Gold IRAs have higher maintenance fees than other types of IRAs because of the additional costs associated with investing in gold. In addition to brokerage fees and account setup fees, the investor must pay additional costs to store and insure the precious metal. Rules against holding collectibles Tax legislation prohibits IRA holders from investing in life insurance, stock in an S corporation, or collectibles. Some types of gold coins are classed as collectibles and would break the rules.
What is confusing and frustrating is that some gold coins and types of gold bars are allowed, others are not. And it’s not like the IRS keeps a master list of what’s allowed and what isn’t. Also, make sure you carefully review any IRA specialty companies, custodian banks, and storage facilities that you use to implement your strategy. If you feel pressured to buy a Gold IRA for any reason, you might want to keep looking for a better company.
Physical gold wasn’t always an investment option for retirement savers who wanted to benefit from an IRA. A good Gold IRA company will help you sort out the paperwork and stay on board to be available to you as a personal resource even after your purchase (known as a “trade”) is complete. Unfortunately, it is well known that some Gold IRA companies are known for using questionable tactics to pressure potential customers, as the Gold IRA industry is unregulated. These IRAs must be standalone but have the same contribution limits and distribution rules as other IRAs.
It’s not too complicated, but setting up a Gold IRA account requires a few key steps. Gold IRAs are very common these days, but traditional financial advisors still generally don’t provide their clients with any information about them. The real benefit of a gold IRA is combining the benefits of precious metals yourself listed above with the additional benefits that an IRA can bring. A specialist Gold IRA provider (often referred to as a “Gold IRA company”) knows all the ins and outs of setting up and running this type of account.
The custodian is an IRS-approved financial institution (bank, trust company, broker), but many financial services and mutual fund companies that process regular IRAs do not use the self-directed version. People who would like to invest in gold but don’t want the hassle of setting up a gold IRA have other options. Specialized custodian banks such as Fidelity, Schwab or TD Ameritrade do not manage physical gold in an IRA. Those considering a gold IRA must also have the time and knowledge to make good decisions about their SDIRA.
Still, a gold IRA can be a good option for investors who want to diversify their retirement accounts and also take advantage of the hedging benefits that the yellow metal offers over other financial assets, such as fiat currency and stocks.