What is a Precious Metal IRA?

Protect Your Retirement Account With the Power of Precious Metals

Planning for retirement now will set you up for a more successful future. However, many investors, just like you, watch the news, look at world events, and see a lot of economic uncertainty. How can you be sure that the money you are putting away now will still be there when you are ready to retire?

This is a difficult question, but one answer is to plan smarter — and the way to do this is to diversify your portfolio. With so much market volatility and inflation rearing its ugly head, more and more investors than ever before are turning to precious metals as an alternative to cash, stocks, and bonds.

You can open a self-directed IRA, which is funded with precious metals, just like you can open a traditional or Roth IRA backed by paper investments. With precious metals, however, you are putting yourself in a position to get through these tough economic times, and not only take advantage of the tax benefits associated with these accounts, but also to have a much higher chance of gains when compared to conventional IRA options.

At Precious Metals IRA Accounts, we are specialists in helping people understand precious metals IRAs (also known as gold IRAs). We have decades of experience in this industry, we are familiar with the most well-known precious metals dealers, and we have reviewed most of the gold IRA companies out there. With this, we are in a position to offer transparent guidance, and we share information on how to make the investment process simple and secure.

Whether you are planning now for your retirement in 10 or 20 years, or you want to rollover a conventional IRA or 401(k) to a gold IRA account, Precious Metals IRA Accounts is here to help.

Precious Metals IRA, Gold IRA, Silver IRA – What Are They?

A precious metals IRA, also called a gold IRA (if you have gold in the account), or a silver IRA (if you have silver in the account), is a type of retirement account regulated by the Internal Revenue Service.

Technically known as “self-directed IRAs,” these are individual retirement accounts that allow an investor to use physical precious metals, like gold, silver, platinum, and palladium, to fund their account. This differs from conventional IRAs, which are funded with paper assets like stocks, mutual funds, and bonds.

If you choose a “regular” IRA, which is backed by paper assets, it is managed by a firm, in most cases, and they pick and choose which assets are included. With a precious metals IRA, however, you get to choose. From gold coins and silver bars to platinum bullion and palladium, you have full control of what goes into the account. However, the metals you choose must meet IRS guidelines:

You can get a gold IRA in all of the standard forms including traditional IRAs, which are funded with tax-deferred contributions, a Roth IRA, which offers tax-free growth and withdrawals, as well as SEP and SIMPLE IRAs, which are used by self-employed individuals and small businesses.

The best news? If you have a current 401(k) or existing IRA, you can rollover or transfer the funds into a precious metals IRA without having to pay any tax penalties.

Reasons to Put Your Retirement Savings into a Precious Metals IRA

There are many reasons to invest your retirement savings into precious metals. Here are some of the most common:

Hedge Against Inflation and Market Uncertainty

For centuries, gold and other precious metals have been high valued. Over time, we have seen that these assets tend to perform very well during times of economic uncertainty and inflation. This is why we consider them to be a safe haven asset. When the economy is on a wild ride, paper currencies tend to lose value. Precious metals, however, tend to do the opposite, and they retain or increase in value. This may make them a safer option than paper assets if you want to protect your purchasing power.

Investing in Precious Metals Helps Diversify Your Retirement Portfolio

A well-diversified portfolio has a lot more than stocks, bonds, and mutual funds in it. Adding precious metals investments into your IRA allows you to spread out the risks you are taking across different asset classes. This helps to reduce your risk when the stock market becomes volatile. Since precious metal values tend to move in the opposite direction of the stock market, when downturns occur, historically, metals have remained relatively safe.

You Own Physical Gold, Silver, Platinum, or Palladium

At the end of the day, a stock is only a piece of paper, or the record of ownership. You cannot hold an actual stock in your hand. Physical metals, however, can be held. You can touch them, feel them, and as an investor, that can bring a lot of security.

For an IRA, you must store your gold, silver coins, or other metals in a depository. These are high security vaults regulated by the IRS. However, if you buy precious metals of any type, from gold bars to platinum coins, for investment purposes, you can store the actual metals at home, in a bank account, or anywhere else you believe they will be safe.

Long-Term Value and Global Demand

Precious metals have been valued for thousands of years. Gold, for instance, is not only used to make coins or jewelry; it is also used in industry and electronics. There is also a limited supply of gold and other precious metals, which means these assets will only continue to gain value over time.

What Metals Can You Hold in a Precious Metals IRA?

As mentioned, the IRS has very specific rules about which coins and metals can be included in an IRA. All of them must meet minimum fineness requirements.

