The term gold IRA refers to a specialized individual retirement account (IRA) that allows investors to hold gold as a qualified retirement plan. 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. Ideally, keep your gold and other precious metals in your Gold IRA until you retire, as these accounts are designed for that. IRA rules for precious metals include some tax breaks, but that also means there are restrictions on when you can access
your Gold IRA assets.
The IRS offers individual retirement accounts, called IRAs, which are specifically designed to invest in this precious metal. But before you start storing gold bars, here’s what you need to know about gold IRAs. Gold IRAs are aimed at investors looking to diversify when saving for retirement. Precious metals such as silver and gold, platinum and palladium are considered a hedge against
inflation and stock market volatility.
Gold IRAs allow you to hold these precious metals in an individual retirement account and offer the same tax benefits as IRAs invested in mutual funds. Opening a self-directed IRA and investing in precious metals is a bit more complicated than opening a traditional IRA or Roth IRA. While gold may well have a place in a well-diversified portfolio, it’s important to weigh the risks of buying gold versus other assets. Many IRA precious metals companies sell IRA-approved silver, platinum, and palladium in addition to gold in their
IRAs.
A gold IRA is a product that is best for sophisticated investors with experience in precious metals investments. Mint, the corresponding authority of certain other countries, or named private minting companies can be listed in a gold IRA. The IRS has extremely detailed regulations that dictate which coins and bars can be stored in a gold IRA. Gold IRAs help diversify a person’s retirement account and serve as a hedge against
specific financial factors.
Most gold IRA companies will buy back gold or other precious metals that they’ve sold you, but these repurchase programs are typically conducted at a wholesale price, which is around a third cheaper than the selling price. Gold IRAs are individual retirement accounts that store physical gold as an investment instead of traditional stocks and bonds. If gold seems like a good choice for you, Sentell suggests investing no more than a third of your retirement savings in a gold IRA. A gold IRA must be kept separate from a traditional retirement account, although the rules, which include things like contribution limits and distributions
, remain the same.
The ability to use gold and other materials as securities in an IRA was introduced by Congress in 1997, says Edmund C. A gold IRA is unique because you own the actual precious metals, as opposed to stocks or fund shares of mining companies. The Gold IRA firm also connects you with the account manager, who handles the administrative tasks, as well as with the depositary institution that stores the precious metals you
purchase.
