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 investment coins or bars instead of paper assets. In a gold IRA, you can hold real physical gold. It must comply with IRS standards and be held by the IRA trustee, not the IRA owner.
It must also be kept in an IRS-approved depository. Gold IRA rules require that you store eligible precious metals with a national depositary, bank, or IRS-approved trustee. Your custodian bank can refer you to an approved institution and process the gold transfer as part of setting up your Gold IRA. These funds buy up a basket of gold-related investments, such as stocks in various gold mining companies.
Your designated Allegiance Gold team members, both IRA Specialists and Senior Portfolio Managers, will manage the entire process of setting up and funding your Gold IRA or custom precious metals IRA. Precious metals such as silver and gold, platinum and palladium are regarded as hedges against inflation and stock market volatility. Gold IRAs allow you to hold these precious metals in an individual retirement account. You can choose a mix of gold and silver, and some gold IRA companies also offer platinum and palladium, which you can buy and hold in your IRA. Gold IRAs follow the same general rules as traditional IRAs when it comes to tax benefits (traditional or Roth), contribution limits, and payout rules.
Unlike withdrawing funds from a traditional retirement account, a gold-backed IRA allows you to have a powerful physical asset in your hands, gold that you can keep, sell at a later date, use as currency in times of crisis, or pass on to family members. We took into account the reputation, transparency, and quality of the online education and resources they offer from each Gold IRA company. The Internal Revenue Service (IRS) allows holders of self-managed IRA accounts to purchase bars and coins minted from gold or other approved precious metals such as silver, platinum, or palladium. Most gold IRA companies buy back gold or other precious metals they’ve sold you, but buybacks are generally made at the wholesale price, which is around a third cheaper than the retail price.
Make sure you check the list of approved gold objects with your custodian manager before you transfer gold to your IRA. Money Reserve’s Gold Standard Precious Metals IRA program combines the traditional protection of gold and silver with the modern convenience of an IRA. You can invest in gold stocks, such as stocks of gold mining companies or gold licensing companies, which help finance mines. If you’re interested in setting up such an account, you’ll need to look for a specialized custodian or firm that is able to manage all documentation and reporting for tax purposes that are required to maintain a Gold IRA.
Now that your application is complete and your self-directed IRA is open, funding your Gold IRA couldn’t get any easier. IRA-eligible gold coins, bars, and coins must meet a number of requirements set out in the Internal Revenue Code in order to be stored in a self-directed IRA. The IRS does not allow popular gold coins such as the South African Krugerrand or British sovereign coins to be stored in a gold IRA.