If you want to invest in gold coins or bars via an IRA, look for a company with an upfront fee structure, including account setup and maintenance charges, storage fees and insurance premiums.
This company will purchase precious metals on your behalf and store them in an IRS-approved depository, as well as managing any eligible distributions you make to an IRA account.
Purity
To comply with IRS guidelines when investing in gold investments, it’s necessary to work with a precious metals dealer who specializes in IRA-approved coins and bars. Such dealers should possess integrity, reliability and quality service. Two such IRA-approved coins include the American Eagle and Canadian Maple Leaf – these coins offer specific purity options and weight options which meet IRS specifications for approved bullion investments.
Gold IRA companies can assist you in choosing and purchasing precious metals that comply with IRS guidelines, ensuring they do not remain in your possession (unless you are qualified non-bank trustee or custodian).
Your IRA company will store your precious metals in an approved third-party depository that meets IRS standards, typically charging an annual fee to cover storage, security and insurance services. They may also recommend one for your individual circumstances.
Liquidity
Self-directed IRAs may only contain precious metals that meet IRS guidelines; collectible coins are considered collectibles rather than investments and cannot be included.
Investors purchasing gold outside an IRA have more freedom in terms of purchasing and storing it; however, higher storage fees may diminish profits significantly.
Home storage of gold eligible for an IRA requires following stringent IRS guidelines, and may not be as safe; thieves could break in and steal it!
Before investing in precious metals for their IRAs, investors should perform thorough due diligence on the dealer. A great place to begin this research is checking their Better Business Bureau rating and membership in industry trade groups like Professional Numismatists Guild. In addition, look for dealers offering competitive prices.
Taxes
Gold coins and other precious metals can add significant value to your retirement portfolio, but before investing you should know a few things about your gold investments. First of all, keep in mind that all gold investments are subject to taxes; only those held in an IRA are exempted from paying taxes for them.
Know that gold IRAs must be stored by an approved custodian; keeping your gold at home could incur serious fines from the IRS and is illegal under current rules.
Many people choose to store their gold assets at home in a safe or bank safety deposit box, which can pose risks. Storing at home makes your gold vulnerable to theft and your insurance may not cover its full value in case of natural calamities. Opting for a trusted gold IRA provider provides secure storage that complies with IRS regulations for added peace of mind.
Storage
Investors should abide by the stringent IRA gold storage rules to avoid penalties. Many reputable gold IRA companies work with custodians and depositories that abide by IRS guidelines; such services provide secure storage solutions with reliable retrieval options for precious metals.
Many who invest in gold IRAs may prefer storing their precious metals at home as this allows them to view and touch their investment directly. Unfortunately, doing this may incur penalties such as distribution and early withdrawal taxes that must be paid.
The main risk associated with gold storage in any home is theft. Replacing stolen gold can be costly, and insurance premiums often outstrip replacement costs. Furthermore, stored precious metals could also be vulnerable to natural disasters like fire and flood as well as fluctuating values making selling for good prices difficult and incurring investment losses.