A gold IRA is a self-managed individual retirement account that invests in both physical gold and other precious metals. A gold IRA often has higher fees than a traditional IRA or Roth IRA, which invests exclusively in stocks, bonds, and mutual funds. The term gold IRA refers to a specialized individual retirement account (IRA) that allows investors to hold gold as a qualified retirement plan. Investors with gold IRAs can hold physical metals such as gold bars or coins as well as securities related to precious metals in their portfolio.
A gold IRA is a type of SDIRA that allows retired investors to invest in physical gold. As the name suggests, a gold IRA is a specialized retirement account that allows you to hold physical gold and precious metals, unlike traditional IRAs. These IRAs, also known as precious metal IRAs, work like standard IRAs with contribution limits and distribution rules. However, a gold IRA keeps physical gold bars in your account instead of stocks, bonds, and other paper assets.
Most types of retirement accounts qualify to be fully or partially tax-deferred and transferred to a gold IRA or a custom precious metals IRA with no penalty. If you’re planning your retirement and wondering how to set up a Gold IRA account, a Gold IRA company can guide you through the process. The Internal Revenue Service (IRS) allows holders of self-managed IRA accounts to purchase bars and coins minted from gold or other approved precious metals such as silver, platinum, or palladium. Similar to any retirement account, with your Gold IRA or Custom Precious Metals IRA, you invest your retirement savings based on a specific tax treatment (before or after tax) and then accept distributions in the future.
If you’re interested in setting up such an account, you’ll need to look for a specialized custodian or firm that is able to manage all documentation and reporting for tax purposes that are required to maintain a Gold IRA. If you decide to invest in gold as part of your retirement plan, a gold IRA company can help you buy the assets included in your IRA, and you can buy gold with a rollover from another retirement account. Gold IRAs will help diversify an individual’s retirement account and serve as a hedge against specific financial factors. Still, a gold IRA can be a good option for investors who want to diversify their retirement accounts and also take advantage of the hedging benefits that the yellow metal offers over other financial assets, such as fiat currency and stocks.
Remember that not every self-governing IRA custodian bank offers the same investment options. So make sure that physical gold is among their offerings before you open an account. As a result, gold IRAs require the use of a custodian bank, usually a bank or brokerage firm, to manage the account. A gold IRA works just like any retirement account with the added benefit of giving you more control over your investment, including physical gold coins and bars, as well as other IRS-approved silver, platinum, and palladium metals. A gold IRA must be kept separate from a traditional retirement account, although the rules surrounding things like contribution limits and distributions remain the same.
Working with a designated IRA specialist, Allegiance Gold staff can help you determine whether your account is eligible for a transfer.