What Gold is IRA Eligible?
Physical gold bullion and coins make an excellent long-term, buy-and-hold investment for an IRA, though the IRS does require their segregated storage with a trusted custodian.
Investors should avoid keeping gold or other precious metals at home as doing so triggers taxes and penalties that must be paid to the government.
Coins
Gold makes an excellent long-term investment that should be purchased and held onto for decades, making it a suitable fit with an IRA. Furthermore, its value tends to have an inverse relationship with that of the dollar which provides additional inflation protection.
However, it’s essential to remember that not all coins qualify as IRA eligible investments. In order for precious metals to qualify as an investment option for an IRA account, they must adhere to certain standards set by the IRS – these standards include purity standards as well as complying with regulations concerning collectible coins.
Taxpayer Relief Act of 1997 expanded the types of precious metals allowed inside an IRA, including coins, bars, and rounds that meet minimum fineness requirements and are produced by either a national government mint or accredited refiners, assayers or manufacturers. When adding gold to your retirement portfolio it’s wise to select only IRA-eligible bullion bullion products.
Bars
Gold bars offer more straightforward investing than coins and are priced according to their gold weight alone. To be eligible for an IRA, eligible gold bars must come from NYMEX, COMEX or LME accredited refiners, assayers or manufacturers and meet specific fineness requirements – smaller bullion bars must meet exact weight specifications as well. IRA-eligible collectible coins or bars do not qualify.
Precious Metals IRAs, like traditional IRAs and 401(k) plans, allow investors to invest with pretax funds before taxes are deducted when making distributions at retirement age or older. Distributions from this account will not incur taxes when distributed as they will no longer count against your retirement account contribution limit.
Most investors open a Gold IRA to diversify their portfolios and guard against inflation. Your allocation should depend on your personal financial circumstances, time horizon and risk tolerance; those closer to retirement should invest more of their portfolio into precious metals to limit stock market overexposure. When looking into investing gold consider opening an independent Gold IRA with a trusted precious metals custodian/depository.
Rounds
Gold bullion rounds resemble coins in many respects but are produced by private mints instead of the federal government, offering greater liquidity and reflecting gold prices accurately, making them a suitable investment option for IRA investors.
Gold bars, ingots, and rounds produced at an IRS-approved refinery or national government mint meeting minimum fineness requirements can be included as eligible precious metal investments in an IRA account. They can be purchased from various reputable dealers.
Self-directed IRA providers frequently offer the option to view physical precious metals held in their depositories at an additional fee, providing investors with a valuable feature for being able to see their physical holdings. This feature can provide added peace of mind.
Addition of an IRA-eligible gold to your retirement portfolio can help diversify investments and reduce risk in uncertain times. To start this journey, request our free Wealth Protection Kit now – you’ll gain all the knowledge required for opening a Precious Metals IRA while our experts assist in setting it up so it meets IRS guidelines.
Bullion
The IRS is very particular about what can be placed into a gold IRA, disallowing Numismatic or collectible coins but accepting regular Bullion Coins that meet IRS guidelines in terms of weight and purity – such as American Eagles, Canadian Maple Leaves or Austrian Philharmonics.
Gold bars and rounds are increasingly becoming more affordable alternatives to coins due to their easier transport and reduced fees when going through customs.
No matter the form of precious metal you decide to invest in, all IRA-eligible bullion must be stored safely. OWNx offers world-class non-bank depository facilities located in Delaware and Texas (USA) that have earned international renown for their secure storage facilities – giving you peace of mind as these depository facilities have also been approved by both SSA and Brink’s.
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