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. Want to set up a self-directed precious metals IRA? Well, not all gold, silver, platinum, and palladium bars are eligible for an individual retirement account (IRA). The IRS only approved certain gold, silver, platinum, and palladium bars and types of coins. The following is a list of IRA-approved precious metals that can be purchased for a precious metal IRA.
A precious metals IRA is an individual retirement account that allows you to invest in physical metals. They are sometimes referred to as gold IRAs, but silver, platinum, and palladium can also be purchased within these accounts. Some gold IRA companies argue that certain coins are included in a precious metal IRA. However, several of these companies were investigated by the government for misleading customers and selling numismatic coins aggressively in exchange for gold bars. Numismatic coins pay higher commissions to the gold company, but precious metal bars reflect the spot price of the precious metal more directly.
Since precious metals are an alternative investment, opening a gold or precious metal IRA is a more complex process than setting up a regular IRA. You can buy gold and precious metals directly, but with an IRA, those saving for retirement can take advantage of valuable tax benefits. Several companies are promoting gold IRA arrangements based on the checkbook control strategy, in which the IRA does not directly own the metals but owns a limited liability company (LLC) through which the taxpayer buys and stores the metals. 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.
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. Since gold and precious metals are considered alternative investments by the IRS, they can only be held in self-directed IRAs. Opening a self-directed IRA and investing in precious metals is a bit more complicated than opening a traditional IRA or Roth IRA. Scottsdale Bullion %26 Coin has simplified the process of setting up a gold and silver IRA in six easy steps.
Gold and precious metals IRAs could be a good choice for investors as long as they understand the steps and costs involved, says Daniel Milan, managing partner of Cornerstone Financial Services, LLC in Southfield, Michigan. To invest in precious metals via a self-managed IRA, you must set up a valid IRA and have cash in the IRA. There are currently a variety of precious metals that meet the minimum purity requirements allowed for inclusion in an IRA Gold account. Some IRA gold and precious metals providers only work with a limited number of custodian banks and depositories.
