A gold IRA or precious metal IRA is an individual retirement account in which physical gold or other approved precious metals are stored for the benefit of the IRA account holder. It works in the same way as a regular IRA, except that it holds physical investment coins or bars instead of paper assets. Precious metals IRAs are usually self-managed IRAs, a type of IRA in which the custodian bank allows you to manage a more diverse range of investments in the account. Gold IRAs are a type of self-managed individual retirement account.
You can use them to invest in precious metals such as gold, silver, platinum, and palladium. That’s when you can enjoy the tax benefits of an IRA. After doing this research, you’ll likely come to the conclusion that the gold or gold bars and coins shouldn’t belong in your IRA. The IRS has issued private letter rules to major gold ETFs, which state that IRAs may own the ETFs.
The ETF is also able to buy, store, and insure gold at a much lower price than you or an IRA custodian bank. With multiple Gold IRA providers to choose from, it’s helpful to know what factors to consider when choosing one. After you’ve funded your account, you can let your IRA custodian know which gold bars you’d like to buy (and how much). To own gold, whether in the form of coins or precious metals, you need a genuine, self-directed IRA in an IRA, which is offered by a few custodian banks.
You probably also know that gold is a “collectible” and that IRAs are not allowed to own collectibles. 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. The Internal Revenue Service (IRS) allows holders of self-managed IRA accounts to purchase bars and coins minted from gold or other approved precious metals such as silver, platinum, or palladium. Gold may be the only precious metal you’ll find in all gold IRAs, but many also allow you to invest in other precious metals.
Given the many scams and misleading advertising, it’s important to do your research before opening a Gold IRA account. Gold IRA providers typically offer extensive assistance with setting up and funding your account, as well as renewing existing retirement accounts. If you’re interested in setting up such an account, you’ll need to look for a specialized custodian or firm that is able to handle all the documentation and reporting for tax purposes required to maintain a Gold IRA. If your IRA provider offers a repurchase program, this ensures that you don’t have to bother selling your gold yourself.
Here are a few ways you can save money with a Gold IRA that would otherwise have gone to the government.
