Precious metals invested in a self-governing IRA must be stored in an authorized depository such as the Delaware Depository. Your IRA custodian may recommend a depository, but you can choose one yourself that meets the Internal Revenue Code requirements. The main benefits of investing in precious metals through an IRA are tax benefits. By using an IRA to buy precious metals, the investor saves taxes either now or in the future.
The specific tax benefits depend on whether you choose a traditional IRA or a ROTH IRA. The IRS, according to the Wall Street Journal, “is warning taxpayers to be wary of anyone who claims that precious metals stored in your IRA could be kept at home or in a safe deposit box. IRA-eligible gold coins, bars, and coins must meet a number of requirements set out in the Internal Revenue Code in order to be stored in a self-directed IRA. Customers can rest assured that their metals are fully insured in the rare event of loss or damage while the package is in transit.
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. You must be careful when making an IRA contribution, as unapproved metals are rejected by the depository office. Gold IRA companies vary in terms of experience, service, and costs. So take a look around and compare your options before you proceed with opening an account. Your self-governing IRA custodian can help you arrange to transfer or transfer your existing IRA to a precious metals IRA.
If you’re interested in owning gold or investing in its future value, a self-directed gold IRA account could be a good way to do so. You can’t add gold that you already own to a self-directed IRA, even if it meets all Internal Revenue Code requirements. The term gold IRA refers to a specialized individual retirement account (IRA) that allows investors to hold gold as a qualified retirement plan. 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.
Examples of unapproved precious metal products include gold from before 1933, Krugerrands in gold and 90% US silver coins. Storing your IRA gold at home can be considered a distribution, meaning you lose your tax-deferred benefits and could be punished with a fine if you’re under 59½ years of age.
