Can You Hold Precious Metals in an IRA?

Can you hold precious metals in an IRA

Precious metals provide an effective protection against inflation and currency devaluation as well as geopolitical instability. When investing in gold and silver via an IRA account, however, a few key considerations must be addressed first.

First, assess the fees charged by a custodian. These typically consist of setup, annual maintenance and storage fees.

Taxes

Though precious metals in an IRA offer investors certain tax benefits, it’s important to remember that unlike stocks and bonds, precious metals don’t generate income and may require liquidation prior to withdrawing them in retirement in order to pay any income taxes that may be due.

Precious metal investments follow the same investment rules and limits as any IRA account. You must use a self-directed IRA account in order to hold physical precious metals, and choose an approved custodian (i.e. banks, trust companies or similar institutions approved by the IRS) who will store your precious metals.

IRS rules permit Individual Retirement Accounts (IRAs) to invest in gold, silver, platinum and palladium coins or bullion that meet specific purity standards. LCR Coin’s website features listings of such gold and silver coins; however numismatic coins tend to carry higher commission fees so investors should opt for bullion bars that reflect spot price of precious metals instead.

Investment options

Many financial advisors suggest investing in precious metals can diversify your retirement portfolio. Gold can act as an inflation hedge and can increase wealth over time, but before making any decisions it’s essential to consult a professional first.

Your options for investing in precious metals include self-directed IRAs, traditional and Roth IRAs as well as exchange-traded funds that track precious metal prices. As with all investments, however, only invest a portion of your IRA in precious metals to avoid overexposure.

There are various precious metals you can hold in a self-directed IRA, including gold bullion and coins (American Eagle coins and PAMP Suisse bars, for instance). To satisfy IRS purity standards (99.9% or greater purity), IRS requires your precious metals meet strict purity criteria – for optimal results it’s wise to choose a dealer accredited by either American Numismatic Association or Industry Council for Tangible Assets trade associations.

Storage options

Precious metals offer an appealing investment option during times of economic instability, typically rising when stocks fall in value. Although more volatile than traditional IRA assets, including precious metals in your IRA may help diversify and protect against inflation.

A popular method for storing precious metals is depositing them with their custodian, who has access to a secure depository. This approach offers both secure and cost-effective storage; segregated or allocated storage options may be chosen depending on your individual needs and risk tolerance.

Store gold at home isn’t recommended by the IRS; depository storage must meet certain regulations; otherwise you could face serious fines and penalties. Your IRA custodian can recommend one, or you can select one yourself that meets those regulations – coins must be encapsulated while proof coins must have their original mint packaging with certificate of authenticity attached.

IRA custodians

An individual retirement account (IRA) in precious metals can be an excellent way to diversify your retirement savings, and there are various companies offering such accounts. Some providers specialize in providing access to an extensive range of precious metals while others only specialize in gold and silver options; it is important to do your research when searching for the ideal provider that meets your needs.

The IRS mandates that precious metals held within an IRA be in the custody of a trustee or custodian. This requirement applies to traditional, Roth and SIMPLE IRAs but there is an exemption which allows certain coins and bullion which meet purity standards to be purchased by these accounts.

IRA custodian such as Augusta Precious Metals can make holding physical precious metals easy. Their storage fees are low, customer service is exceptional, and there is even an easy buyback program available if your metals need liquidating.


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