This blog post may contain references to products or services from one or more of our advertisers or partners. We may receive compensation when you click on links to those products or services.
Incorporating gold and other precious metals into your portfolio is fairly easy; typically, U.S. Money Reserve has found that setting up a self-directed individual retirement account can take about 24 hours.
However, to ensure the process is completed correctly, there are a few things that may be helpful to know before you start.
How to Fund Your New Account
One major consideration when opening or funding a precious metals IRA is how you choose to fund the account.
If you don’t already have a self-directed IRA, the first step you’ll need to take is to establish one. A self-directed IRA is a type of financial account that allows you to save for retirement using a mix of assets, which can include items that may be held in a conventional IRA, such as stocks and bonds — as well as assets that are generally not held in conventional IRAs, such as gold coins and bars.
To set up a precious metals–backed self-directed IRA, you’ll need to fill out an application to create the new account. A U.S. Money Reserve Account Executive can help walk you through the process.
You can then fund the account with money taken directly from a checking or savings account — or by rolling over funds from another type of retirement account, such as a 401(k), SEP or SIMPLE IRA, or Thrift Savings Plan.
If you choose to roll over funds, there are two methods you can often use without incurring tax consequences. In a direct rollover, your plan administrator transfers the money from a preexisting account to your new IRA. Or you can choose a transfer, where funds are withdrawn from your preexisting account and sent to you as a check. As long as you deposit those funds into your new IRA account within 60 days, no penalties will apply.
Which Precious Metals Items to Include
Once you’ve funded your self-directed IRA, your next major consideration will likely be deciding which precious metals assets to hold in your account. This decision may be based on factors such as the products’ market price and your overall retirement savings goals.
With a self-directed IRA, you can take an active role in preparing for your retirement. Your assets are allocated as you direct, while the custodian of the account serves as its administrator and is responsible for buying and holding precious metals on your behalf. You can add physical gold, silver, or other assets at any time using existing funds or sell assets held within your account to fund the purchase of additional precious metals or other assets.
While a self-directed IRA may greatly increase your choice of retirement assets, some qualifications must still be met. For example, only certain precious metals and precious metals products can be held in IRAs. To be eligible, coins, bars, and rounds must be produced by a national government, national mint, or an accredited refiner, assayer, or manufacturer.
Generally speaking, items must also have a minimum purity level to be eligible for inclusion in a self-directed IRA, according to IRS regulations. With few exceptions, gold items must have a fineness of at least 0.995, and silver items must have a fineness of 0.999 or greater.
Gold and Silver American Eagle bullion and proof coins are two examples of precious metals assets that are eligible for inclusion in an IRA.
Portfolio holders may be drawn to either type of coin depending on their individual interests and savings plans. Bullion and proof coins sometimes have the same design but are produced with different finishes. While bullion coins feature a standard finish, proof coins are produced using a specialized minting process, which involves loading highly polished planchets, or blanks, into a coin press and then striking them multiple times with dies to produce a high level of detail.
Proof coins also tend to be produced in smaller quantities, which can influence their price. Bullion prices are often contingent on the weight of their precious metals content.
Relatively low amounts of Gold American Eagle Proof Coins have been released since their introduction in 1986; in 1998, for example, the U.S. Mint only produced 26,000. Conversely, nearly 1.5 million American Gold Eagle Bullion Coins were produced that year.
Where Your Assets Will Be Kept
The third consideration many Americans make when opening a precious metals IRA concerns storage of their precious metals assets.
The IRS requires the physical precious metals assets you purchase for inclusion in a self-directed IRA to be stored outside of your home. The assets must be sent to a recognized financial institution or IRS-approved depository, such as AM Global Logistics, U.S. Money Reserve’s preferred depository.
Precious metals assets must also be stored in a way that meets specific size, recordkeeping, and other stipulations. They are also monitored by the federal government, which helps ensure that your precious metals will be secure. You still maintain control over your assets, even though the items are stored at an external location.
If you’re considering adding physical precious metals assets to your retirement portfolio, U.S. Money Reserve can provide assistance with establishing and funding a self-directed IRA and purchasing government-issued gold, silver, platinum, and palladium.
Founded more than 20 years ago, U.S. Money Reserve, one of the country’s largest precious metals distributors, has completed $2.5 billion in transactions and worked with more than 785,000 portfolio owners to establish diversification plans that specifically address their individual goals.
In addition to providing ample online resources — including reports, precious metals price charts, and industry news updates — to help keep portfolio holders informed, U.S. Money Reserve also offers a unique buyback commitment that allows customers to return qualifying coin purchases within 30 days or potentially sell them back to U.S. Money Reserve at a later date.
To find out more about precious metals–backed IRAs — and U.S. Money Reserve’s available inventory of certified coins and government-issued bullion, bars, and other items — you can either visit its website or call 1-888-356-7074 to speak with a U.S. Money Reserve Account Executive about your current and future portfolio plans.
Become an Insider
Editorial Disclaimer: The editorial content on this page is not provided by any of the companies mentioned and has not been endorsed by any of these entities. Opinions expressed here are author's alone
The content of this website is for informational purposes only and does not represent investment advice, or an offer or solicitation to buy or sell any security, investment, or product. Investors are encouraged to do their own due diligence, and, if necessary, consult professional advising before making any investment decisions. Investing involves a high degree of risk, and financial losses may occur.
