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Thank you for visiting our gold IRA guide. In this guide, you will learn everything you need to know about owning physical gold in an Individual Retirement Account (IRA), gold 401(k) rollover and transfer rules, how to start a gold IRA, what are the best gold IRA companies, and much more.
You can use our gold IRA guide TOC list below if you want to jump straight to any section:
There are several reasons why someone might consider investing in a gold IRA. First, gold is a tangible asset that can be a good addition to an investment portfolio because it does not lose its value in the same way that other assets, such as stocks or bonds, can.
Gold has been a store of value for centuries, and it has the potential to provide a hedge against inflation and economic uncertainty. Additionally, gold is widely considered to be a safe haven asset that investors can turn to in times of market volatility. It is seen as the most crash-proof investment since gold can never lose all its value.
Investing in a gold IRA can also provide diversity to your investment portfolio, which can help to reduce your overall risk. Finally, a gold IRA can offer tax advantages, as the Internal Revenue Service allows certain types of gold investments to be held in retirement accounts.
In other words, it allows you to take advantage of a simple and easy IRS loophole. This loophole allows you to hold physical gold and silver with the money you already have saved in your retirement account, completely tax and penalty-free.
Precious metals will help you:
To learn more, check out this video about the benefits of investing in a gold IRA:
Our goal is to provide you with the most accurate and reliable information to help you identify the best option to grow and protect your wealth today.
With careful and extensive research, we have reviewed and rated the 9 best precious metals IRA companies for 2024 to help make your decision easier!
>>See our list of the top 9 precious metals IRA companies (cash sales also available).
With that, let us move on to taking a look at what a gold IRA is.
A gold IRA, also known as a precious metals IRA, gold-backed IRA, or Roth gold IRA, is a specialized type of Individual Retirement Account (IRA) that allows investors to hold physical gold bullion or coins and other precious metals as qualified retirement investments.
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Specifically, these special forms of IRA retirement vehicles are actually self-directed IRAs that are meant to hold physical gold coins and gold bars of high purity, as well as silver, platinum, and palladium if you so choose.
And thanks to the new IRS rules and regulations, you are now able to own high-purity (IRA-approved) and investment-grade gold bullion and the other precious metals in their tangible form in such accounts. Best yet, this provides a safe way to protect your retirement savings, while also reaping the same tax advantages as a conventional IRA.
>>Request the FREE Retirement Savings Survival Guide
There are two types of gold IRAs available:
With a traditional-based IRA (Self-Directed-IRA or SDIRA), you do not pay tax on the contributions you make to your gold IRA from your income until much later in retirement when you take distributions. And you can start taking distributions without penalty when you are age 59½.
To give you an example, if you make $60,000 one year and decide to contribute $5,000 into your gold IRA, you will only pay the tax that year on $55,000.
In addition, by the time you pay tax on that $5,000, the gold you have spent it on could well be worth a lot more. And this possible rise in asset value could mean that you will end up getting some of your tax bills effectively paid for free.
Also, a traditional IRA comes with a ‘Required Minimum Distribution (RMD)’, starting at the age of 72, meaning that you must withdraw a certain amount from your IRA each calendar year. Accordingly, this RMD also applies to a gold IRA.
In contrast to a traditional IRA, with a Roth-based gold IRA, the contributions you make are NOT tax-deductible.
But on a positive note, when you make withdrawals from your gold IRA, you do not have to pay taxes on your investment gains. So, if the price of gold has increased significantly, this tax advantage may be a huge benefit.
Additionally, with a Roth-based gold IRA, the Required Minimum Distribution does not apply. Instead, an upper-income limit applies to Roth IRAs. And as of 2024, your modified annual income must be less than $161,000 as a single tax filer or $240,000 as a joint tax filer.
Now, let us look at more reasons why you should invest in a gold IRA.
Another reason you may want to invest in a gold IRA is to protect your retirement savings account and make sure your assets are safe and secure, while also ensuring that your wealth will appreciate.
By investing in gold and other precious metals through your IRA, you can worry less about stock market crashes or inflation (like we’re experiencing right now). Gold will never be worth $0.
