A Gold IRA is an IRS-approved retirement account that functions in the same way as a regular IRA and allows you to invest in physical Gold coins and bars and other IRS approved precious metals such as Silver, Platinum, and Palladium metals. Read More.
Frequently Asked Questions
A Gold IRA works exactly like any retirement account. You will be investing your retirement funds based on a specific tax treatment (pre-tax or after-tax) and then taking distributions in the future. With your Gold IRA or Custom Precious Metals IRA, you will continue to have beneficiary(ies) receive quarterly statements and have access your balances online.
Are there any penalties or taxes when I transfer or rollover a portion of my retirement account into Gold?
No. You will be able to transfer and or rollover any portion of your existing qualified retirement account on a tax-deferred, penalty basis. Your Allegiance Gold representative will help you navigate regulatory requirements, avoid tax pitfalls, and diversify your retirement accounts with physical precious metals.
The following major types of retirement accounts are eligible to be transferred without age restrictions: Traditional IRA, Roth IRA, Simplified Employee Pension (SEP) IRA, and Savings Incentive Match Plan for Employees of Small Employers (SIMPLE). Other types of retirement accounts that could qualify for transfer if the individual is over 59 ½ years old or no longer works with their prior employer include: 401k, 403b, 457b, and Thrift Savings Plan (TSP).
With the Taxpayer Relief Act of 1997, the IRS approved the following four main precious metals to be invested into an IRA: Gold, Silver, Platinum, and Palladium. Furthermore, within each type of metal, the IRS only allows a select few forms of bullion, coins, rounds, and bars. IRS issued requirements of fineness for the precious metals products with minimum 99.5% finesses for Gold, 99.9% for Silver, and 99.95% for both Platinum and Palladium.
No. To qualify as IRA-approved precious metals, coins or bars must be produced by a national government mint, refiner, assayer, or manufacturer that is accredited and certified by a commodities exchange, like NYMEX or COMEX, that doesn’t meet the minimum fineness requirement. Examples include:
- Any rare or collectible coin (e.g. pre-1933 numismatic gold coins, pre-1964 silver coins, etc.)
- Austrian Corona and Ducat
- Belgian Franc
- British Brittania (pre-2013)
- British Sovereign
- Chilean Peso
- Columbian Peso
- Dutch Guilder
- French Franc
- German Mark
- Hungarian Korona
- Italian Lira
- Mexican Peso and Onza
- South African Krugerrand
- Swiss Franc
Your IRA approved precious metals will be stored in third party depositories. Putting your IRA precious metals in depository storage ensures that they are fully protected. Allegiance gold works with the following nationally recognized depositories for the safekeeping and storage of our clients’ precious metals:
With depository storage, your precious metals are stored in a high-security facility that’s 100 percent insured against all loss, damage, theft, or other liability. These Depository Storage facilities have highly advanced security mechanisms and tools such as timed locks, 24-hour monitoring systems, automatic relocking and vibration, and motion and sound detectors. All depositories provide all-risk insurance and maintain a $1 billion insurance policy through Lloyd’s of London.
According to the IRS, Gold and other precious metals in a retirement account are required to be stored in the custody of an IRS approved custodian at a third-party storage facility until the funds are withdrawn on reaching the predefined retirement age.
No. The IRS strictly prohibits home storage options for precious metals used in IRAs. IRA-owned assets must remain in the custody of an IRA custodian until distributed or sold. This means that you can’t personally hold IRA-owned precious metals while in the IRA.
Any investor seeking to purchase IRS-approved bullion or coin with a self-directed IRA should not hold the bullion or coins personally at home or anywhere that is not in the “physical possession” of a U.S financial institution or IRS-approved nonbank custodian, such as a depository. Failing to do so could trigger taxes, penalties, and fees on your entire IRA in the case of an IRS audit. The IRS recently provided further guidance with regards to the “home storage” issue. Click here to find out more or read the ICTA’s white paper here.
Your self-directed IRA custodian will mail you quarterly physical statements listing your existing holdings. In addition, you will have online access to your self-directed IRA account and can view your holdings at any time.
The value of precious metals in your self-directed IRA is determined by their current market price, known as the spot price. It’s important to understand that this value is based on the time you purchased the metals, not the time you plan to sell them. Your self-directed IRA custodian, Strata Trust, will reflect the value of your holdings by multiplying the current spot price with the ounces of fine metal contained in the coin or bar. Spot values do not include any markups, mark-downs, premiums or commissions. Spot values should be used as an indication of value only and should not be construed as a firm value of your holdings.
Yes. If you are eligible to make an annual IRA contribution, you may contribute a maximum of $6,500 (if you are under the age of 50) or a maximum of $7,500 (if you are 50 years of age or over). With a Simplified Employee Pension (SEