Can You Contribute Gold Coins to an IRA?
An Individual Retirement Account, or IRA, is a popular form of retirement savings account that allows contributors to defer taxes until retirement. There are various kinds of IRAs – both traditional and Roth options are available – offering deferral of taxes on contributions made until you retire.
Add gold coins to your IRA as an exciting way of diversifying your portfolio, but be mindful of the rules associated with investing in precious metals.
IRA-Eligible Coins
Gold is an investment, and you can hold it in a retirement account. But don’t hold onto that gold nugget you found washed up on the beach – instead, consider opening an SDIRA (self-directed individual retirement arrangement).
IRS standards establish specific standards for precious metals that can be included in an SDIRA, including fineness and purity requirements and an exclusion for collectible coins. To meet these specifications, invest in coins or bullion bars produced at government mints with certified quality assurance practices to meet these regulations.
Keep in mind that unlike stocks or bonds, physical gold does not generate income, and must be stored safely by your SDIRA custodian. Storage fees can quickly add up and reduce returns significantly; also keep in mind that gold may be less liquid than stocks in an emergency scenario, making investing through an approved third-party precious metals depository more suitable.
IRA-Eligible Bars
Gold bullion bars may also be added to an IRA in a similar manner as coins; they must meet IRS standards regarding purity specifications and backing by recognized mints or manufacturers, in addition to being stored at an IRS-approved depository.
Most gold IRA dealers partner with a trusted storage provider that meets IRS regulations for keeping precious metals secure. Most providers also charge annual fees that include insurance and storage costs.
Addition of precious metals to an IRA can be accomplished either indirectly through rollover or directly via transfer, with either option offering up temporary receipt of funds from one IRA to the next with a 60 day window for reinvested back into their new Precious Metals IRA without incurring tax consequences and penalties. It is usually best undertaken with assistance from a trusted precious metals dealer with expertise in industry standards and IRS regulations governing precious metals accounts within an IRA account.
IRA-Eligible Custodians
Gold IRAs are specifically tailored for physical precious metals. For an IRA to be eligible, coins must adhere to strict production and purity standards established by the IRS; common examples of such coins are American Eagles, Australian Kangaroo/Nuggets and Austrian Philharmonics – any coins considered collectible such as South African Krugerrands are ineligible for inclusion.
To open a Gold IRA, an approved custodian is needed. They will charge annual administration and recordkeeping fees as well as storage and insurance fees.
Scottsdale Bullion & Coin works with top-rated, custodian-approved metals dealers to offer our customers a comprehensive solution. Our Precious Metals Advisors can assist in selecting coins and bars suitable for your investment goals as well as meeting IRS guidelines – they’ll even handle paperwork on your behalf! You can open a Gold IRA with funds from any traditional or Roth IRA as well as from 401(k), 403(b), or 457 plans.
IRA-Eligible Storage
The IRS stipulates that gold IRA assets be stored in an approved depository facility. Such an off-site depository must meet specific security standards (such as Class M vault doors). Metals must also be insured against theft and mismanagement.
Individuals can opt for either commingled or segregated storage options when selecting their retirement accounts. While the former involves mixing assets among all IRA holders, segregated storage provides greater security by keeping each precious metal separately and assigning each coin or bar with an individual serial number.
Importantly, IRA account holders are never permitted to take physical possession of their gold or other precious metals held within an IRA account. Should this occur, the IRS would treat this holding as a distribution and begin withholding taxes and penalties immediately. Hiring a reliable gold IRA company can help avoid these issues as it will ensure your gold meets all requirements and is stored at an approved depository.
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