Precious Metals
Americans today hold $15.2 trillion in IRA accounts, making them the most popular method of saving for retirement. But assets in IRAs, just like in other financial accounts, can be subject to loss.
The question that many Americans today have is, how can they help safeguard their IRAs from loss. And increasingly that answer has been to turn to precious metals.
But if you go to your IRA account and look for a way to buy gold with your IRA assets, you probably won’t find anything. So how do you convert your IRA to gold?
IRAs, sometimes called individual retirement accounts or individual retirement arrangements, developed as a result of the Employee Retirement Income Security Act of 1974. And since that time they have become a powerful vehicle for retirement savings.
With subsequent retirement account legislation, IRAs are generally grouped into two major categories: Traditional IRAs and Roth IRAs.
When most people think about IRAs, they’re thinking of a Traditional IRA. A Traditional IRA uses pre-tax dollars to acquire assets, gains accrue tax-free, and distributions taken at retirement are subject to ordinary income taxes.
Roth IRAs, first developed in 1997, use post-tax dollars to acquire assets. These assets also accrue gains tax-free, and qualified distributions are made tax-free.
These IRA retirement accounts can offer a wider range of asset options than workplace-sponsored retirement plans such as 401(k) accounts. And with the ability to offer tax-deferred growth and in the case of Roth IRAs tax-free income in retirement, IRAs can be a powerful tool to give you retirement income.
But sometimes even the range of options available to IRA accounts doesn’t seem like enough, and you may be looking for more. And that’s why many people today are looking to convert their IRAs to gold through a gold IRA.
A gold IRA is an IRA account just like any other. The only difference is that instead of owning conventional financial instruments such as stocks, bonds, or shares in funds, it owns precious metals like gold.
Gold IRAs can offer many benefits. Here are three to keep in mind.
Many people like to diversify their portfolios, to spread risk across numerous assets and offer the possibility that losses in one portion of their portfolio may be offset by gains elsewhere.
Gold can help offer that diversification, as it has a reputation for gaining value when other assets are declining.
Gold’s numerous all-time high prices set during the 2020s has brought attention to the fact that the yellow metal can also offer strong asset growth. With 40 new record highs in 2024, gold has seen renewed interest from people looking for asset growth in the face of a potential economic slowdown.
Finally, gold has a long reputation as a safe haven asset during times of turmoil. Gold is often one of the first assets people turn to during periods of economic uncertainty.
Gold continues to play that role today, and both central banks and individuals are buying gold in large quantities to try to help safeguard their financial well-being.
Gold IRAs are subject to the same rules as any other IRA account. Among the rules with which you’ll want to be familiar are rules relating to account funding, asset acquisition, and asset distribution.
Like all IRA accounts, gold IRAs are not allowed to acquire collectibles. Collectibles are defined in the tax code at 26 U.S.C. 408(m)(2), and include metals and coins.
But certain coins and metals are exempt from that classification as collectibles. These include certain coins minted by the US Mint, such as the Silver and Gold American Eagle coins, as well as any gold, silver, platinum, or palladium bullion that meets the minimum fineness requirements for a futures contract.
What this means is that any gold coin or bullion with a minimum fineness of .995 (99.5% pure gold) is eligible for acquisition by a gold IRA. Goldco works with mints around the world to source IRA-eligible gold coins to make it easier for our customers to purchase IRA-eligible gold coins.
Distribution rules for gold IRAs are the same as those for other IRAs. In general, distributions taken before age 59½ are subject to a 10% penalty in addition to any tax due, and required minimum distributions (RMDs) must be taken beginning at age 73.
Roth IRAs have their own rules, and aren’t subject to RMDs. And contributions to Roth accounts can be withdrawn at any time, but earnings are subject to the 5-year holding rule.
Gold IRAs are also subject to the same contribution limits as other IRA accounts. For 2024 and 2025, the maximum amount you can contribute to IRA accounts is $7,000 per year, or $8,000 if you’re over age 50.
These contribution limits don’t apply, however, to rollover contributions. Rollovers can be made from 401(k), 403(b), TSP, IRA, and other similar retirement accounts into an IRA.
In many cases these rollovers can be made tax-free, allowing you to move funds from existing retirement accounts into an IRA to take advantage of a wider variety of potential assets to purchase.
For this reason, IRA rollovers are a very popular method of funding gold IRAs.
The gold IRA rollover process works in much the same way as any other IRA rollover. If you’ve ever done a 401(k) to IRA rollover, you’re probably at least somewhat familiar with the process already.
If you haven’t done a rollover already, the process is relatively straightforward. It starts with you setting up an IRA.
Gold IRAs aren’t available from every IRA custodian, so you’ll have to find an IRA custodian that offers gold IRAs. Goldco can work with you to find a custodian, as we work with reputable gold IRA custodians who have experience providing gold IRAs.
Then you contact your existing plan administrator or custodian to request to start a rollover. You’ll need to provide them with the amount you want to roll over, and the information for your new gold IRA account.
Your plan administrator may require certain paperwork, signatures, approvals, etc. to ensure that it’s you requesting the rollover and not some malicious actor. Depending on how long it takes to fill out the paperwork, and how the funds are transferred, expect the rollover process to take anywhere from 1-3 weeks.
Once the funds are deposited into your gold IRA, you can then use those funds to purchase IRA-eligible gold coins or gold bars. Those bars will then be deposited into the bullion depository of your choice for storage.
Goldco works with established bullion depositories so that our customers can rest assured that their gold IRA assets are properly stored and protected.
When it comes time to take a distribution, you choose what to sell and to whom. And for our customers Goldco even offers a Buyback Guarantee when you want to sell. Contact your account representative for more information about our Buyback Guarantee.
Ultimately the decision on whether to convert your IRA to gold is yours to make depending on your financial situation, your financial goals, your appetite for risk, and your timeline.
Do you think the US economy is doing just fine, or do you think we’re headed for recession?
Are you afraid to lose money to a 2008-style crisis, or do you figure that you can make up any losses in the future?
Are you looking to cash out your retirement savings in the next 5-10 years, or do you have several decades of continued saving ahead of you?
These are all questions that you might want to answer and that could factor into your decision as to whether or not to convert your IRA to gold.
If you do decide to convert your IRA to gold, working with experienced partners such as Goldco can make the process work smoothly. Goldco has helped thousands of customers convert their IRAs, 401(k)s, and similar retirement accounts into gold.
With over 6,000 5-star reviews and over $3 billion in precious metals placements, Goldco has worked hard to make itself one of the best gold companies in the country. If you want to learn more about how to convert an IRA to gold, talk to a Goldco representative today.
Free Precious Metals Guide
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Free Precious Metals Guide
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DISCLAIMER: This site is general in nature and not tailored to the specific goals of any individual. All investments carry risk. Some of those risks associated with precious metals include the following: prices may rise and fall, which means the value of your metals may go up or down over time and you may sell for more or less than you paid. Past performance does not guarantee future results. Goldco cannot guarantee, assure, or promise future market movement, prices, or profits. Even though Goldco and its representatives are precious metals specialists, we are not licensed financial advisors and do not give financial advice. Additionally, Goldco cannot provide tax or legal advice and will not advise as to the tax or legal consequences of purchasing or selling precious metals or opening a Precious Metals IRA. Individuals should consult with their investment, legal or tax professionals for such services.
