A gold IRA is an individual retirement investment account in which some percentage of its allocation is in real gold. In order to classify as a gold IRA, these accounts cannot hold paper-based gold assets alone (i.e., mining stocks or ETFs)—rather, they must include physical bullion such as gold bars or sovereign-minted coins.
Even an IRA that allocates a mere 5% to gold bullion and the remaining 95% to stocks and bonds meets the criteria of a gold IRA. Simply put, any IRA is a gold IRA as long as some share of its value consists of physical gold assets.
The Purpose of a Gold IRA
Like all IRAs, gold IRAs provide special tax benefits for their owners. Traditional gold IRAs consist of pre-tax assets for which taxation is deferred until withdrawal, whereas Roth IRAs are made up of after-tax assets which grow tax-free.
Assets held within a Roth IRA are free from long-term capital gains taxes, whereas traditional IRAs are deducted upon deposit but taxed at withdrawal.
These tax benefits especially tempt precious metals investors. This is because investors typically hold gold and silver assets long-term and can accrue a large tax liability at the time of sale. Thus, gold IRAs allow investors to contribute to their retirement nest egg on a tax-free basis while diversifying with alternative assets that can help manage risk.
Diversify your retirement with Preserve Gold’s Precious Metals IRA.
We have thoroughly vetted IRA custodians and storage facilities throughout North America to provide the best Precious Metals IRA options for all our clients. A Precious Metals IRA allows you to utilize the tax savings of a retirement account while holding physical gold, silver, platinum, and palladium in your account. A self-directed IRA allows you to take control of your retirement with the diversification features of tangible gold and silver while maintaining the benefits of tax deferment.
Eligible accounts include:
- Traditional IRA
- Roth IRA
- Traditional 401(k)
- Roth 401(k)
- Thrift Savings Plan (TSP)
- Simplified Employee Pension (SEP)
- Savings Incentive Match Plan for Employees of Small Employers (SIMPLE)
- Tax-Sheltered Annuity (TSA)