Gold IRAs function much like traditional retirement accounts, but your investment is backed with gold and other precious metals, including silver, platinum and palladium. Click below to get started.
American Hartford Gold is not on our main list because it has a larger spread between how much it pays to buy metal and how much it charges customers for that same metal than some other companies we examined.
Red Rock Secured is not on our main list because its website doesn’t have enough information about costs and fees to make a comprehensive evaluation.
Goldco is not on our main list because its time estimate to complete a rollover is up to two weeks, a longer period than some other companies take. There is a dearth of information about costs and fees on its website.
Lexi Capital is not on our main list because its site says the company does not keep “regular” phone hours but requires exchanges or returns to be approved by phone within three days.
Patriot Gold Group is not on our main list because it employs scare tactics to sell precious metals. It has very few customer reviews on TrustPilot or the BBB.
A gold IRA is a niche investment product. This specialized IRA can help diversify a portfolio because precious metals, including gold, are often considered an investment to beat inflation. But make sure to do your due diligence when researching whether a precious metals IRA account makes sense for part of your retirement funds.
Benefits Of Gold IraMany of these companies allow investors to buy precious metals that include silver, platinum and palladium in their IRAs in addition to gold. A gold IRA is distinctive because the account holder owns the actual precious metals, as opposed to stocks or shares of funds in mining companies.
Like a traditional IRA where you might hold stocks, bonds or mutual funds, a gold IRA is a tax-preferred investment vehicle — and the only option for holding precious metals in an IRYou might also come across the term “precious metals IRA” used instead of gold IRAlthough the former is technically accurate, the phrase “gold IRA” is the one that tends to stick in the public imagination.
Gold IRAs are classified by the Internal Revenue Service as self-directed IRAs. According to IRS regulations, self-directed IRAs can hold alternative investments such as precious metals. (In their tax treatment, a gold IRA is different from a Roth IRA, which is an after-tax savings vehicle. See Money's picks for best Roth IRA accounts.)
The process of setting up a gold IRA involves several parties. First, you open up the account and buy precious metals from a company like the ones highlighted here. If you elect to fund the account with assets currently in another IRA, the gold IRA company will help you manage the rollover (more on that process below).
The gold IRA company also coordinates the involvement of the financial firm tasked with being the account custodian, as well as the depository institution where the precious metals you purchase are held. (You are not allowed, per IRS rules, to keep IRA gold at home.)
Gold IRA companies differ in that some let you choose between multiple custodial firms and depositories, while others require you to use a custodian and depository of their choosing.
Are Gold Iras A Good IdeaA number of different kinds of retirement accounts can be used to fund a gold IRA via a rollover. You can roll over money held in a 401(k), 403(b), 457, pension or Thrift Savings Plan account without triggering a tax liability or penalties.
A gold IRA is a product best suited for sophisticated investors. If you have questions, consult with a financial advisor who is a fiduciary to decide whether gold makes sense in the context of your existing retirement investment portfolio. Gold IRA companies are not investment companies that have a fiduciary duty to act in your best interest. Their sales representatives should not be relied on for financial advice.
If you rollover a 401(k) to a gold IRA — as in, sell the entire balance of a conventional account containing stocks, bonds and/or mutual funds in order to invest in gold — you’re making a very big change to your investment profile. Doing so should be extensively researched beforehand. If you're unsure, take some time to learn the difference between an IRA vs. 401(k).
A conventional retirement account gives you the opportunity to be exposed to a variety of assets. This confers some important benefits, allowing you to:
Some gold IRA companies refer to their offerings as "diverse" because you can hold more than one kind of precious metal in it. From an investing perspective, this is not diverse, because precious metals — even different ones — are part of the same asset class. Gold also does not generate income, unlike dividend-earning assets.
Be sure to factor in the costs of cashing out as well: When you reach the age of 72 and must begin taking RMDs from your retirement accounts, you need to have your gold coins and gold bullion sent to you. That entails paying for shipping and insurance, or liquidating some of your gold.
Can You Hold Gold In An IraMost gold IRA companies will buy back gold they sold you initially, but buybacks are generally at the wholesale price, which often is around 30% lower than the prevailing retail price.
Before opening a gold IRA, consider the context of your broader wealth-management strategy, and set realistic expectations about how much you anticipate your investments growing, and how long you should plan to hold those assets.
