Can You Have Precious Metals In An IRA?
The IRS allows precious metals to be held in an IRA, with some restrictions. They can’t have any collectible value and must meet certain purity requirements. The following are some of the precious metal coins that are allowable investments in an IRA:
Gold Coins
- American Gold Eagles (bullion or proof)
- American Gold Buffalo (bullion)
- Canadian Gold Maple Leafs (bullion)
- Australian Gold Kangaroos (bullion)
- Australian Lunar New Year (bullion)
- Austrian Gold Philharmonic (bullion)
- British Gold Britannia (bullion, 2013-present)
Other gold coins issued by a State of a purity not less than .995 fine (99.5% pure)
The 22k (.917 fine) American Gold Eagle is the only gold coin eligible for inclusion in an IRA with a purity of less than 99.5%, as it is the official gold coin of the United States.
Silver Coins
- American Silver Eagles (bullion or proof)
- American “America the Beautiful” (bullion or proof)
- Canadian Silver Maple Leaf (bullion)
- Australian Silver Koala (bullion)
- Australian Silver Kookaburra (bullion)
- Australian Silver Kangaroo (bullion)
- Austrian Silver Philharmonic (bullion)
Other silver bullion coins issued by a State of a purity not less than .999 fine (99.9% purity)
Platinum Coins
- American Platinum Eagle (bullion or proof)
- Canadian Platinum Maple Leaf (bullion)
- Australian Platinum Kangaroo (bullion)
- Austrian Platinum Philharmonic (bullion)
- British Platinum Britannia (bullion)
Other platinum bullion coins issued by a State of a purity not less than .9995 fine (99.95% purity.)
Palladium Coins
- American Palladium Eagle (bullion or proof)
- Canadian Palladium Maple Leaf (bullion)
Other palladium bullion coins issued by a State of a purity not less than .9995 fine (99.95% purity.)
Proof coins must still be in their original government packaging (OGP) to qualify for inclusion in a precious metals IRA.
Precious Metal Bars
Precious metal bullion bars are also eligible for inclusion in an IRA, provided they meet the same standard as coins. There are also size restrictions on bars, depending on the metal:
- Gold bullion bars weighing less than 100 oz,
- Silver bullion bars weighing less than 1000 oz,
- Platinum bullion bars weighing less than 50 oz,, and
- Palladium bullion bars weighing less than 100 oz
Precious metal bars may be included in a self-directed IRA as long as the refiner or mint is accredited/certified by NYMEX, COMEX, NYSE/Liffe, LME, LBMA, LPPM, TOCOM, ISO 9000, or is a national government mint, and meet minimum fineness requirements.
Gold IRAs
The IRS requires investors to set up a self-directed IRA to include physical precious metals in their retirement plans. Precious metals IRAs require an accredited custodian to handle the purchase and storage of precious metals for the investor.
Precious metals that the investor already owns are not eligible for inclusion in a gold IRA.
Instead, the investor picks among IRS-approved precious metals options and then sends the custodian an order informing them what and where to buy, including a payment covering the purchase. The precious metals are shipped directly to the custodian which stores them in an insured vault.
Home Storage Gold IRAs
Claims that you can store gold in your IRA at home are misinformed at best and a scam at worst. Complying with IRS regulations is exceedingly difficult and far more expensive than the fees an IRS-approved custodian would charge.
The History of Precious Metals IRAs
Before 1986, the IRS considered all coins collectibles and prohibited their inclusion in an IRA. Even bullion coins valued for their metal content alone were considered collectibles.
A change in IRS regulations in 1986 authorized precious metals IRAs, but only as traditional IRAs. This was amended in 2003 to allow investors to choose to configure their precious metals IRAs as Roth IRAs, allowing investors to tailor their precious metal investments to match their retirement goals.
Caveats Abou Precious Metals IRAs
Physical precious metals are an alternative investment with unique challenges. As such, it is recommended that only experienced investors consider a precious metals IRA. For example, Required Minimum Distributions will be in the form of individual pieces of precious metals from your account. One way to avoid taking excess minimum disbursements would be to purchase fractional precious metals, but the premiums on small coins and bars are higher per ounce than buying 1 oz pieces or larger.
Precious metal IRAs have notably higher expenses than regular IRAs, making precious metals ETFs a cheaper and simpler choice for the average investor. Master Trader Gareth Soloway’s Smart Money: Commodities & Miners trade analysis alerts provide active traders with real-time alerts and regular discussions on the technical signals for trading ETFs and single stocks of precious metal companies, as well as covering oil, and other commodities.
