How Gold IRAs Work

• Gold is not a traditional asset like stocks, bonds, or mutual funds.
• It does not provide income or dividends, nor is it traded on a centralized exchange.
• It is not debt instruments like mortgages or deeds of trust.
• Gold is often viewed as the "antidote" to inflation.
• Gold's value can be seen throughout history.
• Gold was the currency of the ancient world and continues to be used for trading in countries around the world.

Gold is not a traditional asset like stocks, bonds, or mutual funds. It does not provide income or dividends, nor is it traded on a centralized exchange. It is not debt instruments like mortgages or deeds of trust. Instead, gold is considered an asset of last resort and its value has been praised by many economists and historians.
Gold is often viewed as the "antidote" to inflation. The yellow metal's value has been praised by historians and economists as one of the few assets that retains its value when inflation rises.
Gold's value can be seen throughout history. Gold was the currency of the ancient world and continues to be used for trading in countries around the world.

Tax-Free Retirement Accounts

The Internal Revenue Service (IRS) classifies three different types of retirement accounts:
Traditional IRA

Roth IRA

Simplified Employee Pension (SEP) IRA

All three account types are tax-advantaged, so they defer taxes while allowing for tax-free withdrawals. Contributions to an IRA are made with after-tax dollars. The tax-deferred growth allows the money to grow until retirement, when it can be withdrawn tax-free.

Gold IRAs

A Gold IRA is an IRA that invests in physical gold. Gold IRAs are similar to standard IRAs, but differ because gold is included as an investment.
Gold IRAs are self-directed, meaning the investment decision is yours. Gold IRAs can be opened with any broker that accepts IRAs.

Types of Gold IRAs

Traditional Gold IRAs
These accounts are made from a self-directed Individual Retirement Account (IRA). They must be held in an eligible custodian.

Self-Directed Roth IRAs
If an individual is younger than 70 1/2, he or she can open a Roth IRA and invest in precious metals.

Inherited Gold IRAs
An inherited IRA can be opened by a beneficiary who inherits a self-directed IRA or an IRA with a custodian. These accounts are also allowed to be invested in precious metals.

Gold IRA Contribution Rules
Like traditional IRAs and Roth IRAs, gold IRA contributions are made on a tax-advantaged basis.

Gold IRA Distribution Rules
Gold IRA rules state that all assets must be liquidated before your 70 1/2th birthday. Your gold can be sold or transferred, and your IRA custodian will then liquidate your precious metals holdings.

Physical Gold IRAs

With physical gold, investors will own actual gold bullion, gold coins, or bars. They will need to store the gold in a depository approved by the IRS, either at the depository's location or with a third party.
Gold-backed IRAs
Gold-backed IRAs hold gold in a vault, but the paper ownership is in the name of the trustee or custodian. Because ownership is in the name of the trustee, investors pay no storage fees, because the gold is already stored in a vault.

Gold-backed IRAs allow investors to invest in gold without purchasing physical bullion, coins, or bars. The gold is still in their possession, but the gold is held in a vault, rather than stored at their home or office.

Gold-backed IRAs allow the investor to invest in physical gold without having to store it in his or her home or office. However, investors should understand that gold-backed IRAs still allow for physical gold purchases.

Gold-backed IRAs allow investors to participate in gold without purchasing physical bullion.

Gold-backed IRAs also allow for physical gold purchases.