The term gold IRA refers to a specialized individual retirement account (IRA) that allows investors to hold gold as a qualified retirement plan. Investors with gold IRAs can hold physical metals such as gold bars or coins as well as securities related to precious metals in their portfolio. Want to set up a self-directed precious metals IRA? Well, not all gold, silver, platinum, and palladium bars are eligible for an individual retirement account (IRA). The IRS only approved certain gold, silver, platinum, and palladium bars and
types of coins.
The following is a list of IRA-approved gold bars that can be purchased for a precious metal IRA. A gold certificate is simply a piece of paper that can be redeemed for physical gold. If you have a precious metal IRA, your IRA directly owns physical gold bars or coins, which you select and order directly. If you’re interested in setting up such an account, you’ll need to look for a specialized custodian or company that is able to handle all the documentation and reporting for tax purposes required to maintain a Gold IRA
.
Gold IRA companies can help you with this process, from choosing a custodian bank to arranging the storage of your precious metals. A silver IRA is also a traditional IRA, a ROTH IRA, a SEP IRA, a SIMPLE IRA, or an inherited IRA that is managed by the account holder himself and holds valid forms of physical silver coins or silver bars. First, you’ll need to buy IRA-qualified gold and choose an IRS-approved custodian that ensures that your gold complies with the regulations. There is no limit to the number of direct IRA transfers from one IRA custodian bank to another that you
can initiate.
IRA holders have been allowed to use funds in their IRA account to purchase eligible precious metals since 1998 following the passage of the Taxpayer Relief Act of 1997. One reason is that IRAs are not allowed to own collectibles and precious metals such as gold and silver are considered collectibles. Of course, you can buy IRA-approved gold outside of an IRA and keep it in your home or anywhere else. A precious metal IRA is simply a traditional, ROTH, SEP, SIMPLE, rollover, or inherited IRA that owns precious metals and may include gold, silver, platinum, or palladium. Gold IRAs help diversify a person’s retirement account and serve as a hedge against
specific financial factors.
A gold IRA is a type of self-managed individual retirement account that allows individuals to keep physical gold, silver, platinum, and palladium in the account as investments. Approved gold investments must fall under a pre-approved list (as described above) and be pure 24-carat gold bars (1 ounce — 400 ounce). Therefore, gold IRAs require the use of a custodian bank, usually a bank or brokerage firm, that manages the account. The Internal Revenue Service (IRS) allows holders of standalone IRA accounts to buy bars and coins minted from gold or other approved precious metals such as silver, platinum, or
palladium.