If you’ve decided a gold IRA is right for you, you can contact your retirement plan administrator to initiate the rollover or have the gold IRA company perform a direct rollover between the two companies. This kind of institution-to-institution transfer is recommended because you never take control of the funds yourself, which spares you the risk of a potential tax penalty.
If you do choose to handle that distribution yourself, the IRS has strict rules you have to follow: You have a 60-day window from the date you receive the funds to roll that money over into another qualified retirement account, or the IRS will treat that distribution as a withdrawal and charge you taxes plus an early withdrawal penalty if you are younger than 59 ½ years old.
You can roll over just part of the balance of another retirement account to fund a gold IRA — although keep in mind that some gold IRA companies have minimum order sizes of $50,000, which might limit your ability to retain enough funds in your old account to maintain a portfolio allocation that will sustain you in retirement.
The precious metals in a gold IRA are generally coins and bars, some of which carry higher mark-ups than others. You can choose a mix of gold and silver, and some gold IRA companies also have platinum and palladium available that you can buy and hold in your IRWhen you must begin taking required minimum distributions, you can choose to liquidate the gold or have it shipped to you. In most cases, you will pay for shipping, so make sure to factor in that expense.
Gold Backed Ira CustodiansMost gold IRA companies will buy back gold or other precious metals they sold you, but buybacks are generally conducted at the wholesale price, which is about a third cheaper than the retail price.
Unlike a gold ETF, an exchange-traded fund that tracks the performance of gold, a gold IRA lets you hold the physical precious metals in an IRS-approved depository institution. If you want more flexibility with your precious metals, you might want to learn how to buy gold outside an IRIf you don't want the complications of investing in physical gold, you can research how to buy a gold ETF.
Gold IRA expenses are generally higher than the expenses associated with conventional retirement accounts like 401(k)s. If you have a gold IRA, you will incur costs to manage and maintain the account, as well as to store and insure your gold. Precious metals prices can also be volatile over time.
There are a number of types and forms of precious metals the IRS has approved as IRA-eligible. Certain coins and bars manufactured by the U.S. Mint, the corresponding agency of certain other countries, or designated private minting companies, can be held in a gold IRA.
The IRS has extremely detailed regulations that dictate which coins and bars can be held in a gold IRThe aim of these precise requirements on size, weight, design and metal purity is to ensure that retirement savers are keeping investment-grade assets, rather than collectibles, in their accounts.
We evaluated gold IRA companies’ websites, along with consumer advocacy organizations the Better Business Bureau and Business Consumer Alliance, as well as consumer-review sites such as TrustPilot. We considered each of the gold IRA companies’ reputation, transparency and the quality of online education and resources they provide.
In addition, we compared the companies' respective fee structures and minimum balances, when available, as well as how easy it was to find this information from their websites. We also analyzed the user-friendliness and responsiveness of their customer service.
We regularly update our list of best gold IRA companies to ensure that our highlighted picks continue to meet these requirements.
In addition, we compared the companies' respective fee structures and minimum balances, when available, as well as how easy it was to find this information from their websites. We also analyzed the user-friendliness and responsiveness of their customer service.
gold IRA is a specific type of individual retirement account called a self-directed IRIt is similar to a traditional IRA that might hold stocks, bonds or mutual funds. A self-directed IRA confers the same tax benefits as a traditional IRA but allows you to hold precious metals and other alternative assets in compliance with IRS regulations.
Learn everything you need to know about what is a gold IRA in this guide, including how to open one, how to fund it and why you might want to invest some of your nest egg in precious metals using this method.
Gold Silver Backed IraSurprisingly, a gold IRA doesn’t have to just hold gold — in fact, you don’t need to hold any gold at all in one. Given that you can also hold silver coins or bullion, platinum and palladium in a gold IRA, a more correct term is technically “precious metals IRA.”
But the phrase “gold IRA” is more commonly used as a kind of shorthand to refer to this kind of self-directed IRAs with a traditional IRA, your gold investments are purchased with pre-tax dollars. The alternative to the tax deferral a traditional or self-directed IRA affords is a Roth IRA, which is funded with money on which you have already paid taxes. For more detail, check out Money's best Roth IRA accounts guide.
