What Precious Metals Are Allowed in an IRA?
People are often shocked to find out that gold, silver and platinum coins and bullion bars can be included as investments within an IRA account. In general, however, an IRA must only hold precious metals that meet IRS criteria.
These coins must meet all criteria required of an IRA product, produced at an approved refiner or national government mint and meeting minimum fineness standards.
Gold Coins
Gold coins are an attractive way to diversify a Precious Metals IRA portfolio. However, it is essential to remember that the IRS stipulates a fineness standard for bullion coins used within an IRA account and all coins utilized must meet this criterion before being added as investments.
American Gold Eagles and Canadian Maple Leaves are popular choices for retirement accounts that use gold coins, as both are composed of 24-karat gold, meeting IRA fineness requirements. Other popular choices are Austrian Philharmonics and Chinese Panda coins.
Whatever type of coin you select for an IRA investment, it is vitally important to avoid numismatic coins which are considered collectibles and thus prohibited by the IRS. Individuals who violate these rules risk seeing their tax-advantaged status revoked or face significant penalties upon withdrawal.
Gold Bars
As with coins, gold bars must meet IRA fineness standards and come from either a national government mint or an accredited refiner, assayer, or manufacturer that belongs to one of NYMEX/COMEX, LBMA TOCOM ISO 9000 or other such organizations. Only certain precious metals companies provide products suitable for storage in an individual retirement account (IRA) depository.
Some investors prefer numismatic coins over bar-based precious metals due to the higher commissions that numismatic coins pay the gold company selling them. If using an IRA to invest in gold, though, bullion bars may provide the most accurate reflection of spot price gold prices.
Precious Metals IRAs are an innovative form of individual retirement account that enable investors to store physical precious metals with an IRS-approved depository. Similar rules that apply to traditional IRAs apply here as well, including contribution limits and accounting procedures for precious metal investments.
Silver Coins
Silver is an attractive precious metal investment option because of its ability to protect against inflation and economic instability. Silver also serves as an effective diversifier, as its price doesn’t track stocks or bonds as closely. Finally, physical precious metals provide tangible worth that provides comfort during times of financial instability.
American Silver Eagles and Canadian Gold Maple Leaves qualify as eligible coins for investment within an Individual Retirement Account. IRA-eligible silver bars must also be constructed by an IRS-approved refiner and stored at an approved depository. As with all IRA investments, however, you’ll need a Self-Directed IRA provider and dealer in order to purchase metals safely; such firms meet stringent government regulations and have high security vaults across the US, while also being regularly audited by the IRS to ensure your assets remain safe.
Silver Bars
Silver bars are another good way to invest in precious metals; however, for them to qualify as IRA-eligible silver bullion assets they must meet IRS purity requirements, such as being from accredited manufacturers and being 99.9% pure.
Large 1,000-oz “Good Delivery” silver bars are considered ideal investments due to their lower production cost and guaranteed quality, though smaller silver investment bars exist and can easily be sold off piecemeal when it’s time to diversify your portfolio.
As part of an IRA, silver coins and bars must meet stringent purity and minting standards to qualify. Numismatic coins featuring artwork or designs often cannot be included; fortunately, fractional ownership with OWNx makes acquiring these assets simpler by investing in portions of larger bars or coins; making them both accessible and cost-effective while guaranteeing secure storage in an insured facility.
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