Can You Put Coins in an IRA?
An Individual Retirement Account that invests in precious metals must hold physical coins or bullion bars in a Precious Metals IRA – which is a type of Self-Directed IRA.
IRS has stringent regulations regarding how and where IRA assets should be stored, so it’s essential that you review these before purchasing coins for your IRA.
IRS Approved Coins
IRS rules do not permit Individual Retirement Accounts (IRAs) from investing in collectibles, but there is a statutory exception allowing IRAs to purchase certain precious metal coins and bullion meeting certain purity requirements as an investment option. Gold coins eligible for investment into an IRA account are often sought out by retirees looking to diversify their retirement portfolio with precious metals.
American Eagle coins made by the United States Mint are among the IRA-eligible coins available today and come in various sizes and gold purity options, while proof gold American Eagles feature lower mintage for increased rarity. Furthermore, those looking to commemorate an important moment in American history may want to invest in Pearl Harbor coins which boast the highest gold purity available today – the latter are even eligible for tax deduction.
No matter the coin you purchase, remember that the IRS requires any IRS-approved coins or precious metals/bullion owned by an IRA to be kept under the physical possession of a trustee and not stored at your home or personally by you. It would be prudent for your precious metals to be stored with a bank affiliated with your custodian or Self-Directed IRA LLC custodian.
Non-IRA Approved Coins
The IRS does not list all coins and bullion as eligible investments for Individual Retirement Accounts (IRA), only those meeting minimum fineness requirements, such as gold bars minted by the U.S. Mint or national government mints or manufactured by an accredited refiner, assayer or manufacturer.
Gold, silver, platinum and palladium investments within your Self-Directed IRA provide you with an opportunity to diversify your retirement portfolio and perhaps reduce market fluctuations risk. However, investing in precious metals requires special consideration compared to stocks or low-risk bonds as precious metal investments may present unique considerations and requirements.
When it comes to precious metals eligible for investment in an IRA, the IRS requires that they are taken physical possession of and stored at an approved depository. An IRA cannot invest in collectibles such as precious metals which fall under this classification of tax code; as a result, you should never buy non-IRA approved precious metals or coins with significant premiums associated with their collectibility premiums or produced by private mints.
Non-IRA Approved Bullion
Traditional Individual Retirement Accounts (IRAs) typically cover assets like cash, stocks and mutual funds. But the tax code allows for unique self-directed Precious Metals IRAs that allow physical bullion to be held as collateral.
Gold coins and bars are two of the most sought-after precious metal investments, according to the IRS. Coins approved for IRA investment must meet certain minimum fineness standards as set out by COMEX/NYMEX, LME, NYSE/Liffe, LBMA, LPPM TOCOM or ISO 9000 certification bodies.
Money Metals Exchange provides an impressive selection of IRA-compliant gold coins and bullion products that offer safe and secure alternatives to traditional investments. Reach out today to find out how diversifying your portfolio with a Precious Metals IRA could work, since its physical bullion will remain your property even after retirement and allows you to choose how it’s stored and maintained.
Non-IRA Approved Storage
The IRS has stringent storage requirements for coins and bullion held within an Individual Retirement Account, including both home storage IRAs and self-directed IRAs managed by custodians. Furthermore, these rules must be strictly observed even when working with custodians known for being particularly accommodating towards precious metals IRA investors.
Some advisers suggest creating an LLC through which your IRA invests and then storing gold at your personal residence; however, the IRS has made it clear that precious metals must remain under the custody of an IRA custodian rather than their owner.
As safe deposit boxes do not comply with IRS rules, banks are the ideal option to store coins and bullion. You should also consider signing an agreement ensuring the storage of your bullion by an IRA-approved provider.