The IRS has set forth stringent requirements regarding what can be purchased with an Individual Retirement Account (IRA). Only certain bullion coins that meet a specified fineness level can be bought, while your custodian must also be an accredited metals dealer with access to secure depository storage for precious metals.
Avoid fees altogether by opening a true self-directed IRA with one of several custodians that offer them.
IRA-eligible coins
IRA-eligible coins are defined by the Internal Revenue Service as coins that meet both purity and minimum fineness standards, typically marked as such and sold only through gold IRA companies. Their websites may offer search functions to help find appropriate investments. Investing in these IRA coins is a great way to diversify your portfolio.
As part of your IRA investment portfolio, eligible coins include bullion rounds, bars, and medals made from national or government mints that meet minimum fineness standards. Additionally, the IRS has authorized rare numismatic coins; however these tend to be valued on rarity rather than precious metal content.
Buy IRA-eligible coins using cash or through funding your precious metals IRA using a rollover from another retirement account, as well as transfering a 401(k). Make sure to select a trustworthy dealer, and store all coins securely after purchasing them.
IRA-eligible bars
If you plan to use an IRA to invest in precious metals, the IRS rules dictate that any such purchases must be held by a third-party custodian. However, there is one notable exemption: an IRA can invest in gold, silver, platinum and palladium coins or bullion that meets certain purity standards.
Johnson Matthey and Sunshine Minting offer 99.9% pure silver bullion bars as an IRA option, available in 1-ounce, 10-ounce, and 100-ounce sizes respectively. Once sent directly to your address in an unopened and sealed package that can only be opened upon arrival at its final destination.
Bullion coins that meet purity standards qualify for Individual Retirement Accounts, such as American Eagles and Canadian Maple Leaves. But collectible coins like British Sovereigns, French 20 Franc gold coins and Australian Koalas do not meet this eligibility threshold.
IRA-eligible rounds
When investing in precious metals, IRA-eligible rounds offer a smart way to diversify your investment. Produced by private refiners or government mints, they come in various sizes and weights making them easier than coins to sell on.
Precious metals must meet certain standards set forth by the IRS to become eligible investments for an Individual Retirement Account (IRA). They must be certified by a reliable assayer or refiner before being stored by a custodian who manages and safeguards them physically.
Custodian fees will include those for storage and insurance of metals purchased, plus markup from dealers. Unfortunately, not all precious metals IRA providers clearly list these fees on their websites; thus it’s wise to inquire before making a decision to purchase.
IRA-eligible rare or collectible coins
Precious Metals IRAs can provide an excellent way to diversify your portfolio with tangible assets, but you must adhere to IRS guidelines. Working with an IRA specialist will help ensure you avoid common mistakes and meet your investment goals successfully.
One of the most frequently made mistakes in investing is purchasing rare or collectible coins that do not qualify for a Precious Metals IRA. As these coins tend to be valued for their rarity or desirability rather than their bullion content, these purchases cannot be included within an IRA.
Rare coins may seem like attractive investment opportunities; however, dealers sometimes misrepresent the return expectations on these coins relative to standard bullion products and create confusion for IRA investors by exaggerating expected returns over standard bullion products. This practice creates unnecessary confusion for retirement investors who then purchase coins that don’t meet IRA standards and end up purchasing coins that don’t suit their retirement plans. As a result, investors should always choose products which adhere to strict purity standards that can be stored safely within an IRS-approved depository; most precious metals companies clearly mark these products with appropriate labels so investors know where exactly they can store them safely within their retirement plans.