Gold IRA Coins

When most people think of an IRA, they visualize a Retirement account that holds stocks, bonds and Mutual funds.

This is the most common type of IRA, but there are other types that allow tax-advantaged Investments in asset classes like Real Estate, startup companies, and Precious metals.

A Gold Coin IRA is a self-directed IRA (SDIRA) that holds physical Precious metals like Gold Coins and bars. These Investment vehicles are also referred to as “Gold IRA”, “Silver IRA”, and “Precious metals IRA” because they can hold any of the IRS-approved Precious metals: Gold, Silver, Platinum, and Palladium.

Gold IRA

Investors are usually attracted to Precious metals when they feel some insecurity or anxiety about their existing financial situation.

Many investors diversify their retirement funds into Gold and Silver after becoming uncomfortable with the over-inflated stock markets and the financial shenanigans played on Wall Street.

Paper investments like stocks and bonds all have counterparty risk which means that other parties can default on their contractual obligations, causing the investor to lose all or part of their Investment.

With physical Precious metals there is no counterparty risk because there are no counterparties.

Besides counterparty risk, Investors are moving into Precious metals because of rapidly rising Inflation, rumors of a Global Economic Reset, and mounting tension between the world’s super-powers.

One of the primary Gold IRA benefits is that investors use their tax-advantaged retirement savings to gain the security of physical Precious metals.

What is a Gold IRA rollover

The IRS allows investors to move retirement savings from one account to another one time per year. These moves are referred to as "rollovers".

An investor with a traditional IRA performs a Gold IRA rollover in order to purchase physical Gold with their tax-advantaged retirement money.

There are no taxes and penalties for performing a Gold IRA rollover since the investor’s funds simply move from one IRS-approved Trustee to another.

Gold Roth IRA

Precious metals IRAs can be established with either before-tax (tax deferred) or after-tax (tax-exempt) money.

An IRA established with after-tax money is known as a Gold Roth IRA.

Pre-tax money is used to establish a traditional Gold IRA.

Capital gains on Precious metals in a Gold Roth IRA are tax free while capital gains in a traditional Gold IRA are taxed as regular income. 

Investors typically use a Roth IRA when they think their taxes will be higher in retirement than today.

A Roth IRA may also make sense if the retirement funds could be needed before age 59 ½. The money in a Roth Gold IRA has already been taxed so distributions can be taken without penalties.

A Traditional Precious metals IRA appeals to Investors who expect their tax rate to be lower during retirement. They set aside pre-tax income today for distribution at a (hopefully) lower tax rate in the future.

Gold IRA vs physical Gold

The key difference in a Gold IRA vs physical Gold is that tax-advantaged funds are used to purchase metal in a Gold IRA while only after-tax funds can be used to purchase physical Gold outside the financial system.

The ideal Precious metals Portfolio begins with an Investment in physical Gold and Silver purchased with after-tax money. This metal is stored locally where it can be easily accessed. Vaulting services are available in larger cities.

After acquiring an adequate supply of metal for personal possession, investors with tax-advantaged Retirement accounts can acquire additional physical Gold and Silver by opening a Gold IRA.

Home storage Gold IRA

The IRS requires that you hold the physical metal in your SDIRA with a third-party Custodian.

A home storage Gold Coin IRA (also known as a Checkbook IRA) attempts to get around this rule by forming an LLC or other legal entity to hold the Precious metals.

There are two risks here.

First, a custodian has to meet a set of lengthy legal requirements. If the LLC doesn't comply with these requirements, the IRA may be invalid.

Second, there is a temptation to move assets in and out of a checkbook IRA without making proper contributions and withdrawals. Violating regulations or being sloppy with documentation may cause the IRS to declare the retirement account invalid.

If the IRS declares the home storage Gold IRA invalid the investor may be subject to penalties, back taxes, and interest for the years in which the IRA didn’t comply with IRS regulations.

Gold IRA tax rules

There are just a few IRS-mandated Gold IRA tax rules to keep in mind:

When transferring funds from one retirement account to another the Investor has 60 days to complete the transaction without tax consequences.

Investors can have more than one IRA at a time. Opening a Precious metals IRA has no affect on existing IRAs.

Investors can contribute to more than one IRA in any given year. For example, a 50-50 allocation strategy would place $3,000 per year into an IRA holding stocks and bonds while another $3,000 went into a Precious metals IRA.

The IRS has limitations on the Precious metals held in IRAs. In general, Bullion bars and Coins of 99.95% purity are allowed along with Coins from government mints.

Gold, Silver, Platinum, and Palladium can all be held in a Precious metals IRA.

Distributions can be taken as cash or physical metal.

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Gold IRA Fidelity

On the long extreme of the ‘years in business’ scale is Fidelity Investments, founded in 1946.

This massive Investment management firm has more than 25 million customers and over $2 trillion in assets under management.

The Fidelity Gold IRA has a very low minimum Investment so investors can easily start a Roth IRA using after-tax income.

Another positive for Fidelity is that the company doesn’t offer any proof Coins. There is no temptation for high-pressure sales tactics because the only IRS-approved products available are Bullion bars and Coins.

Investors who focus on BBB ratings may be concerned about Fidelity having a C- rating.

Before scratching Fidelity off the list of candidate companies, consider calling a company representative and asking them why their BBB rating is lower than their peers. Perhaps the rep will have a good explanation.

Startup fees at Fidelity may be a little higher than other companies but Fidelity’s low minimum Investment ($1,000) could justify this added expense.

Best Gold IRA

The best Gold IRA is the one that the Investor feels comfortable with based on their unique Investment objectives.

Some Investors will choose their ‘best’ based on the location of the depository, while other Investors might give the ‘best’ designation to the candidate offering the juiciest promotion.

There are a few factors we can list as ‘must haves’ for candidates to be on the Gold Coin IRA list:

Gold IRA company reviews

There are several websites that gather customer reviews as a service to consumers.

Investors can use these resources to find Gold Coin IRA reviews.

Customer reviews posted on sites like BBB and Consumer Affairs are likely to be real while reviews found by searching the internet on terms like “Gold IRA reviews” are usually posted by affiliate marketers.

After doing a little research you will likely notice the difference between legitimate customer reviews and the reviews created by affiliate marketers.

In the table below we list some of the most popular SDIRA companies as candidates for your consideration. Most of these companies offer free Investment kits if you visit their website.

Conclusions

Gold Coin IRAs allow Investors to hold physical Precious metals inside tax-deferred retirement accounts.

The primary benefit is the security and diversification it provides for a traditional retirement Portfolio of stocks and bonds.

Investors can add Gold Coins to their retirement plan without facing any tax consequences by using the 401K to Gold IRA rollover process for their eligible 401K account.

The fees for purchasing, selling, and storing physical Precious metals increase the overall cost of the Investment vehicle.

Reviews of SDIRA companies can be found on the websites that compile consumer reviews. These reviews are more likely to be legitimate than the reviews found by searching "Gold IRA reviews" on the internet.