Can I Buy Gold Coins With My IRA?
Physical gold does not generate income like stocks, bonds and ETFs do; rather it serves to protect wealth against inflation over long time periods by acting as an inflation hedge and conserving capital over the long run.
IRS rules permit an Individual Retirement Account (IRA) to contain precious metals like coins and bullion provided they fulfill certain conditions. Unfortunately, most standard custodians don’t allow physical gold and silver holdings so for these assets you will require a self-directed IRA account.
The IRS prohibits Individual Retirement Account (IRA) holders from investing in collectibles; however, an exception exists for certain gold coins and bullion that meet purity standards. To purchase such items, an accredited custodian and dealer are necessary in opening a checkbook control self-directed IRA account.
Custodians can then purchase gold for you and store it safely with an approved depository, saving fees to dealers such as premiums on coins and storage fees for an IRA account.
However, these accounts require extensive paperwork, reporting and compliance obligations; furthermore they don’t offer the same tax advantages as traditional or Roth IRAs; additionally if you cash out your investment before age 72 then an early withdrawal tax penalty applies – not usually worth having physical precious metals in your retirement nest egg; nonetheless it may be worthwhile researching this option first before making your decision.
Opening a precious metals IRA requires paying two fees: (1) one-time application and setup charges and (2) annual maintenance fees which usually range from $75 annually up to several hundred. These cover expenses such as sending statements and storing gold.
Reputed self-directed IRA companies typically provide transparent pricing on their bullion products and guarantee to buy back your coins at current wholesale prices, without charging additional fees or charging ancillary costs – plus boast outstanding customer service!
IRS rules do not permit Individual Retirement Accounts (IRAs) from investing in collectibles, although certain coins and bullion that satisfy strict purity requirements do fall within an exception. It should be noted that physical gold purchases count as distributions subject to 10% penalties if purchased before age 59.5 as the IRS considers this activity an immediate repurchase from your IRA account.
Investing your retirement savings in gold coins offers several options. Precious metal IRAs can be purchased through companies specializing in this form of investing and managed as custodians of your account, while securely storing precious metals in an insured facility. Furthermore, these firms will offer advice and guidance as to which varieties of coins would best meet your retirement savings goals.
Note that the IRS requires your precious metals be stored in an IRA-approved depository; purchasing and storing metals yourself at home would violate tax code regulations.
Reputable gold IRA providers that we suggest feature premium storage facilities and will insure all of your metals against theft or damage, and can help you select which bullion or collectible coins are ideal for your IRA.
Gold has traditionally been seen as an investment vehicle that provides protection from inflation, yet unlike stocks or bonds which produce income and yields over time, physical gold does not generate any returns of its own. Furthermore, owning physical gold doesn’t come cheap and requires proper storage to preserve value over time.
Due to these considerations, many investors choose IRA-approved precious metals companies for storage of their gold. Such companies typically provide access to an assortment of coins, bars and bullions that meet these standards. When choosing an investment company, transparency should always be of primary concern, since some may charge hidden one-time and monthly fees. Furthermore, some may sell numismatic coins at a premium over gold bullion, which may not make financial sense for all investors. As part of your evaluation of these companies, consider their track record and customer feedback. Also check whether they are accredited by organizations like Better Business Bureau; if so, then trust that they will provide quality service while keeping your precious metals secure. Finally, find a custodian that specializes in self-directed IRAs for added peace of mind.
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