Ask the Gold Guru: Precious Metals IRA Questions

Dear Birch Gold,

1.Can a Precious Metals IRA hold bars, rounds and/or “junk coins?” What does and does not qualify?

2.Can a Precious Metals IRA be a Roth IRA? If precious metals prices do skyrocket, I prefer to pay tax on current price versus future price.

3.Can precious metals I already own be put in a Precious Metals IRA?

4.Can I physically store Precious Metals IRA metals so I know I have a high chance of putting the physical in my hands when needed?

Regards,

John M.

Hi John, thank you for these great questions, we’d be happy help.

1) Can a Precious Metals IRA hold bars, rounds and/or “junk coins?” What does and does not qualify?

Select bars and rounds are approved for a Precious Metals IRA when 1) they have been produced by an approved refiner or government mint, and 2) they meet the eligibility criteria set by the Internal Revenue Service. The minimum fineness required for such bars and rounds is: .995 for gold, .999 for silver, .9995 for platinum and palladium.

The term “junk coins” is often used to describe coins that are collected solely for their precious metals value, but do not meet the minimum purity requirements to be eligible for an IRA.

Apart from those bars or rounds that meet the above criteria, here are some of the most popular IRA-approved coins: The Gold and Silver American Eagle (Bullion and Proof), the Gold American Buffalo, the Gold and Silver Canadian Maple Leaf, the Gold and Silver Austrian Philharmonic, the Gold Australian Nugget, the Gold Australian Kangaroo, the Silver Australian Kookaburra and the Silver Mexican Libertad. A few of these coins also come in Platinum and/or Palladium versions and may also be eligible to be placed in your IRA.

2) Can a Precious Metals IRA be a Roth IRA? If precious metals prices do skyrocket, I prefer to pay tax on current price versus future price.

Absolutely. When opening your Precious Metals IRA, you’ll have the option of setting it up as a Roth account (versus a Traditional IRA), which will allow you to take tax-free withdrawals in retirement. You may want to consult a tax professional to determine if a Roth IRA is right for your situation.

3) Can precious metals I already own be put in a Precious Metals IRA?

If you currently have metals in another Precious Metals IRA, you may roll those into your new account. However, any metals that you physically possess or that are held outside the management of your custodian are unfortunately not eligible to be contributed to a Precious Metals IRA.

4) Can I physically store Precious Metals IRA metals so I know I have a high chance of putting the physical in my hands when needed?

A Precious Metals IRA must be managed by an approved custodian and the metals must be stored under their management (typically in a precious metals depository). Thus, you cannot keep your metals for physical possession or placement in your own safe deposit box until you begin taking withdrawals from your IRA. Private citizens do have the option of becoming their own custodian by creating an LLC, however the setup of such an enterprise can be an onerous process. If you are interested in pursuing this option, it is recommended that you speak with an attorney to learn about the pros and cons of doing so.

John, thank you again, we hope this has helped clarify your options. If you have any more questions, please feel free to give us a call at (800) 355-2116.

Do you have a question about how to invest in precious metals? Want to know more about how to set up a Precious Metals IRA, or what types of coins are available to you? Send us an email to goldguru@www.birchgold.com and we may answer it in a future post on our site.