The IRS rules that govern gold IRAs are extremely detailed. Your IRA gold coins and bars need to conform to regulations on size, weight, design and metal purity.
By putting strict parameters around what defines IRA gold, the IRS can ensure that people are holding investment-grade assets in their self-directed gold IRA, as opposed to collectibles, which are not eligible for any kind of preferred tax treatment.
How Does A Gold Backed Ira WorkA traditional gold IRA is the most common type of gold IRA (and the kind discussed throughout this guide unless otherwise specified). It is funded with pre-tax dollars, and you pay income tax on withdrawals in retirement.
A Roth gold IRA is funded with after-tax dollars. The money grows tax-free and you do not pay taxes when you take distributions in retirement.
A SEP gold IRA is a type of IRA intended for people who are self-employed or small business owners. It is also funded with pre-tax dollars, but the contribution limits are different and business owners can contribute on behalf of their employees.
To establish a gold IRA, you have to work with a gold IRA company to set up an account and purchase the precious metals of your choice to fund it. Many people who open gold IRAs use funds from another IRA to do so — but it’s not a good idea to roll over your entire nest egg into a gold IRA.
A gold IRA company will guide you through opening your self-directed IRA account. Some, but not all, will let you open the account online.
The gold IRA company also sells you the gold bars and coins (or other precious metals) you choose to put in your gold IRA.
They also will coordinate the selection of an IRS-approved custodian, which is a requirement for all self-directed IRAs, in order to prevent illegal self-dealing. The custodian is a financial services provider that executes investment activities on your behalf. They also carry out the necessary administrative functions that ensure your gold IRA is in compliance with all IRS regulations.
In addition to the account custodian, the gold IRA company will coordinate the functions performed by the depository, the facility where the precious metals in your IRA are physically held.
You could also deposit cash each year, following the annual IRA contribution limits. With the money in your account, you can then buy gold for your gold IRA.
The IRS has strict rules regarding the type of physical gold you can own in a gold IRYou can only purchase gold bars that are at least 99.5% in purity. You can also buy a number of gold coins, including the American Gold Eagle, the American Buffalo, the Canadian Maple Leaf and the Australian Gold Nugget/Kangaroo coins, for your gold IRA.
Certain Collectable Coins and Collectibles Are Not Allowed in a Gold IRA
The IRS does not allow popular gold coins like the South African Krugerrand or the United Kingdom Sovereign coins to be held in a gold IRIn addition, you cannot invest in gold collectibles with an IRMake sure to review the permitted list gold objects with your custodian before moving gold into your IRA.
If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the value of the item and, if you are younger than 59 ½, an additional 10% early withdrawal penalty.
A gold IRA charges a range of additional custodian fees that you wouldn’t owe on a normal IRA:
Account setup fees. The custodian may charge an upfront fee to launch your account, generally ranging from $50 to a few hundred dollars. However, some custodians do not charge a setup fee, especially if you make a larger deposit, like $30,000 or more.
How Do You Put Gold In An IraCustodian annual maintenance fee. The custodian generally charges an annual maintenance fee to cover the administrative expenses of overseeing your account and handling the paperwork. This could be a flat fee of $75 to $300 per year. Some companies also charge more for larger accounts, like $175 if you have less than $100,000 and $225 for over $100,000.
Seller fees. When you buy physical gold for your IRA, the seller could charge a markup, meaning you’d be paying more than the spot market price of the gold. This fee depends on market conditions and the type of physical gold you’re aiming to buy. Sellers may also charge commissions and fees for handling the transaction: $40 per transaction is standard.
Storage fees. Gold owned in a gold IRA must be stored in a secure location. The more gold you own, the higher the storage fee. This may be a flat rate or a percentage of the value of your account.
Insurance fees. Custodians may lump gold insurance charges together with the storage fee, charging one flat rate, or break it out separately. Depending on how much gold you hold, you should expect storage and insurance to cost between $100 to $300 a year.
Wire transfer fees. If you send or receive money by wire transfer for your transactions, the custodian could charge a fee to cover the cost of about $25 per wire.
Cash-out fees. If you close your account, the custodian may also charge a final cash-out fee of around $250.
How To Put Gold Into Your IraWhen you’re a new customer, the custodian may be willing to waive some of these fees for the first two to three years, especially if you have a larger account balance. But even with larger accounts, you could face extra charges that you would incur if you held your money in a standard IRA.
