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To directly invest in physical gold and silver, a specialized type of IRA is required, as regular IRAs do not permit the direct purchase of these precious metals.
Standard IRAs only offer exposure to gold through gold ETFs and stocks, which may not provide the same level of security and tangible asset ownership.
A gold IRA allows investors to hold physical gold and silver within their retirement accounts. The process of transferring an existing IRA into a gold IRA is straightforward and flexible.
Investors are not required to convert all their savings into gold; they can choose the amount that best fits their financial strategy. Additionally, funding a gold IRA can be done through cash contributions, providing further convenience and adaptability for account holders.
By exploring the benefits and simplicity of a gold IRA, investors can diversify their portfolios with the stability of physical precious metals, ensuring a more secure financial future.
Before we get started:
Inflation and rising interest rates has destroyed many people's savings. Many investors feel defeated and helpless, but you can fight back.
Gold and other precious metals have been used to protect against inflation for thousands of years. And when you hold physical in a tax-protected savings account, it gets even better.
Opening a gold IRA can sound complicated, but it's really not.
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Different Ways to Fund a Gold and Silver IRA
With a rollover, the IRA custodian would give the account owner permission to withdraw a certain amount from the account. These funds need to be deposited into the Gold IRA within 60 days.
The IRS penalizes account owners who are under the age of 59-and-a-half 10% of the withdrawal if they don't deposit the funds within 60 days. In addition, IRA account owners are only allowed to make one rollover a year.
An IRA transfer is easier than a rollover because account owners don't need to make a withdrawal, then deposit the funds into their new accounts. The regular IRA custodian would transfer the funds to the Gold IRA.
The IRS allows account owners to deposit money into their IRAs for buying gold, but account owners will still be subject to annual IRA contribution limits.
Open a Gold IRA
IRA owners need to find a company that offers Gold IRAs to set up this type of retirement account. They'll have a form for clients to fill out to open an account. Clients may also choose what specific gold bullion products they want to buy. The products need to be IRA approved to buy them with a Gold IRA.
Gold that customers buy for their Gold IRAs will be stored in a third-party depository. Clients should check that the storage facilities are secure before choosing a company to open an account with. Home storage isn't allowed.
Clients who wish to store precious metals at home will have to use non-IRA funds to buy them.If an account owner were to try storing IRA gold at home, then the IRS may charge them an early withdrawal penalty and taxes. In some situations, the IRS could shut down the account.
Gold from a Gold IRA can only be stored in an IRA-approved facility. Custodians can make recommendations on approved organizations for storing IRA gold.
Transfer Funds
To transfer an IRA to a Gold IRA, account owners need to contact the administrators of their IRAs. There will be paperwork to fill out that asks for the Gold IRA's account information and how much is going to be transferred.
After the paperwork is submitted, the administrator wires the funds into the Gold IRA. Once the money has been transferred, account owners can buy IRA-approved gold with the funds. After choosing what they want, they can let their custodians know to buy the specific products.
IRA-Approved Gold Bullion Products
Gold bars must be at least 99.5% purity to be stored in a Gold IRA. All coins, except for the American Gold Eagle, also need to be at least 99.5% gold.
Common types of gold investment coins that people buy with their Gold IRAs are the:
Coins that the IRS doesn't allow to be held in a Gold IRA are United Kingdom Sovereign coins and the South African Krugerrand. If an account owner buys a prohibited gold bullion product with their IRA, then the IRS will disallow it.
Account owners who are under the age of 59-and-a-half would also receive a 10% early withdrawal penalty.
Gold bullion products must also be accredited or certified by an IRA-approved organization, such as the:
Proof coins have to be in excellent condition and their original packaging. The certificate of authenticity needs to be included too. Non-proof coins need to be free from damage and in brilliant uncirculated condition.
Small gold bullion bars, excluding 400-ounce bars, must be at their exact weight specifications.
Gold IRA Fees
Some custodians charge a fee for IRA transfers and setting up an account. Wire transfers may cost around $25 per transfer. From the government side, account owners don't have to pay a fee to transfer their IRAs to gold.
Clients can find custodians who don't charge an account setup fee. Some companies may require that the account owner make a minimum deposit into their Gold IRA to avoid an account setup fee. The fee for opening an account could be as little as $50 or in the thousands of dollars.
