how to buy gold in ira account

Gold or any other precious metal is one of the most appealing assets for retirement investing. IRA doesn’t allow collectibles such as precious metals as part of an investment. However, there are several legal ways to engage in IRA gold investment. So, here’s how to buy gold in IRA account.

How to Buy Gold in Your IRA Account

1. Gold IRA concept

Investing in gold for your retirement requires a gold individual retirement account, widely known as a gold IRA. Gold IRA is a self-directed individual retirement account that allows you to own and purchase physical gold bullion. Other than gold, self-directed IRA gold allows you to invest in real assets such as real estate and cryptocurrencies.

When speaking about tax, Gold IRA follows the same rules as regular IRAs. The same rules applied to contribution limits and withdrawal rules. The only difference is the required additional report for the more complex Gold IRA.

2. The role of custodians

When investing in gold IRA, a custodian is necessary as a facilitator to provide paperwork management and tax reports. Additionally, the custodian can also facilitate the storage required for gold bullion. In short, you are required by an IRS-approved bank to store your gold.

Alternatively, you can also use the service of IRA approved third-party company to act as both paperwork manager and gold storage. A specific company such as Augusta Precious Metals is famous for its ability to provide those requirements for gold IRA.

3. Gold IRA purchase

So, how to buy gold in IRA account? Some companies require various processes to open gold IRAs. In a company like Augusta Precious Metals, you can open a gold IRA in just four easy steps.

First, you need to fill an online form consisting of account holder information, designation of beneficiaries, and current custodian information. Next, you have to wait for up to 24 hours for your account to be processed. After that, you can transfer your fund to your new account. And finally, you can place your order.

What if you already own a regular IRA? Optionally, you can choose between rollover or transfer. The transfer method allows you to directly move your assets from one IRA custodian to another. On the other hand, a rollover can be used if you received distributions from your previous IRA. You can then turn around the distribution to your new gold IRA within a specific time limit.

4. Allowed investment assets

The IRS has strict rules regarding certain assets in IRA, especially gold. The basic rule is that you are only allowed to purchase gold with at least 99.5% purity. In terms of gold coins, you can only purchase some IRS-approved coins. Some of them include American Eagle Coins, Australian Kangaroo/Nugget Coins, and Canadian Maple Leaf Coins.

In conclusion, there are several points on how to buy gold in IRA account. First, investing in gold for your IRA is allowed if you use a self-directed gold IRA. When investing in gold through IRA, it is required that you hire a custodian for managing your paperwork and taxes. Alternatively, you can also use IRS-approved third-party companies such as Augusta Precious Metals for easier and accessible gold investment.