You cannot hold physical precious metals in a regular individual retirement account (IRA). However, there are specially designed precious metal iras that allow you to invest for retirement using gold, palladium, silver and other valuable metals. To use an IRA to invest in gold, you'll need to follow two guidelines from the IRS. First, you can only invest in IRS-approved gold.
Although the list of approved options changes, the IRS says it must be “highly refined bullion. Gold IRAs are called self-directed IRAs, but you can use them to purchase specific IRS-approved gold and precious metal bars. They can also be used to purchase real estate, businesses, and other assets. Keep track of the prices of the precious metals market and take advantage of favorable price fluctuations to increase your account.
When you want to sell metals, tell your IRA custodian what metals to sell. The IRA custodian will hold proceeds from the sale in your cash account pending further instructions from you. There are no tax consequences as long as the transactions for buying and selling precious metals remain within the IRA and you are not paid anything. When you retire, tell the custodian if you want your retirement distributions to be paid in physical metals at fair market value or in cash on the sale of your metals.
The IRS has established guidelines for metal fineness standards to determine whether gold or silver in the form of bullion or coins is acceptable for a gold IRA. There are currently a variety of precious metals that meet the minimum purity requirements that are acceptable for inclusion in a gold ira account. Other terms such as precious metal anger, silver IRA, platinum IRA or palladium IRA are also frequently used. You may face taxes, penalties, and fees throughout your IRA if the IRS decides to call you about your precious metals storage.
Some trustees have their own facilities for storing physical precious metals, while others use a third-party metal depot as a storage facility. Augusta Precious Metals customers benefit from low costs and know exactly how much they are paying and why. These individual retirement accounts allow you to invest in gold, precious metals, and other assets (including real estate) to increase your wealth and diversify your portfolio. When funds are available in the new IRA, an account representative will review the current precious metal options that a consumer can purchase.
Section 408 (m) of the IRS Code defines what types of precious metals can be purchased with a self-directed IRA. Starting with a wide range of educational resources, Regal's IRA specialists begin working with clients through the application process and continue to shake hands with them every step of the way. The IRS clearly states that precious metals purchased by the IRA must be held by banks and trustees approved by the IRS. With a gold IRA, you can take your RMDs “in kind, which means that physical precious metals are sent to you directly.
If you have a retirement plan from a previous employer or if you retire or change jobs, you can transfer funds from your employer's plans, such as 401 (k), 403 (b), 457 (b), or TSP, to a self-directed IRA to buy precious metals. Depending on the storage facility you select, you can usually make an appointment to view your precious metals.