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. Not all gold investments can belong to an IRA. The basic rule is that an IRA cannot own a collectible, and precious metals are defined as collectibles, regardless of whether the investment is in gold bars or coins. Luckily, there are exceptions to the general rule for gold, silver, platinum, and palladium, which are held in specific forms. Gold IRA companies streamline the account opening process.
They sell gold coins, gold bars, and the like, but they don’t offer IRA investment advice (regardless of what their websites or other marketing materials might suggest). When choosing, it is important to do your research. For more information on what to look for when choosing a Gold IRA company, check out Money’s Guide to the Best Gold IRA Companies. A gold IRA can give you the tax benefits of a traditional retirement account, but you must comply with IRS regulations or risk fines and penalties.
To invest IRA funds in gold, you must set up a self-directed IRA, a type of IRA that the investor manages directly and that is allowed to own a wider range of investment products than other IRAs. Record gold sales combined with the appearance of many more companies processing and simplifying transactions have made investing in a gold IRA a one-stop shop. People who believe that physically owning gold or other precious metals is safer can achieve that peace of mind with a gold or silver IRA. 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.
While it’s legal to own gold or silver through an IRA or other retirement account with some restrictions, it’s not the best or most efficient way to own the precious metals. This is a prohibited transaction, as an IRA owner is not allowed to make any purchase or sale transactions with the IRA. A gold IRA is a type (pun intended) of an individual retirement account (IRA) that allows investors to own physical gold, silver, platinum, and palladium, rather than common assets such as cash, stocks, and bonds to which regular IRAs are limited. To avoid running afoul of tax rules for proprietary transactions, self-governing IRAs, including gold IRAs, must have an IRS-approved custodian bank.
Or, if you have a traditional retirement savings account and want to increase your exposure to gold, read here how you can buy a gold ETF, an exchange-traded fund that tracks the performance of gold. A gold IRA is an alternative investment option for retirement savers who want to own gold as an inflation hedge or to diversify their assets outside the stock market. Since gold is bought the most frequently, the overarching term gold IRA is most commonly used as industry slang to refer to a retirement account that contains any combination of precious metals. IRS rules allow funding a Gold IRA with funds from another IRA, 401 (k), 403 (b), 457 (b), or Thrift Savings Plan.
Buying gold in an individual retirement account (IRA) is touted as a way for savers to diversify their investments. If gold seems like a solid choice for you, Sentell suggests investing no more than a third of your retirement savings in a gold IRA.
