Gold IRA How-To - Who are the Parties I Need to Work with to Invest My IRA In Gold?

Some people may not know that their Individual Retirement Accounts can be legally invested in almost any type of asset except collectibles and life insurance.  That means you can invest your retirement funds in precious metals like gold, silver, platinum and palladium—and it's a relatively easy process.

There are four players involved when using your IRA to purchase precious metals:  The IRS, a Self-Directed IRA Provider like New Direction Trust Company, a Precious Metals Dealer and a Precious Metals Depository.

The IRS

In return for the special tax status that retirement accounts receive, the IRS sets some parameters that need to be followed. First, your IRA can purchase metals as a commodity but cannot purchase collectible coins.

Second, there is requirement for the fineness or purity of the metals (note that these requirements do not apply to American Eagle coins):

  • 99.5% for Gold
  • 99.9% for Silver
  • 99.95% for Platinum and Palladium

Third, your IRA cannot buy or sell your metals from a disqualified person. Disqualified persons include you, your spouse, your ascendants, descendants and their spouses.

Self-Directed IRA Provider

A self-directed IRA provider that allows assets like precious metals will help make you aware of IRS requirements as well as perform record keeping for your account. If your retirement funds are not currently with an IRA provider that allows precious metal investing, you will likely be able to move your funds without a tax penalty to a provider that does allow precious metals. It is a good idea to set up your self-directed IRA and fund it before negotiating your purchase with a metals dealer. The prices of metals are volatile and brokers are not likely to lock in a price for a long period of time.

Precious Metals Dealer/Broker

Self-direction of your retirement account means that you get to select a precious metals dealer with whom you are comfortable. Due diligence is your responsibility, but once you’re satisfied with your selection, you agree on the deal and direct the IRA provider to fund your purchase.

Precious Metals Depository

The IRS restricts you from keeping your IRA-owned metals in your physical possession. They must be held in a depository for safe-keeping but the selection of this storage site is up to you.  Factors that you might consider include fees, segregated vs. non-segregated storage, facility location and insurance levels.

Now that we’ve identified the four players involved and established some expectations about their roles, it is time to start putting together your new Precious Metals IRA. For more detailed information, please give us a call at 877-742-1270 or send us an e-mail at info@ndtco.com.

Add a comment