Gold IRA FAQs

Gold is a non-correlated asset, meaning its price movements aren’t generally influenced by stocks and bonds. Historically, gold prices tend to move opposite to paper assets, which can help make gold an option for diversifying your savings and potentially helping protect retirement funds from market volatility.

Historically, gold has been viewed as a hedge against inflation because it retains value during inflationary periods. Gold has consistently outperformed the U.S. dollar over the last century.

Gold is often viewed as a safe haven asset because it tends to hold value during economic uncertainty and market volatility.

With a traditional Gold IRA, you can make contributions with pre-tax dollars, and your account is tax-deferred. This means you won’t have to pay taxes on your deductible contributions and earnings until you withdraw the money from your account at retirement.

With a Roth Gold IRA, you make contributions with after-tax dollars. This means you generally don’t have to pay taxes on any qualified distributions when you withdraw the money from your account at retirement.

Simplified Employee Pension (SEP) Gold IRAs are traditional IRAs specifically designed for small business owners and the self-employed. These accounts have the same tax benefits as traditional IRAs.

The key difference with SEP Gold IRAs is that they allow you to make much larger contributions than traditional or Roth IRAs. For 2024, the contribution limit for a SEP IRA is generally the lesser of $69,000 or 25% of the individual’s annual earnings, which is significantly higher than the limit for a traditional or Roth IRA.

These features can make SEP Gold IRAs an option for anyone who’s self-employed or owns a small business.

IRS-approved coins eligible for Gold IRAs are:
American Eagle gold coin
American Eagle silver coin
American Eagle platinum coin
Maple Leaf palladium coin
Additionally, there are 10 other approved one-ounce options, including:
Gold Mexican Libertad
Gold Chinese Panda
Gold Britannia
Gold Vienna Philharmonic
Gold Canadian Maple Leaf
Gold Australian Kangaroo
Gold American Buffalo
Proof Gold American Eagle
Gold Australian Swan
Gold Somalia African Elephant

Gold is a non-correlated asset, meaning its price movements are not generally influenced by other asset classes like stocks and bonds. Historically, gold prices tend to move in the opposite direction from paper assets, which can help make gold an option for diversifying your assets and potentially helping protect retirement savings from market volatility.

Historically, gold has been seen as a hedge against inflation because it retains some value during periods of inflation. Bolstering this historical view, gold has consistently outperformed the U.S. dollar over the last century.

Gold is often seen as a safe haven asset because it tends to hold some value during economic uncertainty and market volatility.

Gold IRAs must be established by an IRS-approved custodian. Custodians are financial institutions or firms that the government has approved to hold precious metals on behalf of their clients. Not all gold IRA companies offer this service

It is helpful to note that your custodian does not typically recommend dealers from which to purchase metals for your IRA. They may, in some cases, share their list of contacts, but it is up to you to select dealers.

On the other hand, some dealers might recommend custodians for you to work with, but you are free to choose one based on your own research and preferences.

When you open a Gold IRA, you will need to complete some paperwork. This process includes an application, documentation of your identity, and Social Security number. You will also need to fund your account with a check or wire transfer.

One of the benefits of a Gold IRA is that your account generally grows tax-deferred. However, you will still need to report those earnings when you file your taxes. The IRS requires all taxpayers to report any gains or losses from their investments on their tax returns. A Roth Gold IRA is an exception as you pay into it using after-tax dollars, so its income generally is not taxable.

Another important consideration is storage for your gold. Because gold is valuable and prone to theft, it cannot be stored in your home. Instead, your custodian will keep it in a secure, insured, IRS-approved vault or depository. You will need to pay storage fees to your custodian, but these fees are typically much lower than the cost of insuring and storing gold yourself—and, as we mentioned above, it’s generally tax deductible.

When you reach the age of 73, you are subject to mandatory withdrawals from Traditional IRAs. Required Minimum Distributions (RMDs) are calculated based on your life expectancy and may increase your taxable income in the year of withdrawal.

Your first RMD is due on April 1, the year after you reach the appropriate age. As stated above, if you withdraw funds before the age of 59-1/2, you will pay income tax on that amount plus a 10% early withdrawal penalty. There are exceptions, however; if you are experiencing medical hardship, have lost a job, or are facing other circumstances, you may be eligible for a waiver of
these fees.

Rosland offers a calculator to help you calculate your RMD for a Traditional IRA. Note that the same rules apply to Gold IRAs.

There are certain considerations for Roth Gold IRA distributions based on your age at the time of withdrawal and how long you’ve held the Roth IRA.

If you are 59-1/2 years old or younger and your account is less than five years old, your withdrawal will be subject to taxes and penalties. You can, however, avoid penalties if you are using the funds for specific reasons, such as a first-time home purchase, education expenses, or if you become disabled or pass away.

If you are 59-1/2 or older, penalties may be incurred if you’ve held the account for less than five years, but you will generally not pay taxes on the withdrawal.