A gold IRA is a self-managed individual retirement account that invests in both physical gold and other precious metals. A gold IRA often has higher fees than a traditional IRA or Roth IRA, which invests exclusively in stocks, bonds, and mutual funds. A gold IRA is a type of self-managed individual retirement account (IRA) that allows you to own gold bars. In a regular IRA, you can’t own physical gold, although you can invest in a wide variety of assets that are invested in gold, such as stocks of gold mining companies or exchange-traded gold funds (ETFs).
Gold IRAs are a special type of self-directed IRA that allows you to invest in physical gold and other precious metals, such as silver, platinum, and palladium. Investing in a gold IRA requires the services of a custodian bank, a broker to purchase gold, and an approved depositary to store gold. Like other self-directed IRAs, Gold IRAs can be Traditional or Roth. Many of the custodians and brokers that open established IRAs that invest in traditional assets are unable to open and operate an SDIRA, including a gold IRA.
Many people who want to avoid this risk instead have their Gold IRA company carry it out as a transfer from institution to institution instead of taking it on themselves. Once the money is received by the new self-governing IRA custodian, your Allegiance Gold representative will help you choose the IRS-approved coins and the custodian to store your precious metals. Popular gold IRA companies include Orion Metal Exchange, Birch Gold Group, Red Rock Secured, Gold Alliance, Oxford Gold Group, and Goldco. In addition to the account depository, the Gold IRA Company coordinates the tasks of the custodian, the facility where the precious metals in your IRA are physically stored.
Most gold IRA companies recommend or require that you work with a specific custodian and custodian, although some give you a choice of two or more. Allegiance Gold offers a streamlined process with a senior portfolio manager and an IRA specialist to help you do just that. Similar to any retirement account, with your Gold IRA or Custom Precious Metals IRA, you invest your retirement savings based on a specific tax treatment (before or after tax) and then accept distributions in the future. The IRS does not allow popular gold coins such as the South African Krugerrand or British sovereign coins to be stored in a gold IRA.
Many people who open gold IRAs use funds from another IRA to do so, but it’s not a good idea to convert your entire nest egg into a gold IRA. They also perform the necessary administrative functions to ensure that your Gold IRA complies with all IRS regulations. It should be emphasized that a gold IRA is only necessary if an investor wants to invest in physical gold bars, coins and gold bars. Making a mistake, even if it happens accidentally, can be very costly. So it’s worth knowing what the IRS will and won’t let the IRS do with your Gold IRA.
A gold IRA company will help you set up your account and sell you the gold (or silver) coins or bars that fund it. Most types of retirement accounts qualify to be fully or partially tax-deferred and transferred to a gold IRA or a custom precious metals IRA with no penalty.