Here are the metals that are allowed in an IRA as well as minimum purity requirements and examples of common coins:

Gold – 99.5% pure or higher

• American Gold Eagle

• Canadian Gold Maple Leaf

• Australian Kangaroo

• Gold bars from approved mints from around the world

Silver – 99.9% pure

• American Silver Eagle

• Canadian Silver Maple Leaf

• Austrian Silver Philharmonic

• Silver bars from approved mints from around the world

Platinum – 99.95% pure

• American Platinum Eagle

• Canadian Platinum Maple Leaf

• Platinum bars from approved mints from around the world

Palladium – 99.95% pure

• Canadian Palladium Maple Leaf

• Palladium bars from approved mints from around the world

Collectible coins and numismatic coins are not permitted in a precious metals IRA under IRS regulations. The IRA custodian you choose to work with should tell you if the coins a precious metals dealer is offering is eligible for an IRA. It’s very possible that certain one ounce silver coins a company sells, certain platinum coins, or other metals, may not be eligible, too, as they may not come from an approved national government mint.

The Step-by-Step Process of Setting Up a Precious Metals IRA

Now that you know about the benefits of a precious metals IRA, like tax advantages, you may be ready to start the process of investing in one. Many people think that setting up a precious metals IRA is going to be difficult, but honestly, it couldn’t be simpler. In fact, it’s often much easier than other investments. Here’s a step-by-step process for those who are ready to start an IRA backed by precious metals.

Step 1: Open a Self-Directed IRA

The first step, of course, is to open the IRA account. To do this, you will need to work with a custodian. These are companies that specialize in alternative assets, like precious metals. Unlike a standard brokerage account, a self-directed IRA allows you to invest in physical assets, like gold.

We have worked with many custodians, and we have suggestions on which might be best for you.

Step 2: Fund Your Account

Once the account is open, there are three different ways that you can fund it:

• Fund it with cash

• Rollover from a 401(k), 403(b), or TSP

• Transfer from an existing IRA

As long as you do the rollover or transfer correctly, you won’t need to pay taxes. There are contribution limits, as you allow your account to grow, so it’s best to talk to a tax advisor or other financial professionals.

Step 3: Select and Purchase Your Metals

Once the account is fully funded, you can now choose a precious metals dealer to buy your IRS-approved assets. There are a few things to keep in mind here. Some of these companies have higher fees than others, and some might have vary high markups over spot price compared to their competitors. You should also consider shipping and storage fees. For instance, some companies offer flat rates and others may charge by weight, value, or other classifications.

At Precious Metals IRA Accounts, we have also reviewed many IRA companies, and we invite you to check those out before making your final choice.

Step 4: Secure Storage in an IRS-Approved Depository

IRS rules require that all IRA-owned precious metals must be stored in a secure, third-party depository. These facilities are highly secure, fully insured, and audited regularly and adhere to the strict IRS rules that are in place.

You can choose between:

• Segregated storage (This is when your metals are stored alone)

• Commingled storage (This is when your metals are stored with others of the same type)

Risks and Considerations of Opening a Precious Metals IRA Account

No investment is 100% safe, and because of this, it’s important that you realize that future results are not guaranteed. There are risks and considerations that everyone should consider before investing. Here are some of the things you should keep in mind about investing in a precious metals IRA:

• Price Fluctuations: Metal prices can go up and down just like cash, stocks, bonds, ETFs, etc.

• Storage Fees: Depository storage and custodian management involve annual fees. Most people pay $150 to $250 for storage every year, but costs vary.

• Liquidity: While metals can be sold, they may take longer than stocks to liquidate. Various forms of metals tend to sell better than others.

• RMDs: Traditional IRAs require Required Minimum Distributions starting at age 73, even for metal holdings.

All of this being said, the long-term benefits often outweigh these considerations, especially when paired with other asset classes in a well-diversified portfolio.

FAQs About Precious Metals IRA Accounts

Can I take physical possession of metals in my IRA?

No. IRS rules require metals to be stored in a depository while held in your IRA. However, you can take distribution in physical metals during retirement.

Is there a minimum investment amount?

There likely is, but this is determined by the company you work with. Most custodians and dealers require an initial investment of $5,000–$10,000, but others might require their customers to pay more.

Are there taxes or penalties for rolling over my 401(k)?

There are no penalties if it’s done correctly. A direct rollover into a self-directed IRA is a tax-free, penalty-free act.

How long does it take to set up a precious metals IRA?

It generally takes 1–2 weeks from opening your account to having metals stored in a depository.

Start Your Precious Metals IRA Journey Today

Your retirement deserves more than just paper promises. With the information available from Precious Metals IRA Accounts, you are now in a much better position to make an informed decision about investing in a self-directed IRA. Whether you’re concerned about inflation, market volatility, or simply want greater control over your retirement future, our team is here to help.

Let Precious Metals IRA Accounts help you turn your retirement savings into something real, secure, and lasting.

Choose from one of the precious metals IRA companies we’ve fully vetted below.