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BUYING PRECIOUS METALS IN AN IRA

For U.S. customers, buying physical precious metals within an IRA account may be important. An IRA account provides investors with a way to acquire certain precious metals on a tax-deferred or after tax basis. If you are interested in purchasing precious metals for your IRA account, there are a number of rules and strict guidelines that must be adhered to. For any questions on IRA eligibility or tax related matters, please consult your tax professional. Here we will outline some of the basic guidelines, but nothing contained in this guide should be considered tax advice.

WHAT EXACTLY IS AN IRA?

An IRA is a type of U.S. retirement account that may be set up on a tax-deferred or after tax basis. To purchase and hold precious metals within an IRA, you will need to set up a self directed IRA. Unlike a standard IRA account, a self directed IRA allows the holder to make their own investment decisions. In addition to stocks and funds, one can invest in several alternative asset classes such as precious metals, real estate or futures.  One should consult their own tax professional to discuss which IRA account type may best their needs. IRA accounts may provide investors with a number of potential advantages.

WHAT PRECIOUS METALS CAN I PURCHASE IN AN IRA?

You cannot just go out and buy whatever you want in an IRA account. There are very strict guidelines as to what is permissible and what is not. We recommend you consult your tax professional before making any purchase. That being said, here are some of the products that may be purchased within an IRA.  While we believe this to be accurate, it is subject to change.

Gold:

-American eagle gold coins

-Australian kangaroo/ nugget coins

-Credit Suisse gold bars

-Canadian maple leaf gold coins

-Austrian Philharmonics

-PAMP Suisse gold bars

-American eagle proof coins

-American buffalo gold coins

-Various gold rounds and bars that are .995 percent pure

Silver:

–American silver eagle coins

-Australian silver kookaburras

 -Canadian silver maple leafs

 -1 ounce Sunshine Mint silver bars

-1 ounce Johnson Matthey silver bars

-Austrian silver Philharmonics

-Various silver rounds and bars that are .999 percent pure

Platinum:

–American platinum eagle coins

-Australian Koalas

-Canadian platinum maple leafs

-Isle of Man platinum nobles

-Various bars and rounds of minimum .9995 percent fineness

Palladium:

–Canadian palladium maple leaf coins

-Various bars and rounds of minimum .9995 percent fineness

Precious metals for purchase in an IRA account may also have additional requirements that need to be met including manufacturer, exact weight specifications and coins may not be certified, or “slabbed” coins.

 

HOW DO I BUY PRECIOUS METALS IN MY IRA?

It has never been easier than it is today to buy precious metals within an IRA account. One can buy from the dealer of their choice as well as utilize the services of the IRA custodian of their choosing.

While the process may seem complicated, it is really fairly simple.

• Open a self-directed IRA account with the custodian of your choice
• Add funds to your self-directed IRA account
• Choose a depository for storage of your precious metals
• Choose precious metals to purchase
• Shop and compare various precious metals dealers
• Complete  buy direction and depository election forms
• Make purchase with dealer who will then invoice your IRA custodian
• The IRA custodian pays the dealer directly out of IRA funds
• Your precious metals are shipped directly from the dealer to your IRA account name at your chosen depository

WHAT IS A SELF-DIRECTED IRA CUSTODIAN?

An IRA custodian acts as a fiduciary. It is there job to make sure all necessary paperwork is completed properly. In addition, they are responsible for record keeping and the production of regular account statements. These companies must be a bank, federally insured credit union, savings and loan association or other entity that has been approved by the IRS.

I BOUGHT MY METALS-NOW WHAT?

Once you have completed a purchase agreement with a precious metals dealer, the dealer will directly invoice your IRA custodian. The custodian pays the dealer out of your IRA funds. Once payment is complete, the custodian and the dealer will arrange shipment of your precious metals to the chosen depository.

WHY HAVE A PRECIOUS METALS IRA?

A self directed precious metals IRA account may have some important advantages for the account holder. Some of these potential advantages may include:

-A vehicle for portfolio diversification. Precious metals such as gold and silver may exhibit little correlation to other asset classes such as stocks or bonds.

-Having your precious metals holdings stored in a secure depository.

-More investment choices

-The potential for tax-deferred growth

It has never been easier than it is today to build a precious metals portfolio. Using a self directed IRA account, one can reap the potential benefits of such an account as well as the potential benefits that come with precious metals ownership. For any tax related questions or concerns, consult your tax professional. No investment or tax related advice is being given or implied.