The term gold IRA refers to a specialized individual retirement account (IRA) that allows investors to hold gold as a qualified retirement plan. 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 Gold IRA firm also sells you the gold bars and coins (or other precious metals) that you want to invest in your Gold IRA. A gold IRA firm will help you set up your account and sell you the gold (or silver) coins or bars that fund
the account. Your
chosen Gold IRA company will help you initiate this by reaching out to your plan administrator with a request to transfer funds to your new Gold IRA. Since you can also hold silver coins or gold bars, platinum and palladium in a gold IRA, a more correct term is, technically speaking, “precious metal IRA.” If this isn’t a priority for you, there are other ways to add precious metals to your portfolio besides a gold IRA. Thanks to the Taxpayer Relief Act of 1997, which expanded the allowed
precious metal holdings in IRAs to one, a half, a quarter, or a tenth of a U.
Most gold IRA companies recommend or require that you work with a specific custodian and custodian, although some give you the choice of two or more ounces. Although IRAs used to be limited to holding American Eagle gold and silver coins, IRAs can now invest in IRS-approved gold, silver, palladium, and platinum bars and coins. If you’re interested in setting up such an account, you’ll need to look for a specialized custodian or company that is able to handle all the documentation and reporting for tax purposes required to maintain a Gold IRA. The alternative to the tax deferral offered by a traditional or self-directed IRA is a Roth IRA, which is financed with money you’ve already paid taxes on
.
If you need advice, you should contact a trusted advisor rather than relying on representatives from the Gold IRA firm. Surprisingly, a gold IRA actually doesn’t just have to hold gold, you don’t have to hold any gold in one at all. Gold American Eagle Bullion Coins, however, are the only gold coins that are exempt from purity guidelines. Therefore, gold IRAs require the involvement of a custodian bank, usually a bank or brokerage firm, to manage the
account.
There are minimum requirements for metal fineness or purity, as well as regulations for the size, type, and weight of your IRA gold. Once you’re 59 ½ years old, you can liquidate the precious metals in your self-directed IRA for cash or take physical possession of your gold and silver without penalty
.
