What You Should Know Before Investing With A Gold IRA Company

Welcome to this page, which is dedicated to providing you with relevant and up-to-date information concerning precious metal investment by way of a gold IRA, and the gold ira companies that provide the service.

What You Will Find On This Page

We have compiled an extensive list of information for you to use as support for your investigating the best options when it comes to rolling over your IRA or 401(k) and finding an appropriate gold ira company to help you set your account up for your retirement. We do make recommendations of precious metals companies we suggest are the best gold IRA companies to provide you with an ira rollover. However, we simply make recommendations, and we do advise you to research companies further before making your final decision.

What You Should Know Before Investing With A Gold IRA Company

If you are seriously considering converting your IRA or 401k into a gold account (investment options are more limited in a 401k account than within a precious metal one*) then there are a number of things to consider when talking to any of these companies. There are small details to consider in gold IRAs that are lacking in both traditional and Roth IRAs. As much as the gold IRA is a self-directed IRA, the Internal Revenue Services (IRS) has established specific procedures regulating gold IRAs.

1. Options For Gold Ira Investing

Among other features of investing in gold IRA, an investor must understand what they can and cannot invest in the precious metals IRA.

Apart from gold, other precious metals that can be invested include silver, platinum, and palladium. Each precious metal has an approved list of bullion bars and coins from Internal Revenue Services (IRS) that qualifies them as precious metals investment assets.

Since we are talking about gold in this guide, the Internal Revenue Services (IRS) standards require that the gold must attain a purity grade of 0.995 or more for consideration in an IRA plan.

Simultaneously, the Internal Revenue Services (IRS) prohibits collectibles in gold or precious metal IRAs.

Collectibles in the precious metals IRAs are popular and are substantial private collections or other forms of high-level investment plans. However, they are unable to meet Internal Revenue Services (IRS) purity requirements.

As an investor, you will find the unapproved list of items quite important.

You can go to this page to find a comprehensive list of what metals can be added to your IRA, along with the purity level required for such investment.

2. Gold IRA Fees

You will see from our recommendations on our gold ira companies page that depending on which company you chose, the fees vary. Depending on which company you go with (the ones we have recommended or another) some charge a fixed fee while others charge either fixed and percentage or the fees vary depending on your investment. One thing to consider with various fees is the more your invest, the more you will have to pay. Now because some companies have varying fee structures, don’t let that put you off from investing for your future. The return you get from investing, far outways the investment in fees.

There are three areas of fees that need clarification from your provider so that you know what you are paying. The areas relate to the three sections of your account; Provider, Custodian, and Depository.

What You Will Need To Get Clarified With Your Chosen Provider Concerning Fees
  • The fee for opening an account. A gold IRA is a tax deferring account which means it can only be opened by an IRS-approved custodian. Each custodian charges differing fees, so if the provider you chose recommends a number of different custodians, you will need to check with each one. Normally you should expect to pay around $50 to open a new account.
  • Fee for carrying out your transaction. When buying your metals to be added to your account, or if you invest in more gold at any time, you will need to pay a transaction fee. This fee will be applicable if you choose to sell any of your investments too. This also varies from custodian to custodian, but expect to pay in the region of $40 per transaction.
  • Fee for maintaining your account. This is another varying fee depending on the custodian, but because of the importance of maintaining your account, a large number of custodians put this fee on their website. The range of the fee varies but can be from $50 to $250 plus a year, depending on the custodian.
  • Fee for fund transfer. When you make your investment, the transfer into your account is done via wire transfer and this generates a fee. Each transfer is around $25.
  • Fee For Storage. We mention below that when purchasing precious metals, its storage is vital otherwise you will be liable to pay tax. Once your purchase is complete, you’ll want to store it in a depository. The fee for depository storage varies from the depository to depository, also how you store your investment too can affect the yearly fee. You may want to have your metal segregated from others, this will increase your fee. You should expect to pay between 0.5-1% of the value of your assets by way of a depository annual fee, plus any extras you choose, such as segregation.

3. Is Your Custodian Licensed by the IRS?

A custodian must be properly licensed by the Internal Revenue Service. There is a register of eligible custodians and whichever company you choose, they can confirm that the custodian they use is on that list.

