What is IRA Approved Gold
It can be a good idea to invest in a Gold IRA, but before you start, learn what types of gold are accepted. Read on.
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Originally, metals or coins are considered collectibles and are not allowed in an IRA.[1]
However, some types of gold are exempt from this prohibition according to IRC Section 408(m)(3). They are what we call IRA-approved gold.
Keep reading to find out which types of gold the IRS accepts in a Gold IRA.
Two Types of Gold
There are two types of gold when it comes to investing. Only 1 type is allowed in a Gold IRA.
- Bullion gold
These are gold bars and coins that have a very high purity level of at least 99.5%. Its value comes purely from its gold content and weight.Gold bullion is allowed in a Gold IRA, as the price is more standardized and easily quantifiable.
- Numismatic gold
Also known as collectibles, investors buy these primarily for their rarity or cultural value. Its value depends on how much collectors perceive it to be worth, just like art.Numismatic gold cannot be added to a Gold IRA. This is because a gold price based on perception is hard to agree on.
You must purchase IRA-approved gold through a Gold IRA company. You can only invest in gold bullion that meets IRS standards. Whereas with regular gold, you can purchase from any gold dealer and buy any type of gold.
What Is IRA-Approved Gold?
IRA-approved gold is a gold bar or coin that meets the requirements set by the IRS for retirement accounts.
This includes:
- Gold that has a purity or fineness of at least 99.5%[2]
- Gold coin minted by the government[3]
- Gold American Eagle or any official US bullion coin[4]
The only exception to these rules is the Gold American Eagle, which only has a purity of 91.67%. But it's still allowed under a Gold IRA by the IRS.
Examples of IRA-Eligible Gold
Here are some gold that the IRS allows to be part of an IRA. All gold in this list has a fineness of 99.99%, except for the American Eagle.
U.S. Mint:
- Gold American Eagle
- Gold American Buffalo
Royal Canadian Mint:
- Gold Maple Leaf
- Gold Canadian Eagle
- Gold Lucky Dragon
New Zealand Mint:
- Gold Liberty
- Gold Innovation | Space Shuttle
- Gold Innovation | Motor Vehicle
- Gold Washington Monument
- Gold Independence Hall
- Gold Freedom
- Gold Liberty
The Perth Mint:
- Gold Australian Striped Marlin
- Gold Phoenix
- Gold Australian Sea Turtle
- Gold American Bald Eagle
- Gold Great Barrier Reef | Stingray
- Gold Australian Saltwater Crocodile
Royal Dutch Mint:
- Gold Freedom & Hope
- Gold Valor
Others
- Gold USS Texas (Scottsdale Mint)
- Gold Military Guinea (East India Company of London)
- Gold British Lunar Series (UK Royal Mint)
While this list is mostly about coins, any gold bar that matches the purity standards required by the IRS will be allowed as well.
You can only store the assets you have in a Gold IRA in an IRS-approved depository, such as Delaware Depository or Brink's. You cannot store the gold yourself, or you will be penalized.[5]
Steps to Buy IRA-Approved Gold
Investing in IRA-approved gold is not as straightforward as physical gold investing.
Here's what you need to do:
- Open a self-directed IRA with a Gold IRA provider
Create your Gold IRA account with a licensed provider. Your Gold IRA provider will do everything for you, including purchasing and storing your assets.
- Highest buyback price guarantee
- Free silver promotion
- A+ BBB rating
Visit Site Read Review 
- Priority on education
- 100% satisfaction guarantee
- No fees up to 10 years
- A+ BBB rating
Visit Site Read Review 
- Dedicated specialist
- Low minimum
- Slightly lower fees
Visit Site Read Review Continue reading to learn more about each provider later.
- Fund your account
If you have an existing 401(k), IRA, or other retirement account, you can rollover funds to your new Gold IRA without penalty. The Gold IRA provider will even help with the rollover paperwork.Or you can make new contributions by directly transferring funds to your provider.
