A gold IRA is a self-directed retirement account that allows you to invest in physical gold and other precious metals. The value of your investment can rise and fall with the price of gold, but it’s not subject to the same tax rules as other IRAs.
There Are Two Types Of Gold IRAs
Gold-only IRAs allow only physical gold or coins to be held in the account. You must purchase them from a bullion dealer or financial institution that’s registered with the U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC). The IRS doesn’t recognize any other form of gold as an IRA asset.
Gold/precious metals IRAs allow you to hold more than just physical gold in your account — they also allow you to include investments like mutual funds, ETFs and stocks that contain precious metals among their holdings. Gold/precious metals IRAs can be established at most major brokerage firms and banks. They’re typically offered as self-directed accounts, which means you’ll have to manage all of the investments yourself. This is different from a traditional IRA or 401(k), where your financial adviser handles all of the paperwork and investment decisions for you.
Gold IRAs are different from regular IRAs in several ways: They have higher annual contribution limits (more on that below) and the funds can only be invested in gold or precious metals. You can’t make any other investments in a gold IRA — no stocks, bonds or mutual funds. But there are still plenty of options when it comes to deciding which kind of gold or precious metal you want to hold in your account.
Choosing The Right Gold IRA Company
There are several companies offering gold IRAs, but not all of them are the same. Some provide more flexibility in terms of where you can buy and sell your metals (and some even offer a network of dealers to choose from) while others offer only one or two options for buying or selling. You should always check gold IRA company reviews before making any kind of investment. Look for companies that offer a variety of metals and dealers, or at least have an established network of dealers that they use. You should also check to see if any additional fees will be charged for purchasing or selling gold through the company — some do charge a small amount for this service.
