Where to keep your gold IRA
If you're considering investing in gold this year, you may be thinking about whether a gold IRA is right for you.
These retirement accounts allow you to invest physical gold bars and coins in a self-directed IRA. Your gold IRA even comes with retirement advantages, depending on the type you choose (traditional, Roth, SEP, etc.). But there are a number of requirements you'll need to meet if you want to invest in gold with a gold IRA — including the type of gold you buy and where you choose to store it for the long-term.
Start learning more about gold investing today with a free information kit.
Where to keep your gold IRA
To invest in gold with an IRA, you'll need to work with a custodian. This custodian will keep and maintain your account — including coordinating the purchase and storage of your physical gold investment.
The IRS requires gold within self-directed IRAs to be of a certain standard, meaning high-value bullion of a specific weight and purity, as opposed to gold collectibles, which are prohibited. Even more importantly, you may not store gold from your IRA at home.
According to the IRS website, "gold and other bullion are 'collectibles' under the IRA statutes, and the law discourages the holding of collectibles in IRAs. There is an exception for certain highly refined bullion provided it is in the physical possession of a bank or an IRS-approved nonbank trustee."
You can find an eligible custodian using the IRS directory.
Another option is working with a gold investment company to set up and fund your gold IRA. These companies can help make sure you're working with an approved custodian to buy IRA-eligible gold, and will have storage options for your investment. Just be prepared to pay account setup and maintenance fees each year. Find out more about investing in a gold IRA with a free investors kit today.
More details to know about gold IRAs
A gold IRA can be a good way to add precious metals to your investment plan. But you should fully understand the details — and how to incorporate gold into your retirement savings — before you invest.
For one, make sure you choose the right gold allocation. Gold can be valuable as a portfolio diversifier to help you withstand periods of inflation and market downturn, but it shouldn't be your only investment. Instead, gold is best in small allocations of around 5% to 10% of your overall portfolio, experts say.
You'll also want to know the specifics of how your IRA works. This includes choosing the right IRA type based on your individual finances, such as whether you want to make pre- or after-tax contributions. But it's also important to know the restrictions on annual contributions ($6,500 for 2023, or $7,500 for catch-up contributions) and when you can withdraw or must begin taking required minimum distributions.
Because this is a retirement-focused account, be prepared to invest for the long term. Gold can work best as a long-term investment in general, but using an IRA for your gold investment means you may not be able to withdraw your contributions without facing a penalty before retirement age.
Researching the best ways to incorporate a gold IRA into your broader retirement plan before buying in can help you maximize the value you get from the account. If you're unsure, consider speaking with a trusted financial expert — like a tax professional or investment advisor — who can help guide you through the process using your individual details.
The bottom line
If you're thinking about investing in a gold IRA today, do your research to understand the IRS requirements you'll need to meet to make your gold investment eligible. This includes choosing IRA-eligible gold bullion and working with an approved custodian for the maintenance and storage of your physical gold. For some investors who are unsure about the process of opening and investing in a gold IRA, a gold investment company may help. Learn more about your options today with a free investment guide.
