Traditional gold IRA distributions before the age of 59 are subject to a 10% penalty. The IRS allows some gold coins, such as American Gold Eagle, Canadian Maple Leaf, and American Buffalo, to name a few. Physical gold can play an important role in a well-diversified retirement portfolio. However, certain rules must be followed if you want to take full advantage of the full benefits that an individual retirement account (IRA) can offer for gold or other precious metals. If you want to have your gold valued, it’s usually better to wait until you’ve liquidated your IRA assets and taken possession of your metals.
However, the IRS has introduced additional tax filing and record keeping requirements for gold IRAs due to the more complicated assets they own. As factors are constantly evolving and prices fluctuate by market, call Allegiance Gold directly to get live prices and find out how you can liquidate your precious metals from an IRA or personal investment. IRA rules for precious metals include some tax breaks, but that also means that there are limits to when you can access your Gold IRA assets. While you can gain exposure to gold in a normal retirement account by owning stocks or funds, you can’t hold the physical asset in an IRA or 401 (k).
Gold IRAs are individual retirement accounts that hold physical gold as an investment instead of traditional stocks and bonds. A custodian can be a bank, a credit union, an escrow, a brokerage firm, or a popular gold IRA company such as Birch Gold Group or Oxford Gold Group. The IRS does not allow popular gold coins such as the South African Krugerrand or British sovereign coins to be stored in a gold IRA. Storing your IRA gold at home can be considered a distribution, meaning you lose your tax-deferred benefits and could be punished with a fine if you’re under 59½ years of age.
A gold IRA rollover is the process of transferring assets from an existing traditional IRA or employer-sponsored retirement plan to a new or existing gold IRA. The custodian is responsible for securely storing your gold and precious metals until you ask your IRA gold custodian to sell or distribute your gold to you. Once you’ve opened a self-employed gold IRA, you can transfer cash to the account to fund your purchase of physical gold. Before you open a gold IRA, keep in mind that it’s not the only way to invest in gold with your retirement funds.
A precious metal IRA is a self-managed IRA that allows you to hold certain types of precious metals (gold, silver, platinum, and palladium) as part of your overall asset mix.