Precious metals invested in a self-directed IRA must be stored in an approved depository such as the Delaware Depository. Your IRA custodian may recommend a custodian, but you can choose one yourself that meets the requirements of the Internal Revenue Code. The main benefits of investing in precious metals through an IRA are tax benefits. By using an IRA to buy precious metals, the investor saves taxes either now or in the future.
The specific tax benefits depend on whether you choose a traditional IRA or a ROTH IRA. Once you have the money in your possession, you have 60 days to transfer it to your new self-managed IRA account. In any situation, the custodian bank purchases the precious metals on your behalf and arranges delivery to a third facility specialized in protecting precious metals. If you’re interested in owning gold or investing in its future value, a self-directed Gold IRA account could be a good way to do that.
Your standalone IRA custodian can help you arrange for your existing IRA to be extended or transferred to a precious metal IRA. Please contact either your IRA custodian or the custodian of your choice to find out more about the fee structure. If the IRS determines that the day your IRA gold got into your home was the date of “distribution,” you could end up paying additional penalties and additional taxes owed from the time it was distributed. Funds can either be transferred from one custodian bank to another, transferred from one retirement account to another, or deposited into a new IRA account.
As long as there is gold on this earth, it is not too late to open your own IRA for self-directed precious metals. As mentioned above, a Gold IRA allows investors to stash their money in gold or other precious metals. Although IRAs used to be limited to holding American Eagle gold and silver coins, IRAs can now invest in gold, silver, palladium, and platinum bars and coins approved by the IRS. You can’t add gold that you already own to a self-directed IRA, even if it meets all the requirements of the Internal Revenue Code.
All products that do not fall within these areas, with the exception of American Gold Eagles, are not eligible for IRA contributions. In addition to contributing to an employer-sponsored 401 (k), you can also contribute to a Roth IRA, Traditional IRA, or Self-Directed IRA.
