Physical gold can play an important role in a well-diversified retirement portfolio, however, there are certain gold IRA rules involved that must be considered if you want to take advantage of the full benefits such a setup can offer. IRA-eligible gold can’t be added to just any retirement account. It usually needs to be incorporated into a Self-Directed IRA, one of the few individual retirement accounts that doesn't limit you to only traditional paper assets. Take advantage of everything a gold backed IRA can offer with these easy to understand gold IRA guidelines. They’ll help you maximize your retirement strategy, better avoid tax penalties, and stay in control of your precious metals until the day you retire.
Choose your gold wisely.
Only certain gold coins, bars and rounds are IRA-approved.
You may love South African Gold Krugerrand Coins, but you can’t include them in your gold IRA. With fineness of .9167, Krugerrands do not make the cut.
IRA-eligible gold coins, bars and rounds must meet a set of requirements set forth by the Internal Revenue Code in order to be held in a Self-Directed IRA. They must meet a minimum fineness requirement of .995 and be produced by a national government mint or accredited refiner/assayer/manufacturer. Gold American Eagle Bullion Coins are the only gold coins, however, that are an exception to the purity guidelines. They have a fineness of .9167.
Your options are still far from limited. IRA-eligible precious metals includes 1 oz. American Eagle Bullion Coins, American Eagle Proof Coins, 1 oz. American Buffalo Coins, 1 oz. and 1/10 oz. Pearl Harbor Coins, Australian Kangaroo Coins, 1 oz. Austrian Philharmonic Coins, 1 oz. Canadian Maple Leaf Coins, and 10 oz. and 1 oz. Perth Mint Bars.
If any of the above IRA-eligible gold coins have been graded for their condition by a certification organization (like the Professional Coin Grading Service), they will typically be defined as “collectibles” by the IRS and are thus not allowed in IRAs. Should you desire, you can have the coins graded after you’ve liquidated your account and taken possession of them.
You must buy gold through a custodian.
You can’t add gold you already own to a Self-Directed IRA.
If you already own some of the gold coins listed above, you may be thinking, “How convenient! I can move them into a gold IRA!” But this isn't the case. You cannot add gold you already own to a Self-Directed IRA, even if it meets all of the requirements set forth by the Internal Revenue Code.
Instead, you must use cash in your IRA to buy gold through a custodian. Funds can either be transferred from one custodian to another, rolled over from one retirement account into another, or deposited into a new IRA account. In each situation, the custodian buys the precious metals on your behalf and arranges delivery to a third-party facility that specializes in protecting precious metals. You have complete control over the gold that's purchased and the depository, as long as both are IRS-approved.
IRA gold must be stored in an IRS-approved depository.
You can’t store your IRA gold at home.
You can't keep IRA-eligible gold in your home or in a local security deposit box.
Highly refined bullion can be included in your IRA, “provided it is in the physical possession of a bank or an IRS-approved nonbank trustee,” writes the IRS.
Storing your IRA gold at home can be considered distribution, which means you may lose your tax-deferred benefits and could get hit with a penalty if you're under 59 ½ years old. What's more, if the IRS determines that the day your IRA gold entered your home was the date of “distribution,” you could end up paying additional penalties and back taxes owed from the time of distribution.
The IRS, says the Wall Street Journal, “warns taxpayers to be wary of anyone claiming that precious metals held in your IRA can be stored at home or in a safe-deposit box.”
You can walk away with physical gold.
At the end of your IRA term, you can take possession of your gold.
Once you are 59 ½ years old, you can liquidate the precious metals in your Self-Directed IRA for cash or take physical possession of your gold and silver without penalty.
Unlike withdrawing funds from a traditional retirement account, a gold backed IRA allows you to walk away with a powerful physical asset in hand—gold—which you can hold onto, sell at a later point, use as currency in a time of crisis, or pass down to family members.
You can have more than one retirement account.
Contribute to multiple retirement accounts for multiple avenues of security.
If you’re part of the 32 percent of American workers saving anything in a workplace retirement account, congratulations! You’re already steps ahead of many other Americans, two-thirds of whom don’t contribute anything to a 401(k) or other retirement account available through their employer, reports Bloomberg.
And you can get even further ahead, all while potentially mitigating more risk. In addition to contributing to an employer sponsored 401(k), you can contribute to a Roth IRA, Traditional IRA, or Self-Directed IRA.
Don’t exceed the maximum contribution limits (based on your income level and age) and you can contribute to all of your retirement accounts throughout the tax year. You should consult your own tax advisor to determine your eligibility.
“Because gold prices generally move in the opposite direction of paper assets, adding a gold IRA to a retirement portfolio provides an insurance policy against inflation,” says Edmund C. Moy, former United States Mint Director. “This balanced approach smooths out risk, especially over the long term.” Learn more about the powerful role gold can play in your retirement plans. Request U.S. Money Reserve’s free Precious Metals IRA Information Kit today!
It’s never too late to open a Precious Metals IRA.
Free one-on-one consultations are available today.
For as long as there's gold on this earth, it's not too late to open your own Self-Directed Precious Metals IRA. U.S. Money Reserve's Gold Standard Precious Metals IRA program combines the traditional protection of gold and silver with the modern convenience of an IRA. Though the rules surrounding retirement accounts and gold IRAs may seem murky, the experienced Account Executives at U.S. Money Reserve can help clear things up. Whether you have an existing IRA or 401(k) account, we can help you transfer or roll it into gold or silver. And if you don't have an IRA, we'll walk you through the simple setup process and your options for IRA-eligible precious metals. Call 1-844-307-1589 to consult with one of our knowledgeable IRA Account Executives today!