Additionally, gold tends to move in the opposite direction of paper assets and increases in value when the dollar is debasing. That’s why it is important to diversify your investment portfolio and hold a tangible, physical asset in your retirement account.
The sad truth is that because of Bidenflation the US creeps further into debt each day and it is taking your IRA/401(k) along with it. In fact, your IRA/401(k) has never been more in danger than it is today. And as a result, big banks may be coming after your savings and retirement accounts.
For certain accounts, they could help themselves to your money to stay solvent during this looming financial crisis. And worst of all, it is all going to be 100% legal because of the Dodd-Frank Act. Luckily, you can protect yourself by investing in IRAs that will not disappear if the dollar does. And the only secure financial asset that has stood the grueling test of time is gold.
Not only does a gold IRA permit individuals to diversify any portion of their retirement portfolio — including pre-existing IRAs and former 401k(s) with previous employers — but it also allows investors to own physical metals within that retirement plan. With that, investors can securely possess physical precious metals in a tax-deferred account.
However, many investors do not know how easy and safe it can be to invest in gold, particularly through a gold IRA. As already mentioned, a gold IRA is subject to the same rules as a traditional IRA, which allows investors with existing retirement assets to easily invest in gold.
Gold is protection and serves as an inflation hedge. Gold should not be seen as an investment, but as financial insurance.
First of all, the stability offered by gold is unmatched. But the major single reason to invest in a physical gold IRA is that precious metals are the smartest and easiest means of protecting your retirement account against the ravages of inflation and other manifestations of economic chaos.
Like the economic crisis, we are in right now!
The deal is that as money gets inflated away by the meddling government, it decreases in value. Fortunately, precious metals do not suffer as much at the hands of inflation.
Quite the opposite… This asset class may increase in value as the economy suffers and the American dollar declines over time.
Like any other IRA, a gold IRA offers the ability to accrue gains tax-free, while also allowing you the benefit of owning physical gold coins or gold bars.
Besides, there are no unfortunate tax consequences or hard requirements of declaring precious metals from the IRA to the IRS (since they are already aware of it).
And if you decide to transfer your gold IRA assets to another approved investment or retirement plan down the road, you will not suffer any tax problems or penalties.
When deciding to liquidate, our top rated gold IRA companies have buy-back programs and will offer you a much better price than a regular coin dealer or broker.
As mentioned, diversifying your assets with physical gold and silver can help you:
Additionally, because the beta or correlation between stocks and bonds, compared to gold is extremely low, falling stock and bond prices generally translate to rising precious metals bullion prices.
Typically, when financial conditions show signs of deterioration, as they do now, investors flock to gold and silver to protect their assets.
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That is a proven fact!
Furthermore, it is also important to know that a gold IRA account is not only restricted to precious metals bullion. It can also hold franchises, businesses, stocks, bonds, mutual funds, commodities and futures, mortgages, cash instruments, and other non-collectible forms of investments.
Overall, there is no other form of IRA investment or retirement vehicle, which can hold a larger variety of investments than the self-directed gold IRA.
>>Request the FREE Ultimate Guide to Gold & Silver
Did you know that ever since President Nixon closed the gold window in 1971, gold has actually outperformed both the S&P 500 and the Dow Jones Industrial Average? And this, despite the amazing stock market bull run of 1982-2000.
Gold’s performance in the 21st century has been even more amazing, with gold making more than double the gains of both the S&P and the Dow, which is a strong indicator you can put your trust in this yellow metal.
For example, this graph shows the 30-year pricing history of gold:
As you can see, it shows a steady upward trend.
The bottom line is that including gold within an existing retirement account could improve investment performance by increasing returns, without increasing risk. Or by reducing risk, without adversely affecting returns.
Starting a gold IRA is as easy as 1-2-3!
You can simply roll over or transfer parts or all of any existing retirement account over to a gold IRA. The process is easy and painless and takes about 10 business days.
All you need to do is sell assets in your existing accounts, roll over these funds over to your gold IRA, and use them to buy gold, or whatever metal you prefer. And you don’t have to front extra cash.
