Saving for retirement through an individual retirement account (IRA) has many benefits, which are widely known. What is not as commonly known is that you can invest in physical assets like gold or silver bullion inside an IRA account.
Investing in physical gold within an IRA account has many benefits including diversification. As an investment, gold is considered a portfolio diversifier and offers you the opportunity to preserve and grow your wealth, especially when other asset classes aren’t performing well.
If I want to invest in gold or silver in my IRA, can I store the bullion in my home?
No. You will need to open a self-directed IRA account with an IRS-approved custodian bank to add gold to an IRA. Blanchard has a longstanding relationship with GoldStar Trust Company, but we’ll gladly help you get started with any IRS-approved custodial institution you choose.
With a self-directed IRA, you can invest in a wide variety of precious metals including gold, silver, platinum or palladium. However, the IRS has specific criteria your precious metals must meet.
What is IRA-eligible gold and silver, platinum and palladium according to the IRS?
These are the minimum “fineness requirements” for precious metals that are set by the IRS in order to be IRA-eligible gold, silver, platinum and palladium. These include:
- Gold: .995 fine (Gold American Eagle is the only exception)
- Silver: .999 fine
- Platinum: .9995 fine
- Palladium: .9995 fine
Wondering how to get started?
Follow these three steps to open a precious metal IRA
Step 1: Open Your Account. You can easily roll over an existing IRA or 401(k) or open a new precious metals IRA.
Step 2: Transfer Funds. You can choose an investment amount you would like to rollover and transfer funds from your existing IRA, 401(k), or TSP account. The transfer or rollover process is tax and penalty free.
Step 3: Choose Your Metals and Fund Your Account. Examples of IRA approved gold and silver include the following:
- 1 oz. American Gold Buffalo
- 1 oz. Australian Gold Kangaroo Coin
- 1 oz. Austrian Silver Philharmonic Coin
- 10 oz. Silver Bullion Bars
- 100 oz. Silver Bars
- 1 oz. Canadian Gold Maple Leaf Coin
- 1 oz. Austrian Gold Philharmonic Coin
- 1 oz. Gold Bar
- 1 oz. American Platinum Eagle
How much can you contribute to a self-directed IRA?
The IRS contribution limits for a self-directed IRA are the same as a traditional IRA and you will enjoy the same tax advantages. For 2024, the limit on annual contributions to an IRA increased to $7,000.
Build a secure future with a self-directed IRA
Before you add your hard earned savings to a typical IRA that invests in mutual funds, exchange traded funds, bond funds or cash, consider this. Those are all paper assets. Confidence in the stock market is on the decline. History demonstrates that gold is uncorrelated with the S&P 500. That simply means when the S&P 500 plunges, gold typically moves sharply higher. That makes gold an excellent portfolio risk diversification tool and an ideal investment for a self-directed IRA. Adding gold to your IRA portfolio is a form of wealth protection in a tax-advantaged retirement account.
Get started today
It is a relatively easy process to transfer some or all of your current IRA to a retirement plan custodian that specializes in tangible asset investments. Using an IRA to buy physical gold retains the tax advantages and offers you the potential for capital appreciation and inflation and purchasing power protection over time. If you are looking for an opportunity to add an additional layer of diversification into your investment strategy, a self-directed IRA could be right for you.
Questions? We are here to help. Call Blanchard at 1-800-880-4653. Or learn more about adding precious metals to your IRA here.
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