You must opt for IRA qualified gold. Silver coins and bars must have a purity of 99.9%; platinum and palladium coins and bars must have a purity of 99.95%. The IRS sets these limits to ensure that investors buy high-quality metals that retain their value over the long term. In addition to the account depository, the Gold IRA Company coordinates the tasks of the custodian, the facility where the precious metals in your IRA are physically stored. A gold IRA consists of a single asset class, and by eliminating the diversity you get with a traditional investment portfolio, you’re at higher risk and depriving you of the opportunity to earn income.
If you need advice, you should contact a trusted advisor instead of relying on representatives from the Gold IRA company. As with other retirement accounts, if you withdraw gold from your IRA before you turn 59½, you must pay income tax on the value of the gold, plus a 10% upfront withdrawal penalty. When choosing the depository option that’s best for your IRA needs, look for one that meets those requirements while providing best-in-class security and services. Unlike traditional gold and silver purchases, you can’t store your IRA gold at home—your custodian must store it in an IRS-approved facility.
Once you’ve chosen your Gold IRA company, you’ll need to create an account, which you may be able to do over the phone or online. If you’re looking for different gold IRA companies, you should spend some time researching the warehouse they use to store your gold and where it’s located. There are minimum requirements for the fineness or purity of metals, as well as regulations that govern the size, type, and weight of your IRA gold. Roth Gold IRAs are self-managed IRAs with after-tax contributions, which extend the tax benefit to the period after you retire.
The IRS has strict contribution limits that restrict how much money you can deposit into your Gold IRA each year. Violation of these regulations will result in tax penalties. However, many investors are surprised that they can also save for retirement by buying gold in a tax-advantaged gold IRA. The unique thing about gold IRAs is that they allow investors to buy and own precious metals directly, rather than owning the assets indirectly, as with an ETF. In addition to annual fees and minimum investment amounts, Gold IRA companies may charge various other fees.
You may love South African Krugerrand gold coins, but you can’t add them to your IRA Gold account. A precious metal IRA is a self-managed IRA that allows you to hold certain types of precious metals (gold, silver, platinum, and palladium) as part of your overall asset mix.