What you also need to be aware of, if you are not already, is that a custodian is not allowed to offer actual financial advice nor can they sell you any investment products. Their role is to carry out the purchase and administration of your gold ira investment. In other words, they simply act on your behalf, they don’t advise you, that is the job of your provider or financial advisor.

4.Make Sure Your Gold IRA Company Uses A Quality Depository

When purchasing gold silver, or platinum for your account, checking that the correct storage is being used by the company you choose is vital. Because the government sees these investments as cash since they can be liquidated easily anywhere in the world, you will be liable for tax on your bullion or coins if you hold them at home. To appreciate the tax benefits the metal you purchase for your rollover /retirement account must be held by a private depository of your choice in the US. Not only that but any good depository will allow you to visit any time you please.

A depository as you know is a secure building that is managed and protected 24 hours a day, 7 days a week. There are many depositories located all around the US, so when setting up your rollover, you should be allowed to pick the nearest one to where you live. Furthermore, you can determine the quality of the depository by the quality of their insurance and legal separation.

Depository Insurance & Legal Separation.

We mention in the section on fees that you can if you so choose have your metals segregated from others, but that is not what we mean here by legal separation. You want to make sure that the depository you use is insured to a high value (not all are) but also that they DO NOT take ownership of your assets in any way while they are being stored. The reason why this is important is that should anyone take legal action against the depository, your assets will be protected and not levied against the claim if they have not taken ownership.

Rules & Regulations For Gold Ira

The Internal Revenues Services is legally mandated to establish rules that regulate how all IRAs, including gold IRAs, are set up and held by investors.
The following section is a quick overview of how critical rules and regulations determine the administrative, storage, and general limitations for gold IRAs. These are points that your gold IRA company will know and speak to you further when opening your account with them.

Administrator Rules

Any investor who wants to invest in a gold IRA must open an account with an administrator duly approved by the Internal Revenue Services (IRS) to handle precious metals investments.
The account belongs to an individual investor/retiree who directs orders. Nonetheless, Internal Revenue Services (IRS) rules require that an administrator, in the form of a broker or a custodian, executes orders on behalf of the investor.

Storage Rules

Gold and precious metals of an IRA have to be stored in vault facilities as approved by the Internal Revenue Services (IRS).
The Internal Revenue Services (IRS) considers gold in actual possession with an investor as a distribution and, is, therefore, an investment that is subject to taxes and penalties.

Tax Regulations

Distributions, referring to taking actual possession of gold, are subject to income tax assessment during withdrawal.
An investor gets a 10% levy for early distribution unless the reason for taking possession of the gold is within predetermined exclusion which we will discuss later in this article. Profits realized are also subject to capital gains tax upon withdrawal.

Rules On Contribution Limits

The contribution limit for gold IRA investors has a capped limit of $6,000 per year. The contribution limit rises to $7,000 per year when the investor attains the age of 50 years.
The investment can make the investor’s contribution from a rollover or a purchase executed by the broker/administrator.

Age Limit Rules

Investors can only access their gold IRA distribution upon attainment of 59.5 years; noteworthy, it is not an obligation for a gold IRA investor to take a distribution when they get to that age.
However, the investor is obligated to take a distribution at the beginning of seventy years.
The investment can make the investor’s contribution from a rollover or a purchase executed by the broker/administrator.

Types Of Approved Precious Metal

As we had earlier mentioned, there is a limit to the types of precious metals incorporated in a self-directed IRA.
According to the IRS, gold for self-directed IRA must achieve a purity level of 0.995 or twenty-four carats – a purity level only found in a limited number of commodities.
However, the investor is obligated to take a distribution at the beginning of seventy years.
The investment can make the investor’s contribution from a rollover or a purchase executed by the broker/administrator.

Limitations For Early Withdrawal

Not all withdrawals get a 10% penalty for early withdrawal. The following are the withdrawals exempted from penalties:
• The IRA owner is physically disabled/admitted to a hospital and needs money to settle medical bills.
• The IRA owner passes on, and the IRA owner’s appointed beneficiary needs access to the funds.
• The IRA owner loses his employment and needs access to the IRA funds.
• The IRA owner needs to buy a new, first-time residential house (can utilize a maximum of $10,000) or wants to fund education for a family member.



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