Last Updated on November 14, 2023 by Ben
We all know how diversification helps our investments dodge potential risks of loss. However, did you know that adding a portion of gold assets to your portfolio can preserve your wealth and appraise your earnings?
Keep reading this article to learn how to buy gold in an IRA and which companies are the best in the game.
At a Glance Rating:
1. Goldco: Editor’s Choice – Best and Most Trusted Gold IRA Company Overall (4.9/5)
2. American Hartford Gold: Runner up – Best Price for Bullion (4.8/5)
3. Augusta Precious Metals: Great Buyback Program (4.6/5)
4. Birch Gold Corporation: Great Staff Overall (4.5/5)
5. Red Rock Secured: Best at Home Gold IRA (4.2/5)
Top 5 Gold IRA Companies Review
You have likely heard how adding physical precious metals like gold to your portfolio is an excellent hedge against rising inflation. To help you in your gold IRA journey, you must find the perfect custodian that matches your economic capacity and financial goals.
Below are the top five companies that provide top-notch service to retirement savers.
Goldco: Editor’s Choice – Best and Most Trusted Gold IRA Company Overall (4.9/5)
Based on our experience, Goldco is one of the gold IRA custodians that offer in-depth investment courses for its clients to ensure informed decisions regarding IRA investments. All clients are eligible to access a library containing blogs, guides, e-books, and webinars.
Aside from that, Goldco’s staffers assist all customers with every processing and transaction step. It is an excellent way to ensure new investors will not get intimidated by the overwhelming process of precious metal investments.
- Fast transaction times
- Stellar customer support
- A+ rating from Better Business Bureau
- Wide selection of educational materials
- Not transparent with product and service costs
- A 25,000 USD initial deposit may still be expensive for some
American Hartford Gold: Runner up – Best Price for Bullion (4.8/5)
Whatever an American Hartford Gold client needs, it will give it all to satisfy them. Investors should shrug off their worries about their accounts because the company hotline is unrestricted and always available for 24/7 accommodation.
However, one of our orders took three to five days before getting cleared successfully. Additionally, they only ship within US territory. If you are away from the area, you may choose another custodian.
- 24/7 unrestricted company hotline
- 10,000 USD initial investment
- Offers numerous depository options
- With buyback guarantees
- Sluggish transaction times
- Not transparent with their fees
Augusta Precious Metals: Great Buyback Program (4.6/5)
Various online articles often list Augusta Precious Metals among the state’s best gold IRA companies. They operate with a reputable image in the precious metals industry, making numerous investors trust their products and services.
One thing we liked about Augusta is that they are very transparent about price listings. They break down all fees required, so clients will not get surprised. It is a trusted precious metals enterprise that caters to seasoned and novice retirement investors.
- Has A+ rating from BBB
- Provides transparent fee structure
- Empowers clients with educational materials
- Offers excellent pricing for gold and silver assets
- Restricted options for bullion
- A 50,000 USD starting investment is costly
Birch Gold Corporation: Great Staff Overall (4.5/5)
Unlike some custodians listed, Birch Gold Group excels in providing transparent client fees. They allow customers to inspect the page for information regarding account setup and other relevant details.
Further, Birch Gold Group uses a flat-rate, perfect for some investors who buy frequently and in bulk. They are also one of the custodians that offer the lowest minimum deposit in the market.
- Palladium and platinum options are available
- Accommodates various depositories across the state
- Flat-rate prices are perfect for frequent buyers
- Provides accessible information about the precious metal investments
- With a longer clearing transaction process
- The flat-rate structure is not suitable for infrequent acquisitions
Red Rock Secured: Best at Home Gold IRA (4.2/5)
Red Rock Secured has been offering Gold and Silver IRAs to investors as a means of portfolio diversification for over a decade.
They are the top Gold IRA provider on the Inc. 5000 List, and they attribute their success to their strong morals and ethics.
The company’s mission is to assist Americans in building predictable retirement income by purchasing precious metals.
Red Rock Secured is committed to enlightening its customers so that they may make educated choices. Red Rock Secured is here to assist you with your retirement plan gold and precious metals investment needs.
You can initiate contact with them by applying to their website. Once the form is received, a company representative will contact you to set up a no-cost initial appointment. Here’s a chance to talk about whether investing in gold or other precious metals makes sense in light of your long-term plans.
