What can I buy with an IRA for gold and other metallics?
The modern gold rush is evident in everything, from Super Bowl commercials to financial advisors encouraging you to purchase gold. Many people have asked our staff over the past six-months if they can buy gold and other precious metals with their retirement funds. Yes, if your retirement plan is self-directed such as Entrust New Direction IRA’s, you may be able to invest in precious and rare metals. This article will help answer the following question: What type of gold are you looking for? Visit our website and learn more about gold IRA rollover kit.
It can be difficult to make sense of the many different metal options and coins available on the market. Below is a simple step by step guide to help determine if the chosen metal is acceptable for IRA investments. No matter which metal you choose, the IRS will not permit you to own the metal. The metals will be kept by the IRA custodian/depository.
First, let’s talk about the basics. You can only invest in gold, silver, platinum, and palladium through your self-directed IRA. The key word is “invest”. Your IRA cannot invest in collectibles – you IRA is only investing the metal itself and not in rare or beautiful coins. The metal must be in a specified form (usually coins, bars, or pure gold) and/or purity. The quality of the material will be determined by its purity or fineness.
Many of us associate gold investment with the 400 ounce gold bars we’ve seen in movies. They are extra heavy (around 25 pounds), and very expensive, given recent increases in gold prices. Unfortunately, IRAs are often priced outside of the gold market. However, there are many other options. There are smaller bullion units that can be purchased, but they must meet certain requirements such as purity or fineness. You can also choose coins.
Initially, all coins were deemed collectible by IRS and IRA investments in coins were not allowed. After realizing that a 400 ounce of gold bullion would be prohibitively pricey for most IRAs, Congress updated the rules to allow IRAs ownership of certain coins.