The Simple Strategy of Investments in a Gold IRA

People who invest in gold and other precious metals believe these assets are critical to survival if the global economy faces trouble. They feel that in times of crisis, gold and other precious metals may present a universal form of currency. That may be true, but you can also build wealth for retirement with a gold IRA in any economy. This article explains how to invest in gold with a self-directed IRA.

What Is a Gold IRA?

A gold IRA is a self-directed retirement plan that allows you to invest in many different alternative assets.You can invest in gold with other self-directed plans, Stacks of gold coins and gold bars that can be bought with gold IRAs.too. Self-directed solo 401(k)s, health savings accounts and education savings accounts can use precious metals to build wealth.

Gold and other precious metals present a solid, tangible investment strategy provided you know the rules to invest with your IRA. In fact, precious metals in your portfolio can help you create appropriate diversity and allow you the potential to score tax-sheltered gains if you decide to sell when gold prices start to rise.

How to Invest in Gold in a Self-Directed IRA

  • Self-directed IRAs that invest in gold are commonly called gold IRAs, but these accounts can also invest in other precious metals such as silver, platinum, and palladium.
  • Your IRA purchases the asset, and it’s titled in the name of the IRA.
  • Precious metals must be physically held in a depository in your IRA’s name. This protects the tax-advantaged status of the assets.
  • Some IRA custodians, like Advanta IRA, have relationships with depository facilities for precious metal storage.
  • Not all precious metals are permissible assets in gold IRAs. Know the rules for IRA approved precious metals before you invest.
  • If you decide to sell any precious metals owned by your IRA, all income is deposited directly into the account on a tax-sheltered basis.
  • You can take a distribution of your precious metals—but if you do so before you reach retirement age, you’ll pay tax and early distribution penalties.

Make Your Investments Wisely

It is critical to understand IRA investment restrictions set forth by the IRS. For example, jewelry cannot be purchased in your IRA. Anything deemed a collectible by the IRS is not permissible. Also, only certain types of coins are approved holdings in IRAs. So, make sure you do your research before you invest. But you should always check with the proper professional to ensure any precious metals you’re considering are IRS-approved assets.

Even in times of economic challenges, you can make sensible investments in tangible assets with gold IRAs that have the potential to build wealth for your retirement. Gold is often touted as a potential hedge of sorts to stock market downturns, as the cost of gold typically rises during these times. So, it’s worth considering.

If you’d like more information on investing with a gold IRA, contact Advanta IRA.

Additional reading:

The Basics of Precious Metals IRAs

How Safe Are Your Retirement Savings When Stocks Tumble?

What Are Stock Market Alternatives for IRAs and Other Investors in 2022?

 

This article was first published on March 19, 2020 and has been updated with current information.

About Scott Maurer

Scott is an attorney and a graduate of the University of Florida Law School. Scott started his career with Advanta IRA in 2006. His experience with various investment types and their unique processes makes him an invaluable asset. Scott holds the designation of Certified IRA Services Professional (CISP) and leads engaging seminars and webinars that educate the public on the intricacies of self-directed IRAs.