Before opening a gold IRA, keep in mind that it’s not the only way to invest in gold with your retirement funds. There are simpler ways to save for retirement with assets exposed to gold beyond buying physical bullion itself.
You can invest in gold stocks, like shares of gold mining companies or gold royalty companies, which help finance mines. When the price of gold goes up, these firms are more profitable so their share price should go up as well.
You may also choose to buy a gold ETF or gold mutual funds. These funds buy up a basket of gold-related investments, like stocks in different gold mining companies. There are also funds that directly track the spot price of gold using futures trading strategies.
These investments are available in a normal brokerage IRA, meaning you wouldn’t have to go through the work and the extra costs of setting up a self-directed gold IRIf you must own the physical metal itself, then you will need a self-directed gold IRA.
A gold IRA or precious metals IRA is an Individual Retirement Account in which physical gold or other approved precious metals are held in custody for the benefit of the IRA account owner. It functions the same as a regular IRA, only instead of holding paper assets, it holds physical bullion coins or bars. Precious metals IRAs are usually self-directed IRAs, a type of IRA where the custodian allows more diverse investments to be held in the account.
Can I Put Gold In My IraThe four precious metals allowed to be held in an individual retirement account are gold, silver, platinum and palladium, provided they are in the form of IRS-approved coin or bar products. Since gold is the most commonly purchased of the four, the overarching term "gold IRA" is used most often as industry slang to mean a retirement account containing any combination of precious metals. Other terms such as, "precious metals IRA", "silver IRA", "platinum IRA", or "palladium IRA" are also frequently used.
Investors often use precious metals as a long-term hedge against inflation, to diversify their portfolio.[1] Internal Revenue Code requirements state that the approved precious metals must be stored in a specific manner. Some trustees have their own facilities to hold the physical precious metals, while others use a third party metals depository as a storage facility.
The Taxpayer Relief Act of 1997 broadened the permissible types of investments allowed in IRAs, stating: "Your IRA can invest in one, one-half, one-quarter, or one-tenth ounce U.S. gold coins, or one-ounce silver coins minted by the Treasury Department. Beginning in 1998, an IRA can invest in certain platinum coins and certain gold, silver, palladium, and platinum bullion."[2]
The IRS approves select precious metals and forms of bullion for IRAs.[3] Although investment in "Collectibles" using IRAs and Qualified Plans is not allowed,[4] there is a carve-out allowing for investment in certain coins, as well as bullion meeting certain fineness requirements.[5] Gold bars are more difficult to sell due to their higher price and easier ability to be counterfeited, as well as being more difficult to deliver due to their heaviness and the amount of security required during transport. There are currently a variety of precious metals that meet the minimum purity requirements that are acceptable for inclusion into a gold IRA account. Some gold IRA companies argue inclusion of certain coins in a precious metals IRA; however, several of those companies have been investigated by the government for misleading customers and aggressively selling numismatic coins over gold bullion. Numismatic coins pay the gold company higher commissions, but bullion bars more directly reflect the spot price of the precious metal.
The laws for taking distributions from a gold IRA are the same as those for a regular IRThe account holder may liquidate their IRA metals for cash or take physical possession of them. Both actions are akin to taking an IRA distribution and will be taxed accordingly.
To comply with IRS requirements, all IRAs, including precious metals IRAs, must leave their assets in possession of a trustee or custodian, not the owner's individual possession. IRS Publication 590 specifies that for all IRAs, "The trustee or custodian must be a bank, a federally insured credit union, a savings and loan association, or an entity approved by the IRS to act as trustee or custodian."[6] All nonbank IRA trustees must demonstrate to the IRS that they will meet Treasury standards of accounting, auditing, reporting, and asset security.
How Can I Put Gold In My IraSeveral companies promote gold IRA arrangements based on the checkbook control strategy, where the IRA does not own the metals directly, but owns a limited liability company (LLC) through which the taxpayer purchases and stores the metals. Neither the IRS nor federal courts have taken a position on the legality of these arrangements, and the IRS has warned that they carry a risk of disqualifying the IRA.[7]
(Ad) Investing in gold is one of the best ways to protect your savings and diversify your retirement portfolio. Gold has steady growth and little volatility compared to the stock market, making it the perfect hedge against inflation.
