Gold IRAs appeal to investors who want a diversified retirement portfolio. A gold IRA is a type of self-directed IRA that allows you to invest in gold bars for retirement. In a regular IRA, you can’t own physical gold, although you can invest in a wide variety of assets that are invested in gold, such as gold stocks or gold ETFs. Gold IRA rules require that you store eligible precious metals with a national depositary, bank, or IRS-approved trustee.
Whether you’re looking to upgrade existing employer-sponsored 401 (k) accounts to more secure options or transfer some of your existing traditional, Roth, or other types of IRA accounts to a gold IRA, Allegiance Gold can help you meet regulatory requirements, avoid tax pitfalls, and diversify with physical precious metals that can help stabilize your retirement portfolio. It should be emphasized that a gold IRA is only necessary if an investor wants to invest in physical gold bars, coins and gold bars. By opening a standalone IRA with Allegiance Gold, you are able to make your own investment decisions and select IRS-approved coins, gold bars, and bars to invest in, and they bear the weight and security of tangible assets. Gold IRAs are a special type of self-directed IRA that allows you to invest in physical gold and other precious metals, such as silver, platinum, and palladium.
If you want to hold physical gold in an IRA, the first step is to open a self-directed IRA (SDIRA), which you manage directly with a custodian bank. For example, pre-tax funds included in a Roth IRA are taxed before they are converted to a Roth IRA, while post-tax funds are not taxed. You can set up the SDIRA either as a traditional IRA (tax-deductible contributions) or as a Roth IRA (tax-free distributions). All Gold IRA rollovers follow the same rules as converting to a traditional IRA or a Roth IRA.
Financial professionals use gold and precious metals as a hedge against inflation and deflation, dollar depreciation, and an evolving negative economic and political environment. 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. The custodian is an IRS-approved financial institution (bank, trust company, broker), but many financial services and mutual fund companies that process regular IRAs do not use the self-directed version. While you can gain exposure to gold in a normal retirement account by owning stocks or funds, you can’t hold the physical asset in an IRA or 401 (k).
In addition, although the IRS allows gold coins such as the American Gold Eagle, the American Buffalo, the Canadian Maple Leaf and the Australian Gold Nugget, it does not allow investments in South African Krugerrand or British state gold coins. These investments are available in a normal brokerage IRA, which means you don’t have to go through the work and additional costs of setting up a self-directed gold IRA.