Gold IRA

The IRA or the Individual Retirement Account is made by the IRS in order to give citizens a better plan for their retirement because it helps them save money before they give up their work.

If a person has an IRA, he doesn’t need to pay any kind of capital gains and as well as income taxes on the funds in his IRA. He will only pay taxes when he has already retired and he has withdrawn money.

There are many types of IRA. It can be the traditional IRA, Roth IRA or others. Each of them is different from each other, but they also have similarities. One of the most unique forms of IRA is the gold IRA.

What Is A Gold IRA?

Basically, a gold IRA is a type of IRA which uses gold or other precious metals as investments, instead of money. Why? It is because gold is very flexible. In the past years, it is already used in the trading industry, and since that day, its worth is still recognized.

The gold is like the universal money. Everywhere you go, you will notice that it is important for the people. Lots of industries are using it for their facilities and it is always in demand in the market.

Gold is a good kind of investment. It is because the demand is directly proportional to the price. When the demand increases, it is no doubt that its price will also increase.

When Is Gold Accepted In IRA?

Before 1997, gold or other kinds of precious metals are not yet accepted to be an investment in IRAs. But, after the Taxpayer Relief Act of 1997 was put into place, everyone can already use gold as their IRA investment.

gold bullion and coinsWhat Types Of Gold Are Accepted As Investments?

There are different types of gold. As an investment for IRA, not all types of gold are accepted to be used. The IRS only accepts two kinds of gold and these are gold coins and gold bullions.

Are Other Precious Metals Acceptable As IRA Investments?

Actually, gold IRA doesn’t literally mean that gold is used as an investment to the Individual Retirement Account. Other than gold, some precious metals are accepted such as platinum, silver and palladium. However, there are rules to be followed on their fineness before they are received as investments.

How Much Fineness Is Needed?

Not all gold, silver, palladium or platinum is accepted because there is a specific fineness that should be followed. For coins, the fineness that is needed is 0.9999%.

While for bullion they are:

  • Gold – 0.995+ percent
  • Silver – 0.999+ percent
  • Palladium – 0.9995+ percent
  • Platinum – 0.9995+ percent

What Are The Types Precious Metals Accepted According To Its Fineness?

Fineness of the precious metals is scrutinized before it is accepted as investments. Here are some of the types of precious metals that are accepted.

  1. For Gold, Silver and Platinum
    • American Eagle coins
    • Canadian Maple Leaf coins
    • Bars and Rounds that follow the fineness listed above
  2. For Gold Only
    • U.S. Buffalo Gold uncirculated coins
  3. For Silver Only
    • Mexican Libertad coins
  4. For Platinum Only
    • Isle of Man Noble coins
  5. For Palladium Only
    • Bars and Rounds that follow the fineness listed above

A Review About Precious Metals IRA

gold and silver bullion

If you are planning to have your own gold Individual Retirement Account due to today’s unstable market, then you’re on the right track.  Instead of the usual IRA, a precious metals IRA is better because gold and other precious metals are not influenced by the changes in the stock market and you will surely have safe assets with a precious metal IRA.

What Is A Gold IRA

As the name suggests, a precious metals IRA is a type of IRA that contains precious metals. It is also known as gold IRA because gold is the most common and the most precious metal that is accepted as an investment for the IRA, although other precious metals are also allowed. The other kinds of metal investments are silver, platinum and palladium.

Gold is a metal, which is very precious and it is almost used everywhere. This is why it has never been out in the market. When the gold is in demand, its price increases and it is why it is really the best when it comes to monetary issues. Aside from that, its value is more likely to increase, than to decrease.

The precious metals that are contained in the IRA are owned by the IRA and not by the owner of the IRA. So it means that the IRA itself is the one that handles the payments for purchases, shipping, or deposits. Hence, the gains will also return to the gold IRA.

Types Of Precious Metal IRA

gold bar wrapped in moneyAs said in the previous paragraphs, not only gold is accepted as an investment for your gold IRA. The silver, platinum and palladium are also allowed.

Even though there are various metals that are allowed, there are only two types of precious metals that are accepted and these are the coins and the bullion bars.

Generally, coins are only accepted if they have 0.999+ of fineness. On the other hand, bullion bars will only be accepted if they have 0.995+ of fineness.

However, there are exceptions to this rule and one of them is the American Gold Eagles, which is accepted even though it is less than the required fineness.

If you want to know more about the specific types of precious metals that are approved for your IRA, here are them:

  • For Gold
    • American Gold Eagle Coins
    • Austrian Philharmonic
    • Australian Kangaroo/Nugget Coins
    • Suisse Gold Bars
    • Canadian Maple Leaf Coins
    • Gold American Buffalo Coins
  • For Silver
    • American Silver Eagle Coins
    • Canadian Silver Maple Leaf Coins
    • Austrian Silver Kookaburra Coins
    • Mexican Libertad Coins
  • For Platinum
    • Austrian Koala Coins
    • Canadian Platinum Maple Leaf Coins
  • For Palladium
    • The palladium rounds and bars are also accepted as a precious metal for your IRA as long as it follows the fineness standards of 0.995 or up.

Most of the coins and bars that are listed here have 0.999 fineness. But, take note that if your coins or bars’ fineness is 0.995+, it will still be accepted as an investment.