All You Need To Know About IRA Allowed Precious Metals
No matter how the times change, or in which direction the winds of the global economy blow, there is always value in gold, silver, platinum, and palladium bullion products.
In fact, the value of precious metals is one of the few certainties that an investor can count on.
This is why opening a precious metals IRA account is something you need to be putting into motion in 2023.
As a self-directed IRA account holder, you will have a wider range of options available to choose from.
There is also a lot more protection from inflation when investing in precious metals instead of paper assets, such as mutual funds, the stock market, ETFs, and bonds.
However, not all gold, silver, platinum, and palladium bullion products qualify as approved precious metals for opening a precious metals IRA account.
In this article, we will look at which precious metal coins, bars, and rounds you can and cannot invest in as part of your retirement account. Read on to find out more!
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There was a time when the government had a choke-hold on precious metals IRA investing and only American Eagle gold and silver coins were deemed eligible for a gold IRA account.
However, that was before the Taxpayer Relief Act of 1997 which opened up the floodgates and allowed a wider range of physical gold bullion and other precious metals to be acceptable in a self-directed IRA.
To date, the list of gold, silver, palladium, and platinum bullion coins that you can invest in as part of your self-directed IRA is very long.
However, there are still some important IRS guidelines that need to be considered.
Requirements for Precious Metals IRAs
If you intend on investing in gold and silver bullion coins, in terms of flexibility of investment options, there has never been a better time to do it than right now.
You just need to make sure the precious metals you choose meet the following standards that the IRS requires:
All precious metals bars, coins, and rounds must come from an NYMEX, TOCOM, COMEX, LPPM, NYSE/Liffe, LBMA, LME, or ISO 9000-approved manufacturer, assayer, or refiner
The precious metals must be meeting minimum fineness requirements and be produced by an approved precious metals National Government Mint, such as the Royal Canadian Mint
In terms of purity, gold has to be 99.5% pure, platinum and palladium bullion coins and bars must be 99.95% pure, while silver coins and bars have to be at least 99.9% pure
Proof coins need to have the certificate of authenticity, be in excellent condition, and come in the complete and original mint packaging
Exact weight specifications are required for all small bullion coins
Non-proof coins need to be free from damage and be in excellent uncirculated condition
Products Acceptable in a Precious Metals IRA
The above minimum fineness requirements and the limited number of IRS-approved National Government Mint manufacturers mean you have to be very careful when selecting your gold bullion and other precious metals for a gold and silver IRA.
Consider the following IRS-approved products:
Acceptable Gold Bars and Coins
American Gold Eagle bullion coins
American Gold Buffalo uncirculated coins
American Gold Eagle proof coins
Canadian Gold Maple Leaf coins
Chinese Gold Panda coins
British Gold Britannia coins (from 2013)
Australian Kangaroo/Nugget coins
British The Queen’s Beasts (coin)
Austrian Gold Philharmonic coins
British Gold Shēngxiào Lunar Series (British coin)
Other bullion products that meet the minimum fineness requirements discussed above
Acceptable Silver Coins
American Eagle bullion and/or proof coins
Mexican Libertad bullion coins
America the Beautiful coins
Chinese Panda coins
Australian Kookaburra coins
Canadian Maple Leaf coins
British Britannia (2013 and newer)
Austrian Vienna Philharmonic coins
Other bullion products that meet the minimum fineness requirements discussed above
Also Read: IRA Approved Silver Guidelines
Acceptable Platinum Coins
American Platinum Eagle coins
Australian Platinum Koala coin
American Platinum Eagle proof coins
Isle of Man Noble coins
British The Queen’s Beasts (coin)
Canadian Platinum Maple Leaf coins
British Britannia (coin) (from 2018)
Other bullion products that meet the minimum fineness requirements discussed above
Acceptable Palladium Bullion Coins
American Palladium Eagle bullion coins
Canadian Palladium Maple Leaf coins
Other bullion products that meet the minimum fineness requirements discussed above
Unacceptable Physical Precious Metals
It is equally important, if not more so, to know which types of gold and other precious metals are deemed unacceptable and therefore should be avoided, such as the following:
Austrian Corona & Ducat
U.S. Buffalo Proof
U.S. Liberty
South African Krugerrand Gold Coins
British Britannia minted before 2013
Mexican Peso & Ounza
British Sovereign
Italian 20 Lira
Belgian 20 Franc
Hungarian 100 Korona
Chilean 100 Peso
German Mark
Columbian Peso
French 20 Franc
Dutch 10 Guilder
Important IRS Rules for Precious Metals IRAs
Besides the IRS rules on the fineness and origins of gold bars and other metals, the following also need to be considered:
IRS Approved Custodian
You can only open a gold or silver IRA through an approved self-directed IRA custodian that has been licensed to handle the precious metals on your behalf.
IRS-Approved Storage Facility
Investors are not allowed to keep their silver or gold bars and as such you must find an approved depository to handle the storage for a fee.
Limits on Contributions
While you are allowed to open multiple IRAs, the total contributions made to all of the must not exceed the annual limit set by the IRS for that particular year.
How Do I Begin the IRA Process?
To open a gold IRA, follow these simple steps:
Find a Precious Metal IRA Custodian
Find a reliable, reputable, and IRS-approved gold IRA custodian and open an account. Consider the various custodial fees and minimum deposit requirements when making your selection.
Fund Precious Metals Account
There are various ways that you can choose to fund your IRA account, but the two most common ones are:
Conduct a gold IRA rollover from an existing IRA
Transfer money directly to your IRA custodian’s account
Purchase Precious Metals
After securing your IRA funds, it’s time to buy gold bars and other assets that you wish to include in your precious metal IRAs.
Final Word
The requirements for opening a precious metals IRA may seem complicated at first, but in reality, the process is very easy. With the right custodian and financial advisor to guide you, 2023 can be the year you finally take a big step toward securing your financial future.
