What is a gold-backed or precious metals-backed IRA?
A gold-backed IRA is simply another IRA option – a traditional IRA or a Roth IRA that is “rolled over.” The difference between a gold-backed IRA and the IRA that you have now is the investment vehicle. In a gold-backed IRA or precious metal-backed IRA, the investment vehicle is real physical gold and/or silver stored in a vault, not paper investments like stocks, mutual funds, money markets, or cash. Any individual qualified retirement plan is eligible, including 401k, 403b, TSP, TSA, Simple and SEP IRAs.
What are the advantages of a precious metals-backed IRA?
By backing your IRA with precious metals like physical gold and silver, you are protecting your retirement money with assets that have been the number one wealth preserver of choice for over 5,000 years. And precious metals, like gold and silver, have produced tremendous gains for investors and retirees for the last several decades. What’s more, by taking a percentage of your wealth out of paper-based investments and putting it into hard physical assets like gold and silver, you are preventing the banking system access to your wealth and thus shielding yourself from a system-wide collapse like we had in 2008.
Are the rules any different with a Gold IRA?
The rules are the same in terms of contributions, distributions and access to your funds. The difference is that your retirement wealth is now in real physical precious metals sitting in a vault, as opposed to paper promises sitting with a bank holding company.
Can I make any changes once I open a Gold IRA?
You can still sell any of your holdings at any time, switch your investment direction, or even roll the funds back into a paper-based IRA down the road with zero tax implications if you’d like.
Who holds my gold-backed IRA?
All IRAs must be held by a federally-licensed custodian, and there are several custodians who are set up for precious metal-backed IRAs. All of these custodians use a secure and insured vaulting location. Based on size, type of metal and IRA type, we will help you choose the best custodian.
Where does the custodian store my IRA gold?
All precious metal custodians store your metals in the Delaware Trust Depository (DDSC) in Wilmington, Delaware. DDSC is an exchange-approved precious metals custody and distribution center providing vaulting and shipping services to financial institutions, industrial companies, and investors worldwide. They are also fully insured.
Can I hold the gold that I purchase with my IRA funds at my house or my own safe deposit box?
Not until you take a distribution which, can be done either in gold or cash equivalent. All IRA investments must be held by a federally-licensed IRA custodian. Just as you can’t hold the stock certificates or cash in a money market that exists inside of your IRA, you can’t personally hold the gold you purchase with your IRA funds. However, at least with physical precious metals, you always have the peace of mind of knowing you maintain a valuable physical asset sitting in a segregated vault protecting your retirement.
Is there anything I can do to speed up the transfer process?
Yes, it’s much easier to move cash, savings, or money market funds quickly. So if you are moving funds from an IRA that are currently invested in stocks, bonds, mutual funds or anything else that has needs to be sold by a broker, liquidate those investments so that all the money you intend to move is sitting in a cash-type account. There is a 3-5 business day federal holding period to liquidate any paper investments, so those things will need to be liquidated and settled before any transfer can happen. But again, the delays are minimal.