While most IRA investors invest in more traditional assets, such as stocks, bonds and funds, the tax code allows investing in precious metals, such as gold and silver, through specialized IRA accounts. To use an IRA to invest in gold, you'll need to follow two guidelines from the IRS. First, you can only invest in gold approved by the IRS. While the list of approved options changes, the IRS states that they must be “highly refined ingots.” If you want to have physical gold in an IRA, it can't be your regular account.
It has to be a special, separate IRA, called a Gold IRA. You can't keep IRA-eligible gold in your home or in a local safe deposit box. While vaults like this exist, gold ingots are much more accessible than the average gold owner imagines. After doing this research, you'll probably come to the conclusion that gold or ingots and coins shouldn't be in your IRA.
Currently, there are a variety of precious metals that meet minimum purity requirements and are acceptable for inclusion in a gold IRA account. As long as there is gold in this world, it's not too late to open your own self-directed precious metals IRA. You must also select a precious metals dealer to make gold purchases for your IRA (your trustee may recommend one). 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 precious metals.
While the rules governing retirement accounts and gold IRAs may seem confusing, experienced U. Account Executives can also buy, store and insure gold at a much lower price than what you or the trustee of an IRA can afford. Unlike withdrawing funds from a traditional retirement account, a gold-backed IRA allows you to keep a powerful physical asset in your hand, gold that you can keep, sell at a later time, use as currency in times of crisis, or pass on to your family members. To own gold, whether in coins or in ingots, in an IRA you need a truly self-directed IRA that offers a few trustees.
Gold IRA companies vary in experience, service, and costs, so be sure to compare your options before proceeding with opening an account. However, American Eagle Bullion gold coins are the only gold coins that constitute an exception to purity guidelines. Even so, a gold IRA can be a good option for investors who want to diversify their retirement accounts and, in addition, take advantage of the hedging advantages offered by the yellow metal over other financial assets, such as paper money and stocks. Gold coins, ingots and cartridges eligible for an IRA must meet a series of requirements set forth in the Internal Revenue Code in order to be placed in a self-directed IRA.
Gold and silver ingots and cartridges are also allowed in an IRA when they are 99.9% pure. Keep in mind that not all autonomous IRA depositories offer the same investment options, so make sure that physical gold is one of your offerings before opening an account.