Did You Know You Could Invest Gold Coins Into an IRA?

invest gold coins in ira

[Hey guys! Have an interesting guest article for you today in partnership with the folks at LearCapital.com – a site that sells gold coins and other precious metals.  They reached out a few weeks ago about sponsoring an article here, and having always been curious about how one invests gold coins INSIDE AN IRA I asked if they knew anything about it. Turns out they do, and today they share the hows and whys around it, as well as the stuff to watch out for. If you’re a big personal finance nerd like I am, you’ll enjoy this article even more! :)]

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Is it possible to put gold coins into an IRA? Yes. It’s possible to buy physical gold coins for an Individual Retirement Account (IRA) as well as a 401(k). The IRS allows various types of precious metals in these accounts, including silver and palladium as well.

It’s also possible to do a rollover from an existing retirement plan, such as a 401(k), 401(a), 403(b), 457, and even Thrift Savings Plans (TSPs).

Why Adding Gold to Your Portfolio
Could Be Helpful

It’s important to note that putting gold – in any form – in a retirement plan is not a form of “investment.” It’s a hedge against potential losses due to currency fluctuations in the future. In a sense, purchasing gold coins in 2017 essentially means that you are buying currency to barter for goods in case the major sovereign currency crashes in the near future. Gold does not increase in value like currency investments. Rather, the value of gold rises and decreases inversely in proportion with the value of major world currencies.

While it may not make much sense in the short term, gold hedges are important when you are saving for retirement for 20 or 30 years. Think about what happened with Brexit recently. Britons who have been saving for decades for retirement found overnight that a good percentage of their wealth was gone when the pound fell after Brexit. Had these Britons protected their retirement plans with gold, the losses would have been contained. The same logic follows for your retirement plan as well. It’s difficult to predict what the future will bring economically. So, you must have the necessary safeguards to protect your wealth, including having gold in long-term savings plans.

[Editor’s Note: While it is true to protect your wealth and long-term goals, please do not take this article as “financial advice.” It’s more about showing you another option relating to coins vs telling you what you “should” or shouldn’t do. Only you know what’s best for you! :)]

Coins That Are Allowed and
Coins That Are Banned

Gold coins and bullions are the most popular form of physical gold in retirement plans. Unlike bars, it’s easier and less space-consuming to store coins. It should be noted that not all forms of gold coins are allowed in IRAs.

Here is a list of IRA approved gold coins:

  • American Eagle Gold Coins
  • Proof American Eagle Coins
  • American Buffalo Bullion Gold Coins
  • Canadian Maple Leaf Gold Coins
  • Austrian Philharmonic Coins
  • Australian Kangaroo/Nugget Coins
  • Chinese Gold Panda Coins
  • Credit Suisse/PAMP

Collectible gold coins, including rare coins, graded or certified coins are ineligible for IRAs. Also, gold coins in certain currencies, such as Swiss Franc 20, South African Krugerrand and U.S. Buffalo Proof, are not eligible for IRAs either.

Before you choose a type of gold coin for an IRA, it’s very important to find out whether that type of coin is considered eligible for the IRA.

Downsides to Adding Gold to Your IRA

While having gold coins in your IRA can be beneficial in many ways, it should be noted that doing so isn’t easy. You may encounter problems when you try to include precious metals in your retirement plan.

The biggest issue is finding a trustee or a sponsor for the plan. A self-directed trustee for your precious metal IRA is required by law to perform day-to-day administrative activities, transfer precious metals and handle storage. The trustees do charge fees. It can be a bit difficult finding an affordable and competent trustee because there are only a few who do this job.

You will also have to choose a reputable gold firm for the coins and for the rollover if that’s the option you are going with. It can be a pain to set up a gold coin IRA at first, but if you prepare well, the IRA can go ahead with little worry on your part.

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There you have it! What do you think, guys? Ever thought about throwing gold coins into your retirement account? ;) Anyone already doing so? (And can recommend a good company to hold them for you?)

I was personally hoping it was a LOT easier to do, and that I could also just literally house them myself in my safe or something, but it looks like that’s not exactly an option, haha…  I also don’t know if it’s worth paying a fee to have someone else watch them either – so if I ever do add gold to the mix it’ll probably be virtually through a fund instead.

Though I’ll continue to try and add them to my precious coin collection, of course! Can never have too much cold laying around, am I right? ;)

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