Yes, you can invest in real gold or other precious metals for your IRA. Learn about the specific rules for gold IRAs and what you should consider before investing. As with most important financial decisions, opening a Gold IRA isn’t a decision you should make lightly or before you do your research. Make sure you do this through unbiased third-party sources (not Gold IRA companies that have a financial interest in selling you a
Gold IRA).
There are a number of considerations you should consider before investing a portion of your nest egg in gold. It has the same contribution limits and rules for required minimum distributions (RMDs) as normal IRAs. However, it is important to note that the price of gold can and does fall. Therefore, it is best not to invest in the short term. If you take personal control of the physical gold from a standalone IRA, the IRS regards it as a payout, which may require you to pay taxes and penalties for early withdrawals, and in some cases, the IRS is authorized to close your entire account
.
If you already have an IRA or 401 (k), either Regular or Roth, you have the option to convert some or all of your funds into a Gold IRA. This company helps you open and fund your account and connects you to an IRA custodian and a depository institution, both of which must be approved by the IRS. Starting a gold IRA starts with choosing a gold IRA company, essentially a metal dealer, who will sell you gold or other precious metals. When you open a self-directed IRA, you can invest in alternative assets such as real estate, physical precious metals, and cryptocurrencies
.
As soon as money is available in the new IRA account, an account representative reviews the current precious metal options that a consumer can buy. For this reason, the terms “silver IRA” or “precious metal IRA” are sometimes used. While it may sound tempting to keep physical gold in your retirement account, gold IRAs aren’t a good choice for every investor. Some IRA companies guarantee to buy back the gold from you at current wholesale prices, but you could still lose money if you close the account, which is not usually the case when opening and closing regular IRAs
.
The IRS also sets rules about the size, type, and weight of precious metals that you can include in an IRA. The rules for withdrawing from a Gold IRA are similar to other individual retirement accounts. Because the gold in a gold IRA must be stored in an IRS-approved depot, you can’t store it in a safe, a home safe, or under your mattress. Many investors choose gold to diversify their portfolio, either by investing in a gold IRA or buying the metal outright
.
