A gold IRA or precious metal IRA is an individual retirement account in which physical gold or other approved precious metals are stored for the benefit of the IRA account holder. It works in the same way as a regular IRA, except that it holds physical gold coins or bars instead of paper assets. Precious metals IRAs are usually self-directed IRAs, a type of IRA in which the custodian bank allows you to manage more diverse investments in the account. Gold IRAs are a type of self-directed individual retirement account.
You can use them to invest in precious metals such as gold, silver, platinum, and palladium. That’s when you can enjoy the tax benefits that come with an IRA. Luckily, most gold IRA providers help you comply with these regulations and make your investment in precious metals retirement savings as easy as possible. 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.
Here’s how you can save money with a gold IRA that would otherwise have gone to the government. You probably also know that gold is a “collectible” and that IRAs are not allowed to own collectibles. While it’s legal to own gold or silver through an IRA or other retirement account with some restrictions, it’s not the best or most efficient way to own the precious metals. Therefore, gold IRAs require the involvement of a custodian bank, usually a bank or brokerage firm, to manage 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. 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. The ETF is also able to buy, store, and insure gold at a much lower price than you or an IRA custodian can. Gold may be the only precious metal you’ll find in all gold IRAs, but many also allow you to invest in other
precious metals.
The IRS has sent private letters to major gold ETFs saying that IRAs may own the ETFs. Gold IRA providers typically offer plenty of assistance with setting up and funding your account, as well as renewing existing retirement accounts. After doing this research, you’ll likely come to the conclusion that the gold or gold bars and coins shouldn’t be in your IRA. When your IRA provider offers a repurchase program, it ensures that you don’t have to bother selling your gold yourself
.
