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.
With that being said, 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:
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 5 best precious metals IRA companies of 2023 to help make your decision easier!
>>See our list of the top 5 precious metals IRA companies (cash sales also available).
With that said, let us move on to taking a look at what a gold IRA is.
A gold IRA, also known as 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.
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.
>> Take action today and learn how to protect your hard earned savings by requesting a FREE gold IRA 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 2022, your modified annual income must be less than $144,000.
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 experincing 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 for 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 and 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 actually 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 would 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 5 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 stocks and bonds 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.
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. In fact, 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.
>> Take action today and learn how to protect your hard earned savings by requesting a FREE gold IRA guide!
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 rollover 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 of gold IRA companies here<<.
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 gimmics 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 are in violation of 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:
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.
As we have touched on earlier, investing in precious metals through an IRA 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.
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 that will help you adhere to the IRS guidelines and hold your hand throughout the setup process.
>>See our recommendation of the top ranked gold IRA companies here.<<
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 4 steps when opening a gold IRA next:
1. Select Your IRA Plan
For starters, to invest in precious metals you have to start with a self-directed IRA. As an investor, you can begin a new IRA account, or roll over from an existing retirement account. It is key to speak with a tax advisor and precious metals expert to make sure that you follow regulations and that any retirement accounts you currently hold are eligible for a gold IRA transfer or rollover, or other precious metals IRA.
2. Select A Precious Metals Custodian
Second, gold IRA assets need to be stored with a custodian per IRS regulations. So, working with precious metals investing experts, like those at Augusta Precious Metals or Goldco, will help you find a custodian experienced with gold IRA investing. That way, you’ll ensure that your self-directed IRA is set-up correctly.
3. Select Your Precious Metals
When choosing precious metals, it is important to remember that they need to meet certain IRS rules and regulations to avoid retirement mistakes when investing. Working with a precious metals specialist will ensure that you are choosing the right types of gold, other precious metals or crypto.
4. Purchase Precious Metals
Once you have chosen your desired metals as an investment, you can purchase them and work with your custodian regarding storage. The custodian will keep your assets safe and secure at a bullion depository so that they will be available when you need them.
We have reviewed and rated the top 5+ 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.
|Company||Reviews||Annual Fees||Investment Minimums (IRA)||Preferred Custodian||Free Gold Kit|
You can read more about each precious metals company in our 5+ Best Gold IRA Companies Of 2023 (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.
There has never been a better time to invest in gold, silver, and alternative assets (cryptocurrencies like Bitcoin or Ethereum) than today. With the ease of setting up a gold IRA or crypto IRA, you can go from worrying about inflation and what that would do to your retirement savings to complete confidence in the security of your wealth.
But choosing the right precious metals company to invest with can be extremely difficult unless you know what to look out for.
When reviewing gold IRA and crypto IRA companies it’s critical to compare the ratings and reviews by looking at independent authority sources. We look at the scores given by using 5 independent rating sources that include the Better Business Bureau, Business Consumer Alliance, TrustLink, TrustPilot, Ripoff Report, and more.
We have looked into:
As well as the best online gold and trading company BullionVault.
We believe it is. Throughout history, gold and silver prices have moved in the opposite direction of paper assets and can, therefore, provide a good hedge against inflation. Past performance doesn’t guarantee future gains, but the numbers show that the weaker the dollar has become in the past, the better gold generally has performed. In fact, the relationship between gold and the dollar is often seen as an inverse one.
Traditional IRA accounts may not be enough to provide for you and your loved ones, post-retirement. Not if the economy remains as uncertain as it has looked recently.
For eons, investors have looked to gold to help them potentially offset losses due to economic turmoil. A gold IRA or precious metals IRA permits you to diversify a portion of your retirement portfolio — including pre-existing IRAs and former 401k(s) with previous employers — by actually owning physical gold (and silver) within a retirement plan. As a result, you can securely possess physical precious metals in a tax-deferred account.
Indirect forms of investing in gold are much riskier than physical metal. You are relying on any third party individual or company to look after your wealth for you, and depending on the company’s success or failure, you risk losing your investment. With physical gold, you are in control of your wealth. Physical gold offers you that layer of protection and security which Gold Exchange Traded Funds (ETFs), gold mining stocks and funds do not.
When investing in a gold IRA, you will get the same tax benefits as a traditional IRA, while actually owning physical gold coins or gold bars.
While some coins can be included in precious metals IRAs, only certain coins are IRS approved for inclusion in IRAs. In fact, not all bars or bullion are IRS approved. The IRS maintains a list of acceptable forms of precious metals for IRAs. You can be certain that a reputable gold IRA company offers a variety of metals for IRAs within IRS guidelines.
Yes. While established gold IRA companies often recommend Equity Trust as their preferred custodian and Delaware Depository for storage, you can choose your own custodian and storage companies.
Non-IRA precious metals, yes. Not metals for an actual IRA. IRS rules forbid keeping your IRA precious metals at home or in a standard safety security box. They must be held by an approved non-bank trustee or a bank within IRS guidelines that restricts access. In other words, just like a traditional IRA, the access to the precious metals in your precious metals IRA must be restricted in specific ways to ensure deposit and disbursement laws are followed.
No. Like all investments, the future value of precious metals is not guaranteed and can rise or fall based on a variety of market influences. But we believe physical precious metals are your safest bet to hedge against a stock market crash, inflation, and the debasing of the dollar.
At age 59½, you or the beneficiary of your precious metals IRA can start taking penalty-free distributions from the account, according to the IRS.
Usually around two-three weeks, although each application is different and the amount of time varies on a case-by-case basis.
The customers will receive top-notch service and specialized account setup knowledge provided by the gold IRA company’s IRA Processing Department throughout the process from start to finish. They do 95% of the paperwork with them. Customers can feel safe knowing they will be kept up to date every step of the transfer process by daily calls or e-mails from the IRA Processing team with any gold IRA company listed on How To Invest Gold. These companies also often provide lifetime account support.
For over a decade, our mission has been to provide investors and retirees with all the information they need when it comes to precious metals and cryptocurrency investing.
Not only do we provide a complete guide on the best ways to invest in precious metals, but we have also carefully vetted the best precious metals companies in the US to help you choose the best provider for your investment needs.
We believe that investing in precious metals and cryptocurrencies through your 401(k)/IRA is one of the best ways to invest in this asset class, due to the tax-saving component. A gold IRA or crypto IRA is the best way to protect your retirement account against an unstable market.
Disclaimer: The owner of this website is not licensed as an investment advisor and, accordingly, does not make any recommendations regarding clients’ personal investment portfolios. It is recommended that you carefully evaluate and research the risks and rewards associated with investing in alternative assets such as physical precious metals and cryptocurrencies before you make a purchase. Learn more in our Terms of Service.