Custodians usually charge an annual maintenance fee of $75 to $300. Some custodians might charge a higher fee on large accounts of $100,000+, but this won't be a major difference. The annual maintenance fee on a large account may be $275. This fee is for covering the expenses of overseeing the Gold IRA.
Storage fees could be either a flat rate or a percentage of the account owner's gold holdings. This fee is usually higher when the account owner has more gold to store.
Some custodians include insurance fees with their storage fees. Account owners must check the terms of their Gold IRAs to know if the insurance fee is separate. Insurance may cost $100–$300 per year.
Seller fees could be involved when clients buy gold for their Gold IRAs. The average fee per transaction is $40. Seller fees depend on what type of gold the account owner is buying and what the current market conditions are. Some sellers charge a little more than the current spot price of gold as well.
If an account owner wants to close their Gold IRA, then there may be a closing fee. The typical account closing fee is $250. This is also referred to as a cash-out fee.
Some custodians waive all fees for the first few years of opening a Gold IRA. This may sometimes only be an option for account owners who have a large enough balance.
Taxes for Opening a Gold IRA
The government doesn't charge a tax for opening a gold IRA. Transfers and rollovers are also tax-free. However, account owners will have additional record-keeping and tax-reporting responsibilities.
Should You Transfer Your IRA to Gold?
One of the biggest reasons to transfer an IRA to gold is to protect against inflation. Buying gold is a strategy that people have used for many years to preserve the value of their savings as the purchasing power of the US Dollar goes down.
Opening a gold IRA would help diversify one's investments. It's riskier to have all of one's money in a single type of investment.
Young people who have just started saving for retirement may not want to open a Gold IRA just yet because of the annual fees. Account owners should consider the total fees to know whether or not opening a Gold IRA is worth it.
Waiting a few years might be a better strategy for those who have brand-new IRAs.
Best Companies for Transferring an IRA to Gold
1. Goldco
Goldco is rated highly across several review sites, including five stars with the Better Business Bureau, five stars with TrustLink, and 4.8 stars with Consumer Affairs. Sean Hannity has recommended Goldco to his friends, family, and audience.
Chuck Norris, Ben Stein, and Stew Peters are other notable figures who have endorsed the company. At the 2022 Stevie Awards, Goldco won Company of the Year. For six years, Goldco has also received Inc. 5000 recognition. The company has been in business for over 10 years.
Goldco sometimes offers to waive their insurance and storage fees for the first year of opening a Gold IRA. They may give a precious metals bonus as part of their introductory offer too. It's easy to open a Gold IRA with Goldco. Company representatives can walk clients through the entire process.
Clients are happy that the quality of customer service is consistent each time they need to interact with the company. Everyone that they have spoken to was professional, knowledgeable, and patient.
In addition to gold IRAs, Goldco offers silver IRAs and precious metals IRAs. Clients can choose from a long list of gold and silver investment coins, including the common and uncommon. Coins may be minted in the US, Canada, Australia, or New Zealand.
Gold bullion products that the company stocks include the:
Many of these investment coins are available in silver versions too.
The company offers free educational material on precious metals, investing, and recessions. Some of their articles assess the banking system and bring awareness to potential problems. Committed to educating others about wealth, Goldco has over 800 pages of articles.
Augusta Precious Metals is one of the top choices for IRA rollovers and transfers into gold. The co-founders worked as senior account executives with a specialty in assisting clients with precious metals IRA accounts.
They continue to prioritize education to ensure clients understand what they're doing before making the final decision to set up a gold IRA. Augusta Precious Metals is A+ rated and accredited by the Better Business Bureau.
Clients can apply for a gold IRA by filling out an online or a paper application. The terms and conditions are easy to understand. Augusta Precious Metals keeps its fees low.
It only costs $50 to open a gold IRA, $95 for annual maintenance, $150 for segregated storage, and $100 for commingled storage. Outgoing domestic wire transfers are $35. If a client wants to close their account, then there's a $250 charge.
Customers describe the company representatives as knowledgeable about their products and the precious metals industry. They found it easy to transition an IRA to gold.
