A gold IRA or precious metal IRA is an individual retirement account that allows you to hold physical gold or other approved precious metals in custody for the benefit of the IRA account owner. It works just like a regular IRA, only instead of holding paper assets, it contains physical coins or ingots. Gold IRAs are appealing to investors who want to diversify their retirement portfolio. You can't own physical gold in a traditional IRA, although you can invest in a variety of assets with exposure to gold, such as shares in gold mining companies or gold exchange-traded funds (ETFs).
IRAs are popular for retirement savings because of their tax benefits. If you want to invest in precious metals, a gold IRA allows you to combine the advantages of IRAs and investing in precious metals. Learn about Gold IRAs, discover tips for making sound Gold IRA investment decisions, and examine our selection of the best Gold IRA providers. To achieve this, investors must work with a reliable and reputable IRA Gold company to facilitate the process.
In addition, the IRS only permits specific gold coins, such as the American gold eagle or the Canadian maple leaf. You can set up the SDIRA as a traditional IRA (tax-deductible contributions) or a Roth IRA (tax-free distributions). The rules for gold IRAs require you to store eligible precious metals in a national warehouse, bank, or external trustee approved by the IRS. However, because gold IRAs are a type of self-directed IRA, they can maintain alternative investments as long as they comply with IRS rules.
Still, a Gold IRA can be a good option for investors who want to diversify their retirement accounts and also take advantage of the hedging benefits offered by the yellow metal against other financial assets, such as paper money and stocks. Rosland Capital specialists help clients choose precious metals that meet IRS standards for Gold IRAs. For gold IRAs, government regulations describe what type of gold can be held in the account and where it will be stored. For that reason, an increasing number of retired investors are turning to gold IRAs to diversify and protect their portfolios against market volatility and inflation.
Before opening a gold IRA, keep in mind that it's not the only way to invest in gold with your retirement funds. That said, since the Great Recession there has been a surge of announcements encouraging retirement savers to convert their savings into cash into precious metals within an Individual Retirement Account or Gold IRA. If you want to have physical gold in an IRA, the first step is to open a self-directed IRA (SDIRA) that you manage directly with a custodian.