Thanks to the Taxpayer Relief Act of 1997, which expanded precious metal holdings permitted in IRAs to one, a half, a quarter or a tenth of an ounce of US, US gold coins and one ounce of silver coins minted by the US Treasury Department, as well as certain foreign coins. Just as with silver, not all gold bars qualify for a Gold IRA account.
Approved gold investments must fall under a pre-approved list (as described above) and be pure 24-carat gold bars (1 oz — 400 oz). For more information, see IRS publications 590-A %26 590-B. To be eligible for an IRA investment, a gold bar product must meet the minimum purity requirement for IRA gold, which is set at 0.995 pure. In other words, a gold coin or gold bar must be at least 0.995% pure to be deposited into an IRA.
The Internal Revenue Service (IRS) is the government agency responsible for setting guidelines for precious metal products approved by the IRA. In order for a gold coin or gold bar to be allowed in an IRA, it must meet the purity criteria. Gold bars must be included. It is even stricter for other precious metals.
It must be silver. Scottsdale Bullion %26 Coin has simplified the process of setting up a gold and silver IRA in six easy steps. To invest in precious metals through a self-directed IRA, you must establish a valid IRA and have cash in the IRA. First, the account isn’t backed by dollars like a 401,000 or other type of retirement account, so the ongoing depreciation of the dollar doesn’t adversely affect the value of the gold held in your IRA.
To open a self-managed retirement account and fund it with your gold assets, you must find an IRA custodian or an IRA trustee who is qualified and willing to hold the physical precious metal in your name. There are currently a variety of precious metals that meet the minimum purity requirements that are acceptable for inclusion in a Gold IRA account. This enables investors to protect their portfolio from inflation and at the same time generate tax-deferred or tax-free retirement assets, using gold as an alternative investment within an IRA. Below is a list of IRA-approved precious metals that can be purchased for a Precious Metals IRA account.
Investing in gold within an IRA not only protects part of your retirement assets from the depreciating effects of inflation on paper currencies, but also gives you the opportunity to earn a significant return on your investment over the long term. Money that is deposited into a traditional IRA is deductible up to the permitted annual limits, while cash in a Roth IRA grows tax-free and can be withdrawn tax-free in retirement. Investing in gold within a precious metal IRA can be beneficial to the bond investor in several ways. IRA-eligible gold coins, bars, and rounds must meet a number of Internal Revenue Code requirements to be held in a self-directed IRA.
Precious metal IRAs are usually self-regulated IRAs, a type of IRA in which the custodian bank allows more diverse investments in the account. However, the copper is added in addition to the pure gold content, so that the coin is guaranteed to contain the specified amount of pure gold. Of course, you can buy IRA-approved gold outside of an IRA and store it in your home or elsewhere.
