Why Is It Good to Hold Gold Coins in an IRA?

There are a number of reasons you'll want to consider investing in gold, and particularly gold coins, for your IRA. Investing some of your money in gold allows you to diversify your portfolio. This means that all of your money isn't invested in stocks and bonds, which means you'll be better protected against stock market volatility.

Gold has historically been a good investment since it is so highly coveted around the world. Its scarcity, coupled with this higher demand, frequently causes the price of gold to increase. This could mean big payoffs for your IRA when you're ready to retire.

When you invest in gold, you'll also be protecting yourself against inflation. As prices increase, the value of the dollar decreases. Since the value of gold is not tied to the price of the US dollar, you can easily make more money by investing in gold than in the stock market.

When you are ready to retire and want to liquidate the gold in your retirement account, the process should be quick and straightforward. Since gold is in such high demand, you'll easily be able to find a buyer and receive cash for your gold. Many gold investment companies also offer you the option to sell your gold coins or have the physical gold sent back to you when you are old enough to begin taking disbursements from your account.

Investing in gold coins can be a particularly good investment. Unlike gold bars which are valued based on their weight in gold, gold coins could potentially be worth more than their weight in gold. This is true for coins that are rare or more popular. So, if the coins you add to your IRA today are in greater demand when you are ready to retire, you could make a pretty penny off of your investment. You can also consider passing the physical gold onto your children or grandchildren to set them up for financial success in their future.

What Are the Requirements for IRA Approved Gold Coins?

Gold IRAs are a form of a Self-Directed IRA. This type of IRA was first allowed starting in 1975. Self-Directed IRAs allow individuals to hold assets other than the traditional stocks and bonds in a retirement account.

However, you can't add just any gold or gold coins to a Self-Directed IRA. The IRS created a set of regulations for Gold IRAs.

First, in order for gold coins to be held in an IRA, they must have a minimum purity level of 99.5%. Coins that do not meet this requirement will not be eligible for a Gold IRA.

The only coin that is allowed in a Gold IRA that does not meet the 99.5% purity rule is the Gold American Eagle Bullion Coin. Even with their purity level of 91.67%, these gold coins may still be held in a Gold IRA.

Another important criterion for coins to be held in a Gold IRA is that they must be produced by a national government's mint or by an accredited manufacturer.

Additionally, coins that have been graded by the Professional Coin Grading Service (PCGS), Numismatic Guaranty Corporation (NGC), or another certification group are classified as a collectible by the IRS. As collectibles, graded coins are also not allowed in a Gold IRA.

Another essential rule for adding coins to a Gold IRA is that they must be purchased through a custodian. This means that if you already own gold coins that meet all the requirements above, you still won't be able to add them to an IRA. The IRA custodian you work with can help you move the funds (either from your bank account or from an existing retirement account that is eligible for a rollover), and then they can help you use that money to add gold coins to your IRA.

It is also important to note that the gold coins you add to an IRA are required to be stored in an IRS-approved depository. There are very few exceptions to this, and in nearly all cases you'll face large penalties if you store your IRA gold at home. Once you reach the age of 59 ½ years old, you'll become eligible to begin taking disbursements from your account.

At this time, you'll be able to choose whether you would prefer to receive the physical metals in your account, or if you would prefer to have the coins liquidated to receive cash.

IRA Approved Gold Coins

Below are many of the gold coins that meet the requirements laid out by the IRS. You can add these gold coins to a Gold or Precious Metals IRA. This is just a sampling of the options that are out there. Depending on which gold investment company you choose to work with, you may find that other gold coins are available.

Adding Gold Coins to an IRA

If you would like to add gold coins to an IRA, there are two main options to choose from.

First, you can choose to open a new Gold IRA. Also referred to as a Precious Metals IRA, this allows you to hold gold (and other precious metals) in an IRA account. Gold IRAs are one type of Self-Directed IRAs.

You can work with a gold investment company, and they'll be able to help you set up your new Gold IRA and transfer the funds from your bank to fund it. Once the account is funded, you can choose the various gold coins you'd like to hold in it.

The other option you can choose is to roll over an existing retirement plan into a Gold IRA. Some account types are not eligible, so you'll want to work with a representative from the gold investment company you're working with to determine whether your existing account can be rolled over into a new Gold IRA.

If it is determined that your account is eligible, you'll work with an IRA custodian to ensure the funds are transferred correctly according to IRS regulations. Once the transfer process is complete, work with the representative to add the gold coins you want to invest in to your account.

Once you have either set up your new Gold IRA or rolled over an existing account, you'll be able to make yearly contributions. If you are under the age of 50, up to $6,000 can be contributed each year without facing any IRS penalties. For individuals over the age of 50, up to $7,000 can be contributed yearly.

If you have multiple IRA accounts, $6,000 (or $7,000) is the total maximum amount you can contribute between plans. This means that you could contribute $3,000 to your traditional IRA and $3,000 to your Gold IRA, $1,000 to your traditional IRA and $5,000 to your Gold IRA, or some other combination as long as the total amount you contribute between the two (or more) accounts does not exceed $3,000.

Investing in Gold Coins for an IRA

Opening an IRA is a great way to help save and prepare for retirement. When the reach retirement age, many Americans find that they don't have enough money saved to be able to stop working. Preparing now by opening a Gold IRA can help make sure you aren't one of these individuals.

Now that you've read through the information we shared about IRA approved gold coins, which coins would you like to add to a Gold IRA? Are you ready to start investing in gold coins today?