A precious metals IRA is designed to help retirement investors take advantage of the appreciation of non-cash retirement assets. According to rules established and enforced by the Internal Revenue Service, only certain gold assets can be held in a self-directed retirement account.
The IRS has established standards that a precious metal asset must meet in order to be bought, held or sold as a gold IRA investment. The rules for all IRAs, including Gold IRAs and Gold 401k accounts, are explained in IRS Publication 590, Individual Retirement Accounts. Before making a gold IRA investment or conducting a gold IRA rollover, prospective investors should consult this publication for the latest rules and regulations.
Generally, IRS rules prohibit the purchase of “collectibles,” including “artworks, rugs, antiques, metals, gems, stamps, coins, alcoholic beverages, and certain other tangible personal property.” The regulations make a special exception for one, one-half, one-quarter, or one-tenth ounce U.S. gold coins, or one-ounce silver coins minted by the Treasury Department. It can also invest in certain platinum coins and certain gold bullion, silver bullion, palladium bullion, and platinum bullion.
For the purpose of retirement savings, this exception allows you to buy gold. IRA and 401k advisors tend to steer clear of the purchase of physical assets, but gold, especially in a weak financial market, is one of the best, most stable investments you can make. Certain other assets, like silver and platinum can also be held in a precious metal IRA. A self-directed IRA is versatile and can hold both physical and intangible assets like real estate, partnerships, mortgages, franchises, stocks and other investments.
Although a gold backed IRA is self-directed, a custodian or trustee, must hold the assets included in the gold IRA on behalf of the owner. The precious metals IRA custodian. The custodian actually conducts the purchase and sale transactions, maintains all records, files the required reports with the Internet Revenue Service, and generally administers the account.
You may not sell or transfer your personal assets to a self-directed IRA, but you can transfer cash assets from a traditional IRA, 401k or 403b retirement account to a gold IRA. The gold IRA rollover process is straightforward, and if done correctly, the investor will owe no taxes on the transfer of cash into a gold IRA or gold 401k account.
A physical gold IRA is like any other retirement account. It is not guaranteed by anyone, and assets held in the gold IRA can also decrease in value. The custodian of the gold IRA investment will not make investment decisions on the owner’s behalf. It is up to the owner of the Gold IRA or Silver IRA to make investment decisions and direct the precious metals custodian to act on his or her behalf.