Besides, the gold IRA specialists will help you navigate the process without a hitch. You can find our recommendation for gold IRA companies below:
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| Company | Reviews | Annual Fees | Investment Minimums (IRA) | Preferred Custodian | Free Gold Kit |
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$0 | $25,000 | Equity Trust |  |
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$180 | $10,000 | Equity Trust | |
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$0 | $10,000 | Entrust | |
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$80 | $2,000 | Equity Trust | |
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N/A | $5,000 | Equity Trust | |
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$0 | $50,000 | Equity Trust | |
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$100 | $10,000 | Equity Trust | |
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$180 | $10,000 | Equity Trust | |
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$0 | $10,000 | Equity Trust | |
Additionally, you can read more about the rollover and transfer process in the ultimate gold IRA rollover guide.
From the traders of antiquity to today’s most savvy investors, accumulating gold stands the test of time.
Gold is accumulated for a myriad of reasons, including to hedge volatile stock markets, to offset fluctuating commodities prices, and as a safe haven against falling home prices.
That said, if you want to capitalize on consistent growth in value, gold has always proven the safest investment.
Like any other investment, the price of gold has volatility and can go up or down.
That is why it is recommended to diversify your investment portfolio into several asset classes. And you can easily do that by combining, for example, gold and bitcoin (or other cryptocurrencies) in a crypto IRA.
Additionally, it is important to only be dealing with a gold IRA company that has all the appropriate and required licenses, registrations, insurance, and bonds to protect your investment. This means that you should ask for verification of these licenses and other information before you invest any of your savings.
Look for a gold IRA company with an outstanding reputation from objective third parties, such as the Better Business Bureau or the Business Consumer Alliance.
Also, watch out for gimmicks and high-pressure sales tactics. Augusta Precious Metals has created an informational video about what to watch out for:
For the most part, the metals in a gold IRA are going to be decided by their purity. In the case of all four precious metals, whether they can become part of an IRA is related to the amount of precious metals content they have.
Specifically, the rules for each metal are:
Including items that violate this requirement can cause penalties and account liquidations, so the buyer should always be wary. When working with a reputable gold IRA company and custodian and procuring bullion from them, this will rarely be an issue, as they’ll provide advice on what can and can’t be included.
Another important criterion is that the bullion rounds and bars of any of the four precious metals come from a COMEX or NYMEX-approved refinery. This essentially means that only bullion made by reputable mints, whether sovereign or private, is eligible for an IRA.
Most mints of this kind produce rounds and gold bars exclusively with these certificates and specifically label their products as IRA-eligible, so you are unlikely to run into issues when purchasing from recognizable names.
Here are some popular coin choices for a gold IRA:
Gold
Silver
Platinum
PalladiumFor more information, visit our article on the best gold coins to invest in.
You probably noticed that we mentioned an exception in the case of every American Eagle coin, and you might be familiar with the “no collectibles” rule for a self-directed IRA. In reality, this rule remains somewhat murky even after all these years.
The American Eagle is the only coin to have an explicit exception mentioned for both bullion and proof, undoubtedly because it is the national legal tender.
This not only means that American Gold Eagle bullion gold coins that do not meet the purity requirements are eligible but also that proof and uncirculated versions of them can go in.
Any proof coin is generally considered a collectible, which would automatically exclude it from eligibility. On the other hand, eligibility is decided by purity, which coins like the American Buffalo meet.
Many bullion shops will not sell coins such as the proof American Buffalo to an IRA because they are unsure of how the IRS treats them. These coins aren’t normally included in an IRA even though they fit the guidelines to “stay on the safe side.”
In other words, the only proof coins you should feel comfortable adding to your precious metals IRA until greater clarity is presented are American Eagles. If you’re a collector and want to know what coins to invest in, you can visit our article on the best old gold coin to buy.
As we have touched on earlier, investing in precious metals through an IRA or 401(k) rollover has to be done in accordance with the IRS rules and regulations. That is why it is crucial to work with a company that has a good track record working with these types of accounts.
A rollover happens when you receive the distribution from your existing retirement account, and then turn around and deposit it in another retirement account.
In this case, you would need to re-deposit the funds into the new retirement plan account within 60 days. The reason for this is that after the 60-day limit, you would be liable for taxes and other penalties on the money withdrawn.