- Select your gold
Select which bullion gold coin or bar you want to invest in. Your Gold IRA company will have a list of IRA-eligible gold to choose from. - Hold until distribution
Gold IRAs are designed to be held long-term. You cannot withdraw before age 59-1/2 or there will be a 10% penalty (unless you have a valid exception).
There is no maximum amount for gold IRA rollovers. Additional contributions are based on IRS annual contribution limits, which is $7,000 in 2024 ($8,00 if you're 50 or older).[6]
Where to Buy IRA-Approved Gold
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Free Gold IRA Kit - | Gold IRA Company Integrity Checklist - | |
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Goldco: The required minimum purchase at Goldco to start a gold IRA is $25,000. Goldco’s preferred Custodian charges a flat annual account service fee which includes a one-time IRA account set-up fee of $50, as well as a $30 wire fee. Annual maintenance is $100, and storage is $150 for segregated storage or $100 for non-segregated storage. Fees for gold storage and custodianship can vary depending on the company you select to handle these services (required by the IRS, as all IRA assets must be managed by a custodian). Depending on the Custodian, storage fees can range from $10 to $60 per month, or as a percentage of assets, from 0.35% to 1% annually. Goldco does not charge any storage fees for cash transactions over $25,000. | ||
Your chosen Gold IRA provider will have a readily available list of IRA-eligible gold for you to choose from.
Here are some of the most reputable Gold IRA companies. All are currently rated as A+ by the Better Business Bureau (BBB).
- Goldco
Goldco is one of the popular choices for a Gold IRA as it offers various gold coins, great support, and the highest buyback price guarantee. The minimum investment starts at $25,000. - Augusta Precious Metals
Augusta is another great option, especially for its education and customer service. It also features account lifetime support. However, it has a higher minimum of $50,000. - American Hartford Gold
Check out American Hartford Gold if you only want to invest or roll over a little bit of your funds to a Gold IRA. Their minimum is just $10,000. - Birch Gold Group
Birch Gold Group is one of the oldest precious metals IRA companies. It has a solid reputation and lower minimums and fees than some competitors. You'll be matched with a specialist for the entire lifetime of your account.
If you want to see more options, review this list.
Gold IRA Company Integrity Checklist
Free report and checklist that helps consumers compare and choose a reputable gold IRA company
Free Gold IRA Kit
- Up to $10,000 in free silver for eligible customers
- Highest buyback price, guaranteed
- Endorsed by Sean Hannity and Chuck Norris
Free Information Kit
- Free "insider" info on gold & silver
- 1-on-1 care with a dedicated specialist
- Endorsed by Ben Shapiro and Ron Paul
Is a Gold IRA a Good Idea?
Determining if a Gold IRA is right for you will ultimately depend on your investment goals.
A Gold IRA is good for a long-term investor who wants to enjoy tax advantages, avoid storage issues, and withdraw only upon retirement.
On the other hand, it's bad for an investor who wants the freedom to sell their gold whenever they want.
Not all Gold IRAs are tax-free. Only a Roth Gold IRA offers tax-free distributions. In a Traditional Gold IRA, your contributions are tax-deductible, but distributions are subject to income tax.
Bottom Line
Not all types of gold are accepted in an IRA. Only those that have a purity of 99.95% and are minted by a national government are accepted, except for Gold American Eagle.
Nonetheless, your Gold IRA provider should be able to help you purchase IRA-approved gold so it shouldn't be too much of a hassle.
References
- ^ IRS. Issue snapshot - investments in collectibles in individually-directed qualified plan accounts, Retrieved 05/13/2024
- ^ CME Group. What is the Precious Metals Delivery Process?, Retrieved 05/13/2024
- ^ IRS. Publication 590-A (2023), Contributions to Individual Retirement Arrangements (IRAs), Retrieved 05/13/2024
- ^ US Code. 31 USC 5112: Denominations, specifications, and design of coins, Retrieved 05/13/2024
- ^ WSJ. A Couple Stored IRA Gold at Home. They Owe the IRS More Than $300,000., Retrieved 06/28/2024
- ^ IRS. 401(k) limit increases to $23,000 for 2024, IRA limit rises to $7,000, Retrieved 06/28/2024
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