A gold IRA is a type of individual retirement account that allows investors to hold physical gold or other precious metals, unlike standard IRAs. To hold gold in an IRA, you’ll need to set up a standalone account managed by a specialized custodian bank that manages and stores the metal. A gold IRA is a retirement account that allows people to invest in physical gold. They are often used to diversify savings and create an inflation hedge.
Like other IRAs, these accounts also offer valuable tax benefits. To withdraw from a Gold IRA without penalty, you must be at least 59.5 years of age. Once you reach that age, you can either withdraw and take possession of your gold investments, or liquidate those assets and withdraw their value in cash instead. 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.
Investing in a gold IRA requires the services of a custodian bank, a broker to purchase gold, and an approved depositary to store gold. Like other self-directed IRAs, Gold IRAs can be Traditional or Roth. The ability to use gold and other materials as securities in an IRA was introduced by Congress in 1997, according to Edmund C. With a proven IRA specialist, Allegiance Gold staff can help you determine whether your account is eligible for a transfer.
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. However, since gold IRAs are a type of self-governing IRA, they can hold alternative investments as long as they comply with IRS rules. With your Gold IRA or Custom Precious Metals IRA, you’ll still have beneficiaries, receive quarterly account statements, and can sign up online to check your balances. For a gold IRA, you need a broker to buy the gold and a custodian to create and manage the account.
Allegiance Gold offers a streamlined process with a senior portfolio manager and an IRA specialist to help you do just that. Once the money is received by the new self-governing IRA custodian, your Allegiance Gold representative will help you choose the IRS-approved coins and the custodian to store your precious metals. Thankfully, Gold IRA companies make it easy to meet these requirements and add precious metals to your retirement plan. Once you reach 72 years of age, you’ll be required to accept the required minimum distributions (RMDs) from a traditional gold IRA (but not from a Roth IRA).
Even if you open a Gold IRA, it’s important to note that you can’t fund your account directly with gold bars or coins that you own. Physical gold is considered an alternative investment, which is not allowed in a regular IRA. For gold IRAs, government regulations specify what type of gold can be kept in the account and where it should be stored. During his tenure as Director of the Mint, there was little demand for gold IRAs, according to Moy, as it is a very complicated transaction that only the most stubborn investor was willing to make.
There are currently a variety of precious metals that meet the minimum purity requirements allowed for inclusion in an IRA Gold account.