Gold IRAs have higher maintenance fees than other types of IRAs because of the additional costs associated with investing in gold. In addition to brokerage fees and account setup fees, the investor must pay additional costs to store and insure the precious metal. Rules against holding collectibles Tax legislation prohibits IRA holders from investing in life insurance, stock in an S corporation, or collectibles. Some types of gold coins are classed as collectibles and would break the rules.
What is confusing and frustrating is that some gold coins and types of gold bars are allowed, others are not. And it’s not like the IRS keeps a master list of what’s allowed and what isn’t. A gold IRA is a specific type of retirement account that stores physical gold assets, such as gold bars and coins. Thankfully, there is no limit to how much you can transfer from another IRA to your precious metals IRA.
A good Gold IRA company will help you sort out the paperwork and stay on board to be available to you as a personal resource even after your purchase (known as a “trade”) is complete. While IRAs are accessible with impunity from the age of 59 years and six months, retirees must withdraw a specific amount from their IRA each year once they reach 70 years and six months of age. Unfortunately, it is well known that some Gold IRA companies are known for using questionable tactics to pressure potential customers, as the Gold IRA industry is unregulated. A certified financial planner may be able to give you workable suggestions on how to best incorporate a gold IRA into your strategy and plan, but the final decision is up to you.
Gold IRAs are very common these days, but traditional financial advisors still generally don’t provide their clients with any information about them. The price of gold tends to rise with the cost of living, which means that retirement savings held as gold are less likely to be undermined by inflationary forces than cash alone. If you feel pressured to buy a Gold IRA for any reason, you might want to keep looking for a better company. Those considering a gold IRA must also have the time and knowledge to make good decisions about their SDIRA.
It’s not too complicated, but setting up a Gold IRA account requires a few key steps. So if you want to keep gold in your IRA, you’ll need to set up a self-directed IRA first and then you’ll need to find a custodian that specializes in self-directed gold IRAs. Costs of buying and storing gold Once you’ve chosen a specialized, independent gold IRA custodian, you need to remember that there are fees for all aspects of buying, storing, and selling gold. Storing gold in an IRA offers tax benefits, but a physical asset doesn’t take advantage of the tax-free growth aspects of IRA investments.
A gold IRA company usually has an order desk that can help you select gold (or other precious metals) that fit your investment strategy — or at least shed some light on the gold products most commonly ordered by retirement savers. A gold IRA comes with many of the benefits of a physical asset as well as the tax benefits of an IRA.