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 gold coins or bars instead of paper assets. Precious metals IRAs are usually self-directed IRAs, a type of IRA in which the custodian bank allows you to manage more diverse investments in the account. Gold IRAs are a type of self-directed 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 that come with 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. You probably also know that gold is a “collectible” and that IRAs are not allowed to own collectibles
.
Investors with gold IRAs can hold physical metals such as gold bars or coins as well as securities related to precious metals in their portfolio. The IRS has sent private letters to major gold ETFs saying that IRAs may own the ETFs. The Internal Revenue Service (IRS) allows holders of standalone IRA accounts to buy bars and coins minted from gold or other approved precious metals such as silver, platinum, or palladium. With multiple Gold IRA providers to choose from, it’s helpful to know which factors to consider when making a decision.
Fortunately, most gold IRA providers help you comply with these regulations and make your investment in precious metals retirement savings as easy as possible. After you’ve funded your account, you can tell your IRA custodian which gold bars you should buy (and how much). Given the many scams and misleading advertising, it’s important to do your research before opening a Gold IRA account. To own gold, whether in coins or gold bars, in an IRA, you need a genuine, self-directed IRA offered by a few custodian
managers.
After doing this research, you’ll likely come to the conclusion that the gold or gold bars and coins shouldn’t be in your IRA. There are currently a wide variety of precious metals that meet the minimum purity requirements that are acceptable for inclusion in a Gold IRA account. Although investors can undoubtedly buy physical gold and store it in a home safe, the IRS strictly prohibits this when it comes to gold (and other precious metals) purchased by the IRA. Gold IRA providers typically offer plenty of assistance with setting up and funding your account, as well as renewing existing retirement
accounts.
