How Do I Add Gold Coins to My IRA?

Gold IRAs are increasingly becoming the go-to solution for investors concerned with currency inflation. People can add gold coins and bullion directly into their retirement accounts using pre-tax dollars, making the investment even more tax efficient.

Gold eligible for inclusion in an Individual Retirement Account must be pure and certified by an impartial third party as to quality. It may then be stored either in a depository specializing in precious metals protection, or mixed together with other eligible assets in one holding account.

Self-directed IRAs

Gold coins can help diversify your investment portfolio with self-directed individual retirement account (SDIRA). However, it is essential to understand the rules regarding eligible gold in an IRA as well as verify its legitimacy with a custodian before searching for the best prices for your purchase.

The IRS outlines specific requirements for precious metals that can be purchased with an SDIRA, with jewelry and collectibles not typically being permitted; only certain kinds of gold coins meet IRS purity guidelines, with South African Krugerrand coins not qualifying due to not having been produced at an approved government mint or having received accreditation from an assayer or manufacturer.

Physical precious metals can serve as a hedge against economic downturns and inflation, providing insurance against economic decline and inflation. But to preserve their tax-advantaged status, precious metals should be stored securely; many IRA custodians have relationships with depository facilities where you can store your precious metals safely.

Custodians

When opening a gold IRA, select an IRS-approved custodian who specializes in precious metals. They should be trained in how to purchase coins and bullion from dealers who comply with IRS rules, as well as help selecting an IRS-compliant depository for you to store your gold. Typically these facilities charge storage fees; find one with competitive fees to find one suitable.

Gold IRAs provide similar tax advantages as traditional IRAs, being funded with pretax money and enjoying tax-deferred investment growth until withdrawals occur upon retirement. Furthermore, unlike stocks or mutual funds which could experience diminishing purchasing power over time, the value of gold will not suffer the same way.

Dealers

Gold coins can provide many advantages to your retirement portfolio. They provide protection from currency devaluation and financial and political crises while offering long-term wealth growth potential. Furthermore, their low correlation with other assets allows for smooth trading activities and is highly liquid.

Goldco offers an IRA-eligible coin dealership which sources its products directly from mints and refiners, or you can buy them through an approved IRA custodian who will then ship them directly to the depository of your choice.

Coins must meet certain IRS criteria in order to be considered eligible for an Individual Retirement Account (IRA). They must meet legal tender status with at least 99.5 fineness, produced from either a national government mint or an accredited assayer/manufacturer, and produced using legal tender. Numismatic or semi-numismatic coins that fall outside these criteria are not eligible, though your IRA custodian can handle purchases and reporting to the IRS on your behalf.

Storage

Many people rely on precious metals in their retirement accounts as a hedge against the depreciating purchasing power of dollars. Gold is typically preferred, while silver and platinum may also be included as investments. Unfortunately, certain IRS laws treat precious metals like this as collectibles that cannot be owned in an IRA account.

To prevent this issue from arising, it’s advisable to place your precious metals in an IRA-approved depository. A custodian will purchase and arrange delivery of your precious metals to an external storage facility which specializes in safeguarding precious metals; additionally, this depository will ensure that IRA-eligible coins do not get mixed in with other accounts’ assets.

Home storage may seem like an appealing solution for gold, but this may not be in your best interests. Your gold is susceptible to theft and damage and may not be covered under homeowner’s insurance policies; plus storing precious metals at home could violate IRS rules on IRAs and prohibited transactions.


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