You can also only roll over the same money once every 12 months to preserve the tax-deferred status of your retirement savings.
A transfer you can do at any time with your existing IRA, as long as the assets go from custodian to custodian. In a direct transfer, the money flows directly from one IRA custodian to another.
This means that the distribution check from the old IRA custodian must be made out in the name of the trustee or custodian of the new IRA account that receives the funds.
In contrast to a 401(k) rollover, transfers may be made as often as you want. You can find out more about the rules and regulations in gold IRA rollover & transfer explained.
Now, let us take a look at how to start a gold IRA.
Once your new precious metals have been purchased, they must be stored according to IRS guidelines for gold or precious metals IRAs. Your choice of gold IRA company will have IRA specialists who will help you adhere to the IRS guidelines and hold your hand throughout the setup process.
Also, your precious metals investment will be stored with a custodian, just like any other IRA asset. And the gold IRA custodians specialize in storing precious metals and have secure vaults set up to keep your precious metals safe.
More importantly, they also carry insurance to ensure that, in the very unlikely event that some metals get stolen or destroyed, your investments will be made whole.
To begin the process of opening a gold or precious metals IRA is simple, especially when you partner with precious metals experts who know the ins and outs of this type of IRA.
Let us show you the easy 3 steps when opening a gold IRA next.
If you are interested in physical precious metals, starting a gold IRA is easy! Simply, fill out this online application and a precious metals specialist will contact you within 15 minutes.
To establish an account, you’ll need to provide personally identifiable information like your social security number. If you don’t have a precious metals custodian company, the gold IRA company of your choice will help you set up an account with one of their preferred custodian companies.
This is the precious metals IRA setup process in short:
To secure your precious metals purchase and understand Goldco’s terms of doing business, you will review, approve and sign a standard customer agreement.
Goldco offers a few options to fund your account: sending funds through a bank wire, or simply mailing a check to our Los Angeles office. If you prefer to pay by check, they’ll even provide a FedEx shipping label, which means you can expedite your precious metals purchase with no shipping costs.
As soon as you have funds in your account, it’s time to start thinking about which precious metals to add to it. You get to pick and then Goldco handles the shipping. Plus, you can choose to have your coins delivered to an independent insured depository, sent straight to you, or even qualify for free storage.
We have reviewed and rated the top 9+ gold IRA companies in the industry to help you identify the best option to protect and grow your wealth today. We have rated each gold IRA company on a variety of factors including BBB/BCA ratings and complaints, customer reviews, annual fees, precious metals selection, storage options, promotions, and buy-back programs. You can request their gold IRA kits directly from the reviews table below:
1. Goldco: Best Overall Gold IRA Provider
2. Birch Gold Group: The Gold IRA Specialist
3. Golden Crest Metals: Best For Integrity & Trust
4. Noble Gold: Most Personalized Service
6. Colonial Metals Group: Best Buyback Guarantee
7. Augusta Precious Metals: High-Income Investors
8. American Hartford Gold: Most Transparent Fee Structure
9. Gold Alliance: Most Affordable Gold IRA
10. American Coin Co: Lawsuit Warning!
11. BullionVault: Best Online Gold & Silver Trading Company
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| Company | Reviews | Annual Fees | Investment Minimums (IRA) | Preferred Custodian | Free Gold Kit |
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$0 | $25,000 | Equity Trust | |
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$180 | $10,000 | Equity Trust | |
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$0 | $10,000 | Entrust | |
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$80 | $2,000 | Equity Trust | |
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N/A | $5,000 | Equity Trust | |
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$0 | $50,000 | Equity Trust | |
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$100 | $10,000 | Equity Trust | |
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$180 | $10,000 | Equity Trust | |
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$0 | $10,000 | Equity Trust | |
You can read more about each precious metals company in our 9+ Best Gold IRA Companies Of 2024 (Reviewed & Rated) article.
Learn what the difference between a gold IRA rollover and transfer is, what are the rules and regulations, how to store your IRA gold, when you can take physical possession of your gold, etc.
Learn the requirements set forth by the Internal Revenue Code for IRA-approved gold and silver bullion.
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