- Swiftly and securely deliver purchased bullion to your home or a safe depository.
- No-fee-for-life plan for eligible clients, ensuring peace of mind.
- It has a friendly and knowledgeable customer service team.
- Fee information is not readily available on the website.
- Online purchases are not available, requiring consultation with a representative.
How to Buy Gold for Your IRA
Opening a precious metals IRA is easier these days. Whether you’re planning to open a traditional or Roth IRA, here are some steps you need to follow.
Identify A Gold IRA Custodian
No one wants to pay penalty taxes, so the best route to avoid them is to find an IRS-approved custodian. Based on our research, the five firms above are among the certified and authorized to help you buy and sell precious metal acquisitions. They are linked to accredited gold mining companies out there, ensuring safety in all your transactions.
Your chosen custodian must be a financial firm that legally executes transactions on your behalf while dealing with administrative duties aligned with the IRS rules and regulations. Note that plenty of gold IRA companies provide recommendations to their clients.
However, you still have the chance to reject their suggestion. You may search for a different custodian through the Retirement Industry Trust Association (RITA) website. Just ensure that what you pick suits your budget and matches your retirement needs.
Open A Gold IRA Account
Opening a gold IRA account may seem complex, but having a company to assist you would make it easier. You should always remember those gold IRA companies do not offer investment advice — yes, despite all the marketing tactics they might suggest. They can, however, sell gold bullion, coins, and other assets.
Add Funds To Your Gold IRA
Once you have opened your self-directed IRA , you may choose whether to transfer or roll over the retirement funds from your previous account. Check out your options below.
Most investors put money in their new gold IRA from the funds in their existing retirement accounts. As per IRA rules, you may fund your gold IRA with money from 401(k) plans, 457(b) plans, Thrift Savings Plans, or another IRA.
If you want more precise instructions regarding this matter, you may ring your current administrator and tell them how much money you want to roll over.
Additionally, you have at least 60 days or two months to withdraw the funds into your new gold IRA account if you are younger than 59.5 years. You may also initiate a 10% early withdrawal tax penalty, even one day late.
You may transfer them if you are not okay with rolling over your money. Here, you must let your IRA company coordinate them through a direct institution-to-institution transfer. Given that the funds will never touch your hands, you may not worry about potential penalties or taxes.
Based on our investigations, most traditional IRAs allow clients to assemble a more diversified retirement portfolio. But bear in mind that both gold IRA transfers and rollover owners should always consider how much they desire to put into their new gold IRAs.
#4 Calculate Gold IRA Fees
Not all gold IRA custodians are transparent with their product pricing online. Finding out the necessary details might entail a few phone calls first. Below are some extra fees you should consider before pairing with a gold IRA custodian.
- Account Setup Costs
In some cases, custodians do not require their customers to pay a setup fee, especially if they make a large deposit of 30,000 USD and above. But some may require you to pay, so be mindful.
- Storage costs
IRA-eligible gold, silver, and other precious metals must be in a secure location, such as in IRS-approved depositories. Remember that owning gold in a larger amount bears a higher storage fee.
- Insurance costs
As an investor, we do not want anything worse to happen to our precious metal assets. Insurance fees can protect your assets from unfavorable scenarios, such as theft.
Rules, Regulations, And Restrictions To Buying Gold In An IRA
Basically, knowing the do’s and don’ts provided by the IRS can save you from acquiring potentially costly mistakes with your retirement portfolio.
According to the general rule, the IRS permits investors to buy eligible gold in amounts less than those authorized by Roth IRAs, traditional IRAs, and other retirement accounts.
For instance, you are only allowed to deposit up to 10 oz of gold into your self-directed gold IRA. It is an ideal avenue to safeguard your hard-earned money within your portfolio in the longer run.
How to Hold Physical Gold in Your IRA
Taking ownership of various precious metals is the best hedge against economic downturns. Aside from having physical possession of gold assets and buying stocks of mining companies, you may also invest in mutual funds that hold gold ETFs.
Per the IRS rules, unlike gold firm stocks or gold ETFs, precious metals’ individual retirement accounts allow investors to hold physical precious metals. Further, traditional IRAs have lower costs than gold IRA accounts.
The caveat is that all rare metal commodities are inside an approved depository institution, not in the investor’s house or safe deposit box. Some of the well-known depository facilities are Brink’s Global Services and Delaware Service Company.
