in an IRA.
A gold IRA is an alternative investment option for retirement savers who want to own gold as an inflation hedge or to diversify their assets outside the stock market. IRS rules allow funding a Gold IRA with funds from another IRA, 401 (k), 403 (b), 457 (b), or Thrift Savings Plan. Two of the most commonly used types of gold approved by the IRA include American Eagle coins and precious metals and Canadian Maple Leaf coins. 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.
Many of the custodians and brokers that open established IRAs that invest in traditional assets are unable to open and operate an SDIRA, including a gold IRA. Even with a long time horizon, gold investors have no guarantee of making money from their investment, particularly if you’re planning to rely on a gold IRA company’s repurchase program to sell your gold if you need to accept distributions from that 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. To do this, you’ll need an individual gold retirement account, commonly referred to as a Gold IRA, although this account has its own additional rules and fees.
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. Popular gold IRA companies include Orion Metal Exchange, Birch Gold Group, Red Rock Secured, Gold Alliance, Oxford Gold Group, and Goldco. Once you’ve opened a self-employed gold IRA, you can transfer cash to the account to fund your purchase of physical gold. If you’re interested in owning gold or investing in its future value, a self-directed gold IRA account could be a good way to do so.