While most IRAs consist of traditional assets such as stocks and bonds, the tax code permits you to use self-directed IRA accounts that allow you to hold precious metals such as gold and silver.
However, setting up a gold IRA can be an overwhelming process because it involves finding a gold IRA custodian, locating an approved depository to store your gold, and navigating the IRS tax rules on gold IRA accounts. That's why many investors are turning to reputable gold IRA companies to help facilitate the process for them.
The best gold IRA companies have experts that specialize in self-directed retirement accounts and can assist you with setting up your account, acquiring precious metals, and remaining compliant with the tax code.
Whether you're looking to purchase gold to diversify your investment portfolio or to convert an existing retirement into a precious metals IRA, here are the top gold IRA companies.
Goldco is a privately held firm that specializes in wealth and asset protection. This company can help you transfer assets from a tax-advantaged retirement account, such as an IRA, 401(k), or 403(b), to a precious metals IRGoldco also offers direct gold and silver sales to customers.
Goldco offers both gold and silver IRAs. If you choose to invest in a gold IRA, you can purchase a range of gold IRA-approved coins to fund your account. Goldco works with mints to source high-quality coins eligible for gold IRAs, including:
Goldco is a privately held firm that specializes in wealth and asset protection. This company can help you transfer assets from a tax-advantaged retirement account, such as an IRA, 401(k), or 403(b), to a precious metals IRGoldco also offers direct gold and silver sales to customers.
Goldco can make the process of opening a gold IRA quick and easy. First, you can initiate your IRA by signing an agreement on the Goldco website. A representative from the company can help you understand the service terms and walk you through each step.
Next, you'll need to fund your IRA by rolling over assets from an existing 401(k) or another eligible account. Typically, IRA rollovers can take place without any tax penalties. You can also set up a brand new precious metals IRA, if you don’t have an existing retirement account to transfer funds from.
How To Buy Gold In My IraOnce you've funded your precious metals IRA, you can choose the gold or silver you would like to purchase with your funds.
If you'd prefer to invest in your retirement savings directly, you can buy physical gold and coins on the Goldco website and ship them to your preferred depository or your home. Some customers also qualify for free storage through Goldco.
Goldco offers a wide range of precious metal products for direct sale. You can purchase these coins by first signing an agreement on the Goldco website, and then funding your account with a bank wire or mail-in check.
If you're on the fence about working with Goldco, you can request a free kit to learn more about the company. This kit includes a printed guide, an audio guide, and a video guide that answers questions about:
How To Buy Gold In Ira AccountBirch Gold Group is a physical precious metals dealer that has been in business since 2003. Since its beginnings, the company has worked with over 13,000 customers and has built up an impressive reputation, garnering an A+ Better Business Bureau rating.
Birch Gold Group sells gold, silver, platinum, and palladium in coins, bars, and rounds. You can purchase precious metals directly through the company or open a precious metals IRA.
If you're looking to open a gold or silver IRA, you can start by opening your account and choosing your funding source. You can fund your account by transferring funds from an open IRA or rolling over a 401(k) into a new, self-directed IRA precious metals specialist can help you review your accounts, transfer funds, and answer any questions you may have.
Once you fund your precious metal investment account, you can choose the precious metals you would like to purchase and decide how much of each to buy. After you purchase your precious metals, your specialist will review your order and send you a final confirmation. Additionally, your specialist can walk you through your storage options.
Birch Gold Group works with reputable depositories that you can use to store your gold, silver, platinum, and palladium coins within your IRThe company most commonly works with Brink's Global Service and Delaware Depository, which offers up to $1 billion in insurance.
You can talk to your precious metals specialist at any time to review your precious metals' performance or make any changes to your account. These specialists are incredibly helpful in walking you through the entire process and helping you maintain a profitable investment portfolio.
If you'd rather not invest in a gold IRA, you can also purchase gold, silver, platinum, and palladium directly through this company. You'll simply need to fund your account via wire or a personal check. Birch Gold Group will then ship your metals to your desired location in discreet packaging with fully insured delivery methods.
If you're interested in learning more about Birch Gold Group, you can request a free info kit through the company's website. This kit includes a booklet with information about diversifying your savings with precious metals.