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. You can store coins or gold bars in a precious metal IRA. Despite the colloquial term “gold IRA,” you can hold silver, platinum, and palladium in this account. Given that the stock market typically rises by around 7% in an average year, it would be rare for a gold IRA to outperform other retirement investments.
The practical problem is finding an IRA trustee who is willing to set up a self-governing IRA and facilitate the physical transfer and storage of precious metals assets. You can sell the gold or precious metals in your IRA anytime without taxes or penalties, unless you withdraw the money from your IRA. 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. If you die, your IRA and assets are transferred to your IRA beneficiary or beneficiaries.
This usually takes the form of a transfer, which is first signed by the account holder and then sent by the receiving custodian to the releasing custodian to request a partial or full transfer of IRA funds or assets. It’s important to be aware of all costs and expenses before you buy physical gold to keep in an IRA. 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). The rules for withdrawing from a Gold IRA are similar to other individual retirement accounts.
One option is to set up a self-directed gold IRA, which allows you to buy physical gold and silver with retirement funds. For a gold IRA, you need a broker to buy the gold and a custodian to create and manage the account. Self-managed IRAs are generally more expensive than other types of retirement savings accounts because they require additional supervisory and administrative work. Gold IRAs are usually defined as alternative investments, meaning that they are not traded on a public stock exchange and require specialized expertise to value them.
Willing trustees can be found via an Internet search and ensure the physical storage of precious metal assets owned by IRAs. There are plenty of rules and regulatory hurdles that you’ll need to overcome if you’re thinking about buying a Gold IRA. When you choose a reputable custodian bank and warehouse, you can rely on the safety of your IRA precious metals.
