While you can take out exposure to gold in a normal retirement account by owning stocks or funds, you can’t hold the physical asset in an IRA or a 401 (k). To do this, you’ll need a Gold IRA, although there are additional rules to follow and fees to pay for this particular type of individual retirement account. Many people fund their new account with some or all of their funds in an existing retirement account. IRS rules allow funding a Gold IRA with funds from another IRA, 401 (k), 403 (b), 457 (b), or Thrift
To start the process, contact your current retirement plan administrator and let them know how much you’d like to transfer. Once you’ve set up your Gold IRA, you can transfer or transfer the funds from an existing IRA or other retirement plans. You can leave the money in cash until you’re ready to make a purchase. You can always invest as much or as little as you want to keep the balance in cash or even invest it in other assets.
Regardless of whether you’re setting up a brand-new IRA or transferring funds from an existing IRA or retirement plan, you can choose to pay all start-up fees from the IRA’s assets. Many Gold IRA companies have preferred custodian banks that they either recommend or require customers to use them, or you can search for a custodian on the RITA website. A gold IRA can be a traditional IRA, a ROTH IRA, a SEP IRA, a SIMPLE IRA, or an inherited IRA that is self-managed and owns IRA-eligible physical gold coins or gold bars. Moy, chief strategist at Fortress Gold, who, as former director of the United States Mint, oversaw the largest production of gold and silver coins
in the world.
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. A platinum IRA is an IRA that invests some of its entire assets in IRA-approved platinum bars. A gold IRA is an alternative investment option for pension savers who want to own gold to hedge against inflation or diversify their assets beyond the stock market. Gold IRAs can be a good option if you want to take advantage of the stability of gold and other precious metals while diversifying your investment portfolio and saving for retirement
It’s important that you understand all costs and expenses before you buy physical gold to keep in an IRA. For a gold IRA, you need a broker to buy the gold and a custodian to create and manage the account. They sell gold coins, gold bars, and the like, but they don’t offer IRA investment advice (although their websites or other marketing materials might suggest so). Gold is a highly illiquid asset, meaning it can be difficult to find a buyer for big sales without
discounting the price.
The rules for withdrawing from a Gold IRA are similar to other individual retirement accounts. You then have to buy the approved gold or other precious metal and have it transferred to the depositary in such a way that the custodian bank can account for it, explains Moy. If you’re considering transferring money to a Gold IRA, contact your existing IRA custodian for information about the fees or charges you may incur. A gold IRA can give you the tax benefits of a traditional retirement account, but you must follow IRS regulations or you risk fines and penalties