Age And Retirement Limitations
Traditional IRAs and self-directed gold IRAs share the same limits on distribution and contributions according to age. For example, if you are less than 50, you are allowed by the IRS to contribute up to 60,000 USD. On the other hand, you may share over 7,000 USD if you are 50 and above.
Why Investors Like Gold
Our extensive research about gold investments shows that this rare metal has proven a positive track record since previous civilizations. It is also an effective and excellent retirement portfolio diversifier because it generates a positive return on investment.
Gold has consistently outperformed conventional paper assets, such as bonds and stocks. This is because gold’s worth does not move like the stock market. Gold is an ideal hedge because gold prices increase when the market decreases.
However, it might be challenging to determine when to buy gold. It is not as easy as the “buy low, sell high” method like stocks. Unlike stocks, where you can check the company earnings for signals, there is no indicator of whether gold is cheap.
Can You Buy Gold In An IRA?
Take note that individuals cannot own physical gold in regular retirement accounts. However, they may invest in alternative assets with a gold presence, such as gold ETFs and stocks. Only precious metals individual retirement accounts (IRAs) allow you to buy and sell gold bullion for retirement.
Reason to Invest in Gold
Gold investments are still vital to our modern global economy. Unlike paper currencies, gold has conserved wealth throughout thousands of generations. It is a haven for investors currently facing rising inflation and declining currency value.
Moreover, gold assets are excellent diversifying investments. In fact, their value never dropped to zero. This will provide investors peace of mind knowing their wealth is preserved and safeguarded.
Are There Rules For Buying Gold In An IRA?
The IRS has stringent rules and regulations regarding purchasing of gold in anyone’s precious metals retirement account. For instance, you should buy at least 99% purity gold bars.
Check out the specific requirements for each factor, including custodian requirements, storage fees, contribution limits, distributions, and withdrawals.
Your chosen custodian must be a trusted company, bank, or any financial entity authorized by the Internal Revenue Service (IRS) to function as a gold IRA custodian. This is a must to avoid fraud or any illegal act involving precious metal investments,
All precious metal owners must keep their acquisitions inside a credit union, bank, or trust company. Any third-party administrator not licensed should not own and hold precious metals. Further, you are not allowed by the IRS to keep your metals at home.
The updated contribution limits for various gold individual retirement accounts are as follows:
- 50 years and older traditional gold IRA holders can contribute 6,500 or 7,500 USD
- 50 years and up Roth gold IRA holders can contribute 6,500 or 7,500 USD
- SEP gold IRA holders may contribute a maximum of 66,000 USD or 25% of employee compensation
Distributions and Withdrawals
Individual retirement account (IRA) investors can delay their required minimum distributions until the year they retire. In addition, you can withdraw more than your minimum required amount. The withdrawals have taxable income except those that were considered tax-free. Just check the IRS rules regarding early withdrawals because they charge a 10% penalty.
Pros And Cons Of Buying Gold In An IRA
Here are some of the pros of purchasing gold in an individual retirement account:
Investors may enjoy tax benefits since traditional IRAs are tax-deductible. On the other hand, Roth gold IRAs are tax-free.
Knowing that gold IRAs are self-directed accounts, retirement savers have more insight regarding their investment decisions.
Gold assets are not liquid. This is why most investors likely keep their acquisitions for a longer timeframe. This buy-and-hold technique can generate positive returns.
On the contrary, here are the cons of purchasing precious metals like gold inside an individual retirement account:
No-tax Advantaged Growth
You will only feel the return on investment when you sell your precious metals for a profit. This is because gold assets do not pay dividends, unlike most traditional IRA company offers.
High Account Costs
It is not cheap to invest in precious metals. Gold IRA firms ask for more associated fees. For instance, all transactions must go through a broker or custodian first, meaning you must also pay them.
Final Thoughts – How To Buy Gold In An IRA
Aside from investing in conventional paper assets, legally owning physical gold may also be your best bet in safeguarding your retirement funds. There is no better way than choosing a gold IRA custodian like Augusta Precious Metals.
This firm provides its clients with overall customer support on how to buy gold in an IRA. Further, it is a gold company that effectively deals with clients’ concerns 24/7. It does not matter if they are newbies or seasoned investors.