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Thankfully it’s easy to do, particularly when you work with trusted partners like Goldco, who have helped thousands of people just like you navigate the gold IRA process. So you too can learn just how simple it can be to set up a gold IRA account.
A gold IRA is an IRA (individual retirement account) that holds physical gold coins and gold bars. Like every other IRA account, gold IRA assets are administered by an IRA custodian.
Gold IRAs offer the same tax advantages as any other IRA account, which allows you the ability to purchase and own gold coins and gold bars in a tax-advantaged retirement account and still enjoy the same tax benefits as any other IRA.
If you’re looking into setting up a gold IRA account, you likely already know some of the benefits of owning gold. But here are a few of the most important reasons people choose to own gold.
One important reason to own gold is because it can provide some much needed portfolio diversification. Many people think that diversification means just buying a mix of stocks and bonds.
But during recessions and financial crises, both stocks and bonds can lose value. And gold can act as a countercyclical asset, gaining in value when other assets are losing value.
Holding gold as a means of diversification can help mitigate losses elsewhere in your portfolio, which is one of the goals of portfolio diversification.
Gold has traditionally been seen as a hedge against inflation. During the stagflation of the 1970s, for instance, gold’s annualized growth rate was over 30% per year over the course of the decade, far outpacing double digit inflation.
With inflation having become resurgent in recent years, and remaining problematic today, many people are turning to gold to help protect and safeguard the value of their savings and investments against inflation.
If inflation remains problematic in the future, or if it begins to rise as the Federal Reserve loosens monetary policy to combat recession, gold could once again gain popularity as an inflation hedge.
One of gold’s primary roles is that of a safe haven asset. Whenever financial turmoil and economic uncertainty rise, gold becomes one of the assets that grows in popularity.
During the 2020 recession, gold shot up in popularity as a safe haven asset, helping push the gold price to all-time highs. And in recent months gold’s popularity has grown, as recession fears have grown stronger.
That has helped push the gold price even higher, setting numerous all-time highs. And if the US economy enters recession in the near future, the gold price could push even higher.
In addition to the advantages offered by owning gold, gold IRAs offer their own advantages as well.
When you work with trusted partners like Goldco, you can trust that the gold coins or gold bars you’re buying are guaranteed to be authentic. Goldco works with mints around the world to source gold coins directly from the source, getting you authentic gold coins quicker.
Because your gold IRA assets will be stored at a bullion depository, you don’t have to worry about security. The depositories at which our customers store their gold IRA assets are among the most secure and most trusted bullion depositories in the industry, with multiple layers of security to ensure that your gold assets will remain safe and secure.
The gold coins or gold bars in your gold IRA also give you the advantage of tangibility, something increasingly rare in today’s electronic world. Your gold IRA assets aren’t just some figures in a database on a server somewhere, they’re actual physical gold held in a depository.
While you can’t store your gold IRA assets at home, some depositories allow you to visit and ensure that your gold coins or gold bars are being properly stored.
Gold IRAs also offer the option of in-kind distributions. While many people choose to take a cash distribution, you can also choose to take your distribution in the form of physical gold.
This isn’t random gold either, it’s the exact same type of gold coins or gold bars that you decided to purchase when you first started your IRA. And you have the option to hold onto them after you choose to or are required to take a distribution from your gold IRA.
Gold IRAs are subject to the same rules and regulations as any other IRA account. But there are a few that gold IRA owners will want to pay special attention to.
All IRA accounts, including gold IRAs, are forbidden from acquiring collectibles. The definition of collectibles includes coins and metals, except for a few important exceptions.
For purposes of IRA investments, Gold, Silver, and Platinum American Eagle coins are not considered collectibles, as well as any gold, silver, platinum, or palladium bullion meeting minimum fineness requirements for futures contracts.
For gold, this means that any gold coins or bars with a minimum fineness of .995 (99.5% pure gold) are not considered collectibles for IRA acquisition purposes.
So if you had hoped to add South African Krugerrands or pre-1933 US gold coins to your gold IRA, you’re out of luck, because those coins have metal contents lower than 99.5% gold.
But there are plenty of other IRA-eligible gold coins out there, and Goldco works directly with mints around the world to source them for you. That’s why it’s helpful to work with trusted partners like Goldco, to ensure that you don’t have to do the work of determining whether the gold coins you’re interested in are IRA-eligible or not.
Gold IRAs are also subject to the same IRA rules regarding contributions and distributions. For 2024, the maximum annual contribution to a gold IRA is $7,000, or $8,000 if you’re over age 50.
If your gold IRA is a Traditional gold IRA, you’ll be required to take required minimum distributions (RMDs) at age 73. If your gold IRA is a Roth IRA, there are no RMDs.
Distributions from a gold IRA are taxed just like distributions from any other IRA account, and early distributions are subject to the same taxes and potential penalties as with any other IRA account.
Rollovers and transfers of funds to a gold IRA are not subject to the annual contribution limit, which makes them a popular method of funding gold IRAs. Most rollovers and transfers from 401(k), 403(b), TSP, IRA, and similar accounts into a gold IRA can be made tax-free.
These rollovers and transfers can help you safeguard your retirement savings by giving you more options, allowing you to move existing retirement savings tax-free into physical gold coins and gold bars.
Setting up a gold IRA doesn’t have to be difficult. And even if you’re funding your gold IRA with a rollover or transfer, it can be done relatively quickly. Here’s how.
The first step to setting up your gold IRA is to sign your customer agreement with Goldco, acknowledging that you agree to our terms of doing business. Once you do that, you can choose your gold IRA custodian and open up your gold IRA account.
The second step is to fund your gold IRA. For most people this is going to be done with a rollover or transfer from an existing retirement account.
To start the rollover process you’ll contact your existing retirement plan administrator and fill out any paperwork you need to. Between paperwork, signatures, and sending your funds, expect this rollover process to take 1-2 weeks.
Once your gold IRA is funded, you can choose which gold coins or gold bars you purchase with your gold IRA assets. Goldco offers a wide variety of IRA-eligible gold coins and gold bars.
After you purchase your gold coins, they’ll be shipped to the bullion depository you’ve selected, where they’ll be kept safe and secure. Your gold IRA custodian will provide you periodic updates on your gold IRA holdings, so be sure to read up on how to read your gold IRA statement.
The only decision you’ll have to make after that is when or how (in the case of RMDs) to take a distribution from your Gold IRA. And depending on your age, that could be many years in the future.
As you can see, setting up a gold IRA isn’t that difficult. Anyone can do it, especially if you work with trusted partners like Goldco.
We have helped thousands of customers benefit from owning gold, and with over $2.5 billion in precious metals placements we have worked hard to become one of the most trusted gold companies in the country.
At Goldco we believe that everyone should have the ability to benefit from owning precious metals. Whether you want to set up a gold IRA or make a direct cash purchase of gold or silver coins, we have options available for you.
Don’t wait any longer to start protecting your hard-earned savings and investments. Call Goldco today to learn more about how a gold IRA can help you safeguard your financial future.
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