How To Hold Physical Gold In An IRA Step By Step?

What could be more American than owning gold? You know, the yellow metal that is said to represent wealth and power in many cultures throughout history. And now, you don’t have to be a millionaire to buy gold. In fact, you can even hold physical gold in an IRA! Curious about how it works? Keep reading for all the details.

3 Steps To Hold Physical Gold In An IRA

Follow these three steps to put physical gold in your IRA:

Step 1: Set Up A Self-Directed IRA

The first step is to set up a self-directed IRA with a gold IRA company through a custodian that allows for physical gold investments.

Not all custodians allow physical gold in IRAs.

Some only allow cash or paper assets.

Before you choose a custodian, make sure that they allow for physical gold investments.

You will also want to research the fees associated with opening and maintaining an account with them.

Once you have found a custodian that meets your needs, you will need to open a retirement account with them and fund it.

Step 2: Purchase Approved Coins or Bars 

There are certain types of gold that are allowed in gold IRAs.

You will need to purchase these approved assets from an authorized dealer.

Related: What Is IRA Eligible Gold? Full Details And Specifications

Be sure to purchase insurance for your gold so that it is protected in the event of loss or theft.

You will then need to arrange to have your gold delivered to the depository designated by your custodian. 

Step 3: Store Your Gold 

Your gold will be stored in an IRS-approved depository where it will be insured and fully segregated from other customers’ assets.

Your custodian will provide you with quarterly statements detailing the value of your gold holdings and any changes in value over time.

You can take distributions from your account at any time, although you may owe taxes on the withdrawals depending on whether you have Roth or Traditional IRAs.

If you withdraw assets before reaching age 59 1/2, you may also be subject to a 10% early withdrawal penalty tax unless an exception applies.

Related: 7+ Important Gold IRA Tax Rules You Should Be AWARE Of

Can I Take Physical Possession Of Gold In My IRA?

In short, there’s a clear answer to the above question.

No, you can’t take physical possession of gold in your IRA.

Many individual retirement accounts allow you to choose the specific gold or other precious metals you want to invest in, meaning that while you cannot hold it in your own hands, you still have some control over what is purchased on your behalf.

Also, IRS rules state that the gold must be stored at a depository institution that has been approved by the IRS.

This means that your investments are safe and secure even if you can’t physically possess them.

But what about alternative options?

If having physical possession of your gold is important to you, there are 2 ways to invest outside of an IRA account.

1. Early Withdrawals

There could be a tax penalty associated, but it might still be worth it.

You can talk to your broker about the possibility of them shipping some or all the gold to you so that you can take care of storage and security concerns.

Just remember that if you do this before retirement, or before turning 59 ½ years old, there will most likely be a tax penalty.

2. Directly Buy Physical Gold

Several of the Gold IRA firms I’ve looked into provide excellent alternatives for purchasing them in a precious metals IRA and have methods to have them delivered straight to you.

Some of these businesses even have buy-back programs in which they’ll buy the gold back from you at competitive prices when you’re in need of cash.

Although these physical gold purchases are not tax-protected like a gold IRA, there are situations where you would want to buy gold for protection against something more serious than taxes.

Related: Gold IRA vs Physical Gold: Which is Better for You?

How Much Does It Cost To Store Gold In An IRA?

Gold IRA holding costs can vary depending on the type of account you have and the custodian you use. Generally, there are three types of fees that you may be charged: annual fees, storage fees, and transaction fees.

1. Annual Fees

Annual fees are typically charged by the custodian of your account and are used to cover the costs of maintaining your account and storing your gold. These fees can range from $50 to $200 per year and include maintenance too.

2. Storage Fees

Storage fees are typically charged by the depository that is holding your gold. These fees cover the costs of keeping your gold safe and secure. Storage fees can range from $75 to $250 per year.

3. Transaction Fees

Transaction fees are typically charged when you buy or sell gold within your individual retirement account. These fees cover the costs of processing the transaction and can range from $25 to $50 per transaction.

4. Insurance Fees

Typically included in storage or maintenance fees.

Should Gold Be In An IRA?

While it may seem unconventional, putting some of your retirement funds into gold can offer a number of benefits.

It can act as a hedge against inflation and market instability, providing stable value for your savings.

Gold also has a long history as a reliable store of value, making it a potentially secure option for retirement planning.

Of course, there are drawbacks to investing in gold as well.

It tends to have lower returns than other investments, and storing physical gold can come with added fees and security concerns.

Ultimately, the decision to add gold to your IRA should be made after careful research and consultation with financial professionals.

However, for some investors, including physical gold in their retirement plans could be worth considering.

You can also consider buying gold ETFs, gold mutual funds, or buying stocks of gold mining companies if that’s your specialty.

Can You Hold Other Precious Metals In An IRA?

While gold is a traditional investment choice for an IRA, it turns out that you have options beyond just this precious metal.

Silver, platinum, and palladium are also allowed to be held in an IRA, giving you a wider range of investment options.

However, it’s important to remember that not all IRA custodians offer these options, so be sure to ask about availability before choosing a provider.

Additionally, your IRA can only invest in specific government-approved bars and coins for these metals, so do your research before making any purchases.

Can I Hold Physical Gold In A Roth IRA?

When it comes to retirement savings, many individuals turn to a Roth IRA for its tax-advantaged benefits.

However, the question remains: can physical gold be held within a Roth IRA?

The answer is yes, but there are certain requirements and restrictions that must be followed.

First, the gold must meet IRS fineness standards and must be stored in an IRS-approved depository.

In addition, only certain types of gold can be held within a Roth IRA, such as gold coins, and bullion bars produced by recognized government mints.

It is also important to note that the costs associated with buying and storing the physical gold must come from money already within the IRA rather than outside contributions.

While owning physical gold can diversify a retirement portfolio, it is important to carefully consider all factors before making this decision.

Should You Really Hold Physical Gold In An IRA?

There are many benefits to investing in gold, but there are also a few potential downsides that you should be aware of before making your decision.

If you’re looking to invest in gold IRA, be sure to do your research, consult a financial advisor, and choose a reputable company.

We’ve provided a few links below to get you started.

Thanks for reading!