A gold IRA or precious metal IRA is an individual retirement account in which physical gold or other approved precious metals are stored for the benefit of the IRA account holder. It works the same as a regular IRA, only instead. A precious metal IRA is a special form of a self-directed individual retirement account. Self-directed IRAs allow you to invest in a wide variety of unconventional assets, including precious metals, real estate,
and even cryptocurrencies.
These options go beyond the usual options available in a traditional IRA, although they otherwise share virtually identical features, including the same contribution limits. A gold and silver IRA is simply a self-managed individual retirement account that allows you to hold physical gold and silver. Similar to a traditional IRA account, any gains in the value of gold and silver are deferred for tax purposes until you withdraw them at retirement age. This process is not complicated at all. But if you need extra help opening an account, contact an Allegiance Gold executive who’ll walk you through every step of the
way.
Roth IRAs allow investors to invest money after tax in their IRA to invest in assets of their choice. Therefore, gold IRAs require the involvement of a custodian bank, usually a bank or brokerage firm, to manage the account. A gold IRA must be kept separate from a traditional retirement account, although the rules, which include things like contribution limits and distributions, remain the same. Instead, you must buy physical gold and silver and have a third party store the precious metals for you
.
All products that do not fall into these areas, with the exception of American Gold Eagles, are not eligible for IRA contributions. With an IRA account for gold and silver, you don’t have to pay taxes on your precious metals until you withdraw them at retirement age. You can set up the SDIRA either as a traditional IRA (tax-deductible contributions) or as a Roth IRA (tax-free distributions). Gold is generally regarded as a hedge against inflation and allows investors to diversify their portfolios.
Examples of unapproved precious metal products include gold from before 1933, Krugerrand in gold and 90% US silver coins. For example, you can store IRA-approved physical gold in the new Gold Osprey Coin or the Gold American Eagle Coin. You can’t currently hold rare or collector coins, Swiss francs, British government bonds, and German marks in a self-directed IRA. The Internal Revenue Service (IRS) allows holders of standalone IRA accounts to buy bars and coins minted from gold or other approved precious metals such as silver, platinum, or
palladium.
Precious metal IRAs are generally only useful if you have a strong portfolio and want to diversify your investments by setting aside a small amount for physical gold, silver, platinum, or palladium.
