FAQ - Gold IRA
What is a Gold IRA?
A gold IRA is a self-directed individual retirement account (IRA) that allows you to invest in physical gold. Other precious metals, such as silver, platinum, and palladium, are also allowed in self-directed IRAs. It offers the same tax benefits as a traditional IRA but gives you more control over your investment portfolio by allowing diversification into tangible assets.
Why should I invest in a Gold IRA?
Gold IRAs provide an opportunity to hedge against inflation, market volatility, and economic uncertainty. Precious metals, like gold, have historically maintained their value over time, making them a stable investment, particularly during periods of financial turmoil or when traditional assets, such as stocks, underperform.
How does a Gold IRA work?
A Gold IRA works much like a traditional IRA or Roth IRA; however, rather than assets in paper format, like stocks and bonds, your investment is in physical precious metals. You open a self-directed IRA, fund it through contributions or rollovers from other retirement accounts, and purchase approved precious metals from a reputable and trusted provider that are then transferred and stored in an IRA-approved depository.
Are there any tax benefits with a Gold IRA?
Yes, a Gold IRA offers the same tax benefits as a traditional IRA or Roth IRA but its value is backed by gold, not the intangible value of a stock price. Just like other IRAs, a Gold IRA offers tax-deferred contributions, which means you won’t pay taxes on the funds invested until you withdraw them in retirement. With a Roth Gold IRA, your contributions are made with after-tax dollars, meaning your withdrawals are tax-free.
How do I set up a Gold IRA?
There are three quick and easy steps to establishing a Gold IRA and we can assist you with this. Call a representative at 800.248.2223:
1. Open a self-directed IRA with a custodian who specializes in Gold IRAs (typically, we recommend Equity Trust Company and have worked with them for decades).
2. Fund the account through transfers, rollovers, or direct contributions.
3. Purchase IRS-approved precious metals through your custodian and ensure they are stored in an approved depository (we recommend International Depository Services [IDS], with offices in Dallas, Delaware and Canada).
What IRA Eligible Products Are Available?
1. The Taxpayer Relief Act of 1997 increased IRA-eligible products from gold and silver American Eagle coins to a large variety of gold, silver, platinum and palladium products that meet minimum fineness requirements. As a leading seller of IRA-eligible precious metal products, our website typically features the most popular IRA-eligible products available in coin, round or bar form from the U.S. Mint, the Royal Canadian Mint and the British Royal Mint. However, for clients looking to secure IRA-eligible items from other mints or for those looking to purchase larger quantities, please call us at 800-248-2223. Kevin O’Leary, media personality and investor, says, “Universal Coin & Bullion, with its expertise and top-tier selection; is my go-to for high-quality gold and silver products.”
2. To be eligible as an IRA allowable precious metals product the following minimum fineries and conditions must be present.
a. Gold must be .995 fine, silver must be .999 fine and platinum and palladium must be 99.95% fine or pure. Gold eagles, while only 22-karat, are eligible.
b. Bars, rounds and coins must be produced to meet required fineness specifications and contain the name of the sovereign mint or a mint mark from a refiner, assayer or manufacturer that is accredited by the New York Mercantile Exchange, the New York Stock Exchange, the Commodities Exchange, the London Bullion Market Association or another major exchange. Some examples of approved gold coins and bars that can be included in a precious metals IRA are American Gold Eagle Bullion Coin, American gold Buffalo Coins, Australian Kangaroo Gold Coin, Austrian Philharmonic Gold Coins, British Britannia Gold Coins, Canadian Maple Leaf Gold Coins, Chinese Panda Gold Coins, gold bars from Credit Suisse, the Perth Mint, the Asahi Mint which meet the proper fineness and quality guarantees mentioned above. Silver coins that are approved for IRA inclusion are the American Silver Eagle coins, the American The Beautiful (5-ounce) coins, the Australian Kookaburra Silver coins, the Austrian Philharmonic Silver coins, the British Britannia Coins (post-2012), the Mexican Libertad Silver coins and the Chinese Panda Silver coins. Silver bars and rounds meeting the required fineness specifications and other regulations are also eligible for IRA inclusion.
In the platinum and palladium categories, the American Eagle Platinum Bullion Coin, the Australian Koala Platinum Bullion Coin and the Canadian Maple Leaf Platinum Bullion Coins are precious metals IRA-approved. The Maple Leaf Palladium Bullion Coin is a popular sovereign mint coin approved for precious metal IRAs. Other platinum and palladium rounds and bars are approved for IRAs but they must meet the specifications for fineness and mint eligibility.
IMPORTANT NOTE: The South African Krugerrand, German Mark, the Mexican Peso and Onza, French Franc and many other gold coins are NOT approved for precious metals IRA-eligibility inclusion. Most rare or collectible coins are also not eligible for precious metals IRA accounts. Please call us to assist you in determining which IRA-eligible products are right for you.
Can I take physical possession of the gold in my IRA?
No, you cannot take physical possession of your gold while it is in your IRA. The gold must stored in an IRS-approved depository to maintain the tax-advantaged status of the IRA. If you withdraw the physical gold, it will be considered a distribution and may be subject to taxes and penalties, depending on your age.
Are there any fees associated with a Gold IRA?
Yes, but talk to your representative about how we can help cover the first years of any fees you might have for setting up a qualifying Gold IRA through Universal Coin & Bullion. These fees may include:
• Setup fees for opening your account
• Custodian fees for managing the Gold IRA
• Annual storage fees for holding your precious metals in an approved depository
• Transaction fees during the purchase or sale of precious metals
It is important to discuss these fees with your Universal Coin & Bullion account representative to find out how you can qualify for free assistance from our company.
Can I roll over my existing retirement account into a Gold IRA?
Absolutely! Many investors roll over funds from their existing IRA, 401(k), 403(b), or existing retirement account into a Gold IRA. This is usually done without incurring any taxes or penalties. Your account representative can guide you on exactly how and when you need to do this.
Is a Gold IRA right for me?
A Gold IRA is an excellent investment option if you’re looking to diversify your retirement portfolio and protect it against economic downturns. Gold has stood the test of time for investors for thousands of years. However, like any investment, there are risks. If you have any questions or concerns, we advise you to speak with a professional financial advisor to determine how a Gold IRA aligns with your investment goals.
What happens to my Gold IRA if the value of gold drops?
Gold, like any other asset, is subject to price fluctuations. If gold’s value declines, the value of your precious metals IRA may also decrease. However, many investors choose gold for its long-term stability as a protection against inflation, viewing short-term price fluctuations as part of the overall investment landscape.
Are my metals insured while they are stored at the depository?
Yes, your precious metals are held in a high-security depository and insured by the depository against physical loss, damage, or theft.
How do I liquidate my Gold IRA?
Liquidating a Gold IRA is simple. You simply call your account representative to begin the process of selling your precious metals through your custodian, then withdraw the proceeds. Alternatively, you can take an “in-kind” distribution, which allows you to have your gold or other precious metals shipped directly to you. There may be tax implications, so you will want to discuss these options with your professional tax advisor.