Gold IRA Basics: A Beginner's Guide

What is a Precious Metals IRA?

A Precious Metals IRA is a type of Self-Directed Individual Retirement Account (SDIRA). Unlike standard IRAs that hold paper assets like stocks and bonds, a Precious Metals IRA allows you to hold physical, tangible assets—specifically, gold, silver, platinum, or palladium—that meet purity standards set by the IRS. It operates under the same tax rules and contribution limits as a conventional IRA, but the assets inside are real metal, stored securely on your behalf.

The 5-Step Process to Opening a Gold IRA

Reputable companies like Augusta Precious Metals handle most of the paperwork with you, making the process simple. Here is the typical process:

1. Choose Your Company: Select a trusted precious metals dealer to act as your liaison.
2. Open Your SDIRA Account: Your dealer helps you set up an account with an IRS-approved custodian (e.g., Equity Trust).
3. Fund Your Account: Move funds from an existing 401(k), IRA, or other retirement plan via a tax-free rollover or transfer.
4. Select Your Metals: Choose the IRA-eligible gold and silver for your portfolio from options your dealer provides.
5. Store Your Metals: Your chosen metals are shipped fully insured to a secure, IRS-approved depository for storage.

Key IRS Rules You MUST Know

• No Home Storage: You cannot legally store your IRA metals at home. Doing so is considered a distribution by the IRS and will trigger taxes and penalties. The metals must be held in an approved depository.
• Purity Standards: Your metals must meet minimum purity levels: 99.5% for gold and 99.9% for silver. Reputable companies only offer IRA-eligible products.
• Distributions: Required Minimum Distributions (RMDs) apply to Traditional Gold IRAs starting at age 73, just like with a standard IRA.

Potential Benefits & Important Considerations

If you have decided to add physical precious metals to your retirement assets, it's important to understand the landscape.