Augusta Precious Metals has a five-star rating from customer reviews on Trustpilot. From 2015 to 2020, Augusta Precious Metals won the annual Best of TrustLink Prize.
Augusta Precious Metals offers both gold and precious metals IRAs. Clients can also order gold, silver, platinum, and palladium bullion products separately for home deliveries.
Gold bullion products that are available include:
Many of these investment coins contain 99.99% gold. Augusta Precious Metals provides clear descriptions of its products. However, clients need to contact the company to ask about prices.
Clients can get a free gold IRA guide when they sign up for their email newsletter. Other types of educational content that clients can find on the website are articles, charts, graphs, and videos on gold and other precious metals.
- Company Reputation
American Hartford Gold has an A+ rating with the Better Business Bureau and a five-star rating with Trustpilot based on over 1,000 customer reviews. The Inc. 5000 list included American Hartford Gold three times.
On one of these occasions, the company took the No. 1 spot. Lou Dobbs, Bill O'Reilly and Rick Harrison have sung praises of the company too. Sanford Mann founded the company in 2015 after having over a decade of experience in the precious metals industry.
The principles that he cares about are providing customers with unlimited education and good deals.
- Account Setup and Fees
American Hartford Gold transfers funds from an IRA to a gold IRA within three days. There are several depositories across the country where clients could have their precious metals stored, including Delaware, New York, Texas, Utah, and California.
American Hartford Gold doesn't charge account setup fees. Their annual maintenance fees are around $180. They don't charge liquidation fees if clients want to sell precious metals to them.
- Customer Service
Company representatives provide the information that clients need to know and don't pressure them to buy other products. They patiently guide clients throughout the entire process of setting up their Gold or Precious Metals IRAs.
American Hartford Gold offers precious metals IRAs, gold bars, gold investment coins, silver bars, and silver investment coins. They don't offer platinum or palladium products.
Types of gold bullion products available include:
- Saint Helena Sovereign
Clients can filter their searches based on IRA approval. 14 gold products are IRA approved.
Clients can get a free 25-page investment guide on gold and silver by signing up for their email newsletter. The company shares key information on economic news, such as failing banks, oil cuts, and inflation.
Transferring an IRA to gold is a smooth, quick process. Account owners must find a reputable company, then sign an agreement form to open their Gold IRAs. The application process can be handled online.
Red Rock Secured has hundreds five-star reviews from customers. For over 10 years, the company has been accredited by the Better Business Bureau.
Red Rock Secured maintains a 4.8-star rating with Trustpilot and an A+ rating with the Better Business Bureau. Although there were a few customer complaints, the company responded politely and made efforts to resolve the issues.
In one situation, the customer didn't provide pictures of their allegedly damaged products.
Account owners must fill out an application form and wait for a phone call from one of the company's Precious Metals IRA experts. The company representative will cover the process of opening a Gold IRA and help clients choose their metals.
Red Rock Secured has several secure storage facilities across the US that clients get to choose from. Clients are allowed to visit the storage vault to verify their holdings, although they'll need to schedule an appointment.
Storage fees are based on the value of the client's holdings and where they are stored. Clients need to contact the company to know the fees that they'll need to pay.
Red Rock Secured ships products quickly and patiently guides clients through the process of setting up Gold and Precious Metals IRAs. The company also follows up with customers to ensure they are happy.
Red Rock Secured sells gold, silver, platinum, palladium, and copper bullion products in addition to Gold and Precious Metals IRA services. The company also offers collectibles, jewelry, and accessories.
Available gold products include:
Red Rock Secured includes pricing info and clear descriptions of their products. Clients can filter their searches based on price, weight, and year.
Charts and other educational content are available. Red Rock Secured provides beginner guides on gold, silver, and investing. Additional information pertains to understanding platinum, palladium, types of investment coins, and market conditions.
Remember to read our list of the Best Gold Investment Companies to work with, before investing your hard-earned savings!
>> CLICK HERE to read our list of the Top Gold IRA Companies. <<
Charles Turner
Hi, I'm Charles Turner, founder of Turner Investments. I created Turner Investments to provide education and guidance to individuals interested in personal finance.
My goal is to make Turner Investments a valuable resource for anyone looking to learn more about personal finance and make smarter investment decisions.