Although IRAs used to be limited to owning American Eagle gold and silver coins, IRAs can now invest in IRS-approved gold, silver, palladium, and platinum bars and coins. The term gold IRA refers to a specialized individual retirement account (IRA) that allows investors to hold gold as a qualified retirement plan. Investors with gold IRAs can hold physical metals such as gold bars or coins as well as securities related to precious metals in their portfolio. A gold IRA is a type of self-directed IRA that allows you to invest in gold bars for retirement.
In a regular IRA, you can’t own physical gold, although you can invest in a wide variety of assets that are invested in gold, such as gold stocks or gold ETFs. Custodian banks that offer a checkbook IRA structure generally recommend that their customers store IRA metals in a safe deposit box. A palladium IRA is a form of a self-governing IRA or precious metal IRA that is invested in certain eligible types of physical palladium coins or palladium bars. Make sure you check the list of approved gold objects with your custodian manager before you deposit gold into your IRA.
Segregated storage is a form of storage that keeps your assets separate from other gold or silver investments that are either outside the IRA or owned by someone else. The term gold IRA is primarily used to describe a self-directed IRA whose funds are invested in hard metals. 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-governing IRA. As mentioned above, a gold IRA allows investors to stash their money in gold or other precious metals.
A silver IRA is also a traditional IRA, a ROTH IRA, a SEP IRA, a SIMPLE IRA, or an inherited IRA that is managed by the account holder himself and holds valid forms of physical silver coins or silver bars. Gold IRAs follow the same general rules as traditional IRAs when it comes to tax benefits. You can choose between a traditional IRA or Roth IRA contribution limit and withdrawals. Before you open a gold IRA, keep in mind that it’s not the only way to invest in gold with your retirement funds. Precious metals IRAs are usually self-managed IRAs, a type of IRA in which the custodian bank allows you to manage a more diverse range of investments in the account.
While you can gain exposure to gold in a normal retirement account by owning stocks or funds, you can’t hold the physical asset in an IRA or 401 (k). If you’re interested in setting up such an account, you’ll need to look for a specialized custodian or firm that is able to manage all documentation and reporting for tax purposes that are required to maintain a Gold IRA.