The IRS has approved 10 depositories to store gold in IRAs. These companies go through an audit process to ensure that the gold they receive is the gold you ordered. They also confirm the authenticity of the gold. Many Gold IRA custodians work with specific depositories and have developed procedures that make selling and storing gold easy and secure for their customers.
A gold certificate is simply a piece of paper that can be redeemed for physical gold. If you have a precious metal IRA, your IRA directly owns physical bullion bars or coins, which you select and order directly. The IRS requires you to store your gold in an IRS-approved depot, a company that manages and stores precious metals. This type of storage protects your investment from theft or other types of fraud.
These depots are physically secured by local security personnel and are generously insured. Annual fees are generally charged by the account custodian, and storage and insurance fees are more often owed to the custody account than to the Gold IRA company. That means that if you have one of these types of accounts, the IRS only allows up to an ounce of gold into your IRA. Many online gold IRA providers have streamlined systems and work closely with established custodian banks to take the guesswork out of making these decisions.
Compare the best gold IRAs to see which company is best for your situation, and then invest with confidence knowing that your gold is in good hands. Remember that if you want to keep physical gold at home, you can still do so as long as the gold isn’t part of an IRA. Most IRA companies may buy back gold, but be aware that the price at which they buy gold is lower than the price at which they sell gold. A ROTH IRA can own gold and IRA-eligible precious metals just like any other IRA, including a traditional IRA, SEP IRA, SIMPLE IRA, Inherited IRA, Rollover IRA, and Spousal IRA.
Even with a long time horizon, gold investors have no guarantee of making money from their investment, particularly if you’re planning to rely on a gold IRA company’s repurchase program to sell your gold if you need to accept distributions from that IRA. Gold purchased for a Gold IRA cannot be stored in a home safe, a safe deposit box, a shoe box in your bedroom closet, or anywhere else besides a deposit, bank, or credit union. It’s important to be aware of all costs and expenses before you buy physical gold to keep in an IRA. If you properly transfer your money from an IRA or retirement account to a gold IRA, there is no tax impact.
Gold can also be added to a SEP IRA or Solo 401 (k), accounts created by self-employed individuals or with an employer-sponsored plan. Investing in physical gold through your IRA can be a great way to diversify your investments, particularly if you’re planning to use it as protection against inflation and market volatility. Once you’ve set up your Gold IRA, you can transfer or transfer the funds from an existing IRA or other retirement plans. When you set up a gold IRA, you do so via a so-called self-directed IRA, a type of IRA that allows you to purchase traditional assets as well as alternative assets such as gold, real estate, and tax lien certificates.
