For gold and silver bullion to qualify as an IRA asset, the IRS has put forth stringent criteria. These requirements include minimum fineness requirements as well as being procured from an approved refiner, assayer or manufacturer.
Precious metal IRAs provide investors with an effective means of diversifying their retirement portfolio and protecting themselves against inflation, yet it’s essential to work with an established dealer and custodian in order to avoid overpaying for silver.
Silver is an extremely rare, homogenous and combinable precious metal with numerous industrial applications. Due to its tensile strength, ductility and malleability it’s used in touchscreens, photovoltaic panels and batteries as raw material; additionally its lustrous surface makes it attractive choice among collectors when purchased in its pur form.
The IRS has established stringent purity criteria for coins, bars and rounds eligible to be added to an IRA account. Gold must be 995.5+ pure while silver and platinum bullion must be at least 999.99+ pure from an approved refiner/assayer/manufacturer; there is one exception which pertains only to United States Mint coins.
Select a trustworthy silver IRA company when opening a Precious Metals IRA to ensure it fits with your investment goals and is compliant with IRS rules. They will work closely with you in purchasing, storing, and providing guidance regarding compliance issues.
The IRS imposes strict regulations regarding precious metals eligible to be included in an IRA account, such as coins that do not comply with them (which often are collectible or commemorative items and therefore non-IRA eligible). Any items which don’t fall within these parameters are typically considered non-IRA eligible and should not be included.
IRAs usually allow only coins made by the government to be included, such as the silver Krugerrand. This bullion coin features the springbok as the national animal of South Africa on one side while on the reverse is Paul Kruger and rand, South Africa’s currency.
The silver Krugerrand features an additional springbok on its reverse. Additionally, this coin displays its weight and rating information as well as being highly collectible – it comes in one-, five- and ten-ounce weights for your convenience – making them suitable for IRA accounts as their premiums are lower than for gold American Eagle coins.
Silver Krugerrands share the renowned design of their gold counterpart. On one side is Paul Kruger’s profile as four-term president of South Africa and symbol of resistance against imperialism around the globe; while on the other is one of South Africa’s national symbols – the Springbok antelope, as well as details such as mint year, metal content and weight.
South African Mint also released a proof collectable version of the silver Krugerrand coin to mark its 50th anniversary, featuring 60 more edge notches than bullion versions.
The IRS allows Self-Directed IRAs to hold only certain types of gold and silver bullion. These include coins, rounds and bars with at least 999 pure silver content and produced by accredited refiners, assayers or manufacturers; official government mint coins must bear either an “S” on one side or the Krugerrand symbol on the other – both traits considered eligible by this agency for storage in an IRA.
Silver can be an excellent way to diversify IRA investments with tangible assets, offering investors a way to diversify their retirement savings with tangible assets. When selecting their silver coin or bar investments, however, investors must carefully consider their financial objectives and risk tolerance before selecting their type of silver investment. Finally, investors should evaluate them against IRS approved fineness standards to make sure that it satisfies IRS-mandated fineness requirements and other criteria.
An Individual Retirement Account for precious metals allows investors to invest physical gold, silver, platinum and palladium bullion directly into their personal retirement accounts. These IRAs can either be traditional, Roth or SEP plans; contributions are tax-deferred until retirement regardless of which account type you select; however physical possession must be given up, meaning an IRA custodian or broker will need to hold your precious metals securely until retirement comes around. Only certain coins and bullion bars displaying logos of NYMEX/COMEX approved refineries as well as government mint produced coins/bulion bars may qualify.