Not all gold investments can belong to an IRA. The basic rule is that an IRA cannot own a collectible and precious metals are defined as collectibles, regardless of whether it is an investment in gold bars or coins. Luckily, there are exceptions to the general rule for gold, silver, platinum, and palladium, which are held in specific forms. Just as with silver, not all gold bars are eligible for a Gold IRA account. Approved gold investments must fall under a pre-approved list (as described above) and be pure 24-carat gold bars (
1 ounce — 400 ounce).
For more information, see IRS publications 590-A %26 590-B. According to the IRS, eligible gold can be included in your IRA as long as it is physically owned by a bank or an IRS-approved trustee that is not a bank. Record gold sales combined with the appearance of many more companies processing and simplifying transactions have made investing in a gold IRA a one-stop shop. Companies like Oxford Gold Group and American Hartford Gold can help you set up an IRA and arrange to store your gold
.
Many investors choose gold to diversify their portfolio, either by investing in a gold IRA or buying the metal outright. Physical gold can play an important role in a well-diversified retirement portfolio. However, there are certain rules to follow if you want to take advantage of all the benefits that an individual retirement account (IRA) made of gold or other precious metals can offer. Keeping your IRA gold at home can be considered an acceptance of a distribution, meaning you’ll lose your tax-deferred benefits and face a penalty if you’re under 59½ years of age. A gold IRA is a type of IRA that allows investors to own physical gold, silver, platinum, and palladium
.
Money deposited into a traditional IRA is deductible up to the allowed annual limits, while cash in a Roth IRA grows tax-free and can be withdrawn tax-free in retirement. So if your portfolio consists of both gold and paper investments, a loss on the gold side is offset by the gain in other assets. During his tenure as director of the mint, according to Moy, there was little demand for gold IRAs, as it was a very complicated transaction that only the most stubborn investor was willing to carry out. You may love South African Krugerrand gold coins, but you can’t add them to
your IRA Gold account.
When gold rises, you must also decide whether you would buy at or near the top of the market if you invested at that time. To own gold, whether in coins or gold bars, in an IRA, you need a genuine, self-directed IRA offered by a few custodian
managers.
