Can I Buy Gold With a SEP IRA?
Precious metals add security and diversification to any retirement portfolio, and Your Specialist can assist in setting up a SEP IRA by connecting you with an approved dealer/custodian that follows IRS rules regarding self-directed IRAs.
After making this choice, it is time to decide between segregated or commingled storage of your precious metal assets. Your Specialist can discuss all available storage solutions further.
What is a SEP IRA?
Simplified Employee Pension, or SEP IRA, is a tax-deferred retirement account specifically for self-employed individuals. Like the Traditional IRA, but with higher contribution limits and less restricted investments. SEP IRAs allow precious metals as well as stocks, bonds, mutual funds and cash as investments.
Annual contribution limits to a SEP equal 25% of an eligible employee’s salary; employers can also contribute directly on behalf of their businesses to an IRA SEP for this purpose.
SEP IRAs offer considerable flexibility and allow frequent changes to portfolio allocations, but any such adjustments must be carefully managed in order to minimize transaction fees and market timing risk. Precious metals held within an SEP IRA must be stored at an IRS-approved depository to comply with investment rules and regulations, while an experienced custodian must offer both segregated and commingled storage solutions, in addition to services tailored specifically towards SEP IRA custodial needs.
How can I buy gold with a SEP IRA?
An SEP IRA is an ideal retirement account for self-employed individuals looking to invest in physical precious metals. To open one, individuals can open a self-directed IRA at an IRS-approved custodian that specializes in precious metals investments and transfer any existing IRA or 401(k) funds over to it by following applicable IRS rules regarding transfer.
Once their new account has been opened, individuals can begin investing in gold products through SEP IRAs. Available metals include American Eagle coins, Canadian Maple Leaf coins and Austrian Philharmonic coins as well as 1 to 400 oz silver bars produced by manufacturers accredited by NYMEX COMEX LBMA or LPPM.
Birch Gold Group can assist in selecting an IRS-approved depository that offers both segregated and commingled storage options, and in finding and selecting an expert provider that offers these services.
How much can I buy?
There is no set limit to how much gold can be added to a SEP IRA; however, as with traditional IRAs, certain investment rules and restrictions must be observed when managing them.
IRS guidelines restrict which forms of gold bullion may be owned, including coins like American Eagle and Austrian Philharmonic as well as bars and rounds that meet IRS purity standards. Furthermore, SEPs that specialize in precious metals must meet different storage requirements than general self-directed IRAs.
Precious Metals SEP accounts typically require account holders to work with both a broker and custodian to purchase bullion. While the custodian cannot recommend any specific brokers, they can provide the names of trustworthy ones so individuals can select one of these brokers to buy precious metals for their SEP IRA account.
How do I buy gold with a SEP IRA?
SEP IRAs allow investors to invest in physical gold by transferring funds from traditional or Roth IRAs, or opening new accounts. You should select a custodian that specializes in precious metals and self-directed IRAs for secure storage and compliance assistance, with transparent fees and competitive fee structures.
IRS requirements stipulate that precious metals stored within an Individual Retirement Account must be stored in an approved depository that meets certain security and insurance standards. SEP IRA investors have their pick of physical gold investments such as coins such as American Eagle and Austrian Philharmonic coins as well as bullion bars that meet this purity standard of 99.5% purity.
Diversifying your IRA through exchange-traded funds (ETFs) and stocks associated with mining may offer greater exposure to precious metals market, and your Birch Specialist can assist in their evaluation. Your Specialist will also discuss benefits and considerations of each type of IRA so that you can make an informed decision.