Can You Buy Gold With IRA Money?

Can you buy gold with IRA money

Gold is considered a safe bet during times of economic unpredictability and inflationary pressures, providing investors with protection from inflationary pressures. Advocates for investing in gold argue it offers protection from inflationary rise.

IRS rules permit Individual Retirement Accounts (IRAs) to invest in precious metals; however, physical metals must be stored at an approved depository and cannot be kept at home. Furthermore, precious metals don’t generate income like stocks and mutual funds do and withdrawals before age 59 12 incur a 10% penalty fee.

Buying Gold With Your IRA Money

Many standard IRA custodians don’t handle physical gold investments; those that do, usually charge fees for setup and management as well as storage and insurance costs of the metals stored. Furthermore, any approved depository must store these investments.

Physical precious metals like gold are increasingly popular as an asset class in Individual Retirement Accounts (IRAs) due to their ability to protect against inflation while serving as diversifiers in retirement portfolios. Investors can choose among three different kinds of Gold IRAs: Traditional, Roth and SEP Gold IRAs.

The IRS restricts physical metals eligible for inclusion in an Individual Retirement Account to gold bullion coins and bars as well as certain legal tender pieces. Other metals are not permitted; for example slabbed or graded “rare” coins which the IRS considers collectibles rather than commodities. Also, to qualify as an IRA-approved coin it must meet certain purity standards; some dealers falsely advertise them as such when in reality they do not.


Transfers and rollovers are among the most effective methods of funding an SDIRA, enabling you to move money from existing employer plans or IRAs into your new account and invest it according to your own goals.

For a direct rollover, your plan administrator should send your distribution directly to the new IRA custodian, who will deposit the funds into your account while holding back 20% as security against taxes and penalties from the IRS.

Indirect rollovers may not be ideal. The IRS limits you to one per year and imposes a tight 60-day window; any distribution made outside this window becomes taxable unless an exception applies. While typically used with Roth IRAs, indirect rollovers may also apply to Traditional and SIMPLE IRA accounts – in all cases the new account must match up perfectly with its predecessor account type.


Physical gold differs from stocks, mutual funds and ETFs in that its investment does not produce income that would be subject to tax upon withdrawal. Gold investments provide an excellent way to diversify retirement portfolios and mitigate inflation risks; however it’s important to remember that precious metals won’t generate as many returns compared with some other investments.

Investors seeking to purchase gold coins or bullion must use an IRA custodian that specializes specifically in this form of investment. Most standard IRA custodians do not permit this, while those that do may charge additional fees – such as one-time setup costs, annual maintenance fees, seller’s fees (the markup on spot prices that an investor pays), storage costs and cash-out costs when closing an account when selling assets).

Investors also have the option to buy precious metals via a self-directed IRA, providing greater control of their investments; however, these accounts often entail higher set up and maintenance fees than standard IRAs.


IRA laws discourage investing in collectibles like artwork, rugs, antiques, metals, gems, stamps, coins and alcoholic beverages; as well as real estate and some closely held businesses. If you purchase collectibles or prohibited assets during any year before age 59 1/2 you will face a 10% penalty tax and be subject to redepositing funds within 60 days into another IRA account or they count as taxable distributions regardless if your beneficiary changes due to law compliance issues.

Raymond Banks Administrator
Raymond Banks is a published author in the commodity world. He has written extensively about gold and silver investments, and his work has been featured in some of the most respected financial journals in the industry. Raymond\\\'s expertise in the commodities market is highly sought-after, and he regularly delivers presentations on behalf of various investment firms. He is also a regular guest on financial news programmes, where he offers his expert insights into the latest commodity trends.

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