The four precious metals that may be held in an individual retirement account are gold, silver, platinum, and palladium, as long as they are IRS-approved coin or ingot products. You can buy gold coins and gold bars, silver, palladium, and other precious metals that meet specific fineness requirements with your IRA. Current law allows transfers from IRAs as well as transfers from qualified retirement plans, such as 401 (k), 401 (a), 403 (b), 457, Thrift Savings Plan (TSP), and pensions. The IRS has issued private letter rules to major gold ETFs, which state that IRAs may own the ETFs.
When it comes to gold coins or gold bars, there are several gold products to choose from that you can add to your IRA account. Adding precious metals to an IRA account may provide investors with additional diversification and growth opportunities. Self-managers do not provide investment advice, but they do provide administrative and reporting services and buy precious metals on your behalf in accordance with your instructions via your IRA account. Individual retirement accounts (IRAs) offer tax-deferred or tax-free growth, meaning that investments made with an IRA can be larger than similar investments made outside an IRA.
You then complete all the paperwork received by the plan administrator and ask the plan administrator to transfer your retirement assets to your new Equity Trust IRA account number. However, there are very strict rules and regulations for precious metals investments with an IRA account. You probably also know that gold is a “collectible” and that IRAs are not allowed to own collectibles. At age 59½, an IRA beneficiary can start receiving penalty-free distributions from their account.
This is a prohibited transaction, as an IRA owner is not allowed to make any purchase or sale transactions with the IRA. All products that fall outside these ranges, with the exception of American Gold Eagles, are not eligible for IRA contributions. If you have an existing IRA or 401 (k), you can fund an IRA by transferring either the full amount or a portion of it. The ETF is also able to buy, store, and insure gold at a much lower price than you or an IRA custodian bank.
Gold bars and round gold and silver coins are also allowed in an IRA if they have a fineness of 99.9%. After you open your account with Equity Trust, you’ll contact your previous employer to discuss the paperwork required to apply for an IRA. 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.