FAQ About Precious Metals IRAs Including Gold & Silver IRAs

Image courtesy of [Boykung] / FreeDigitalPhotos.net

Image courtesy of Boykung / FreeDigitalPhotos.net

One common investment into a self directed IRA is precious metals. Many people like having a gold backed IRA because they own real gold. It doesn’t matter if you decide to have a gold IRA, silver IRA or other precious metals IRA you will own the real precious metal that you add to your IRA. If you are interested in a precious metals IRA or want a gold IRA investment take a minute and make sure you understand some of the most common questions with this type of IRA. Below are the most common questions we get:

Q: How is the precious metal held and stored?

A: All precious metals are stored in our secured vault with Brinks. Tax law requires that a licensed custodian hold precious metals for your IRA. All metals are counted and verified upon receipt in the Brinks vault. You will receive an email notification along with a certificate of ownership when the metals are verified at the Brinks vault.

Q: Are there any taxes?

A: Holding precious metals is no different than any other investment held in your IRA. Any growth or gains in the metals are deferred until you start taking distributions from your IRA account.

Q: What types of metals can be held in the IRA?

A: Only gold coins that are legal tender with 0.9999 fineness are allowed in an IRA, with the exception of the American Gold Eagle, which has a fineness of 0.9167% fineness. Other gold coins allowed to be put into an IRA include the American Buffalo, Canadian Gold Maple Leaf, and Australian Gold Nugget. The popular South African Krugerrand is not permitted to be included in an American IRA because it’s fineness is only 0.9167%

The regulations that govern gold contributions to IRAs call for a minimum purity of only 0.995%, most gold bullion bars are 0.9999% pure.

Below is a list of the most common precious metals acceptable for being held in a IRA account:

Gold

  • American Eagle coins
  • Australian Kangaroo/Nugget coins
  • Austrian Philharmonic coins
  • Canadian Maple Leaf coins
  • Credit Suisse – Pamp Suisse Bars .999
  • U.S. Buffalo Gold Uncirculated coins (no Proofs)
  • Bars and rounds manufactured by a NYMEX or COMEX approved refiner/assayer or national government mint and meeting minimum fineness requirements2

Silver

  • American Eagle coins
  • Australian Kangaroo/Nugget coins
  • Austrian Philharmonic coins
  • Canadian Maple Leaf coins
  • Mexican Libertad coins
  • Bars and rounds manufactured by a NYMEX or COMEX approved refiner/assayer or national government mint and meeting minimum fineness requirements2

Q: Can my annual contribution be bullion or coins that I personally own?

A: No, Any annual Roth or Traditional contribution must be in the form of cash (currency). Rollovers and Transfers, though, do not need to be in the form of cash.

Q: Can I take distributions of the physical metal instead of taking cash?

A: Yes. Distributions from an IRA can be cash or non-cash. The only issue will be that the distribution will usually be taxable to you (except for a Roth IRA), which would mean that you would either have to liquidate enough metals to pay the taxes or you would have to use cash from your personal accounts to pay the taxes.

Author: , Self Directed IRA Professional
1.801.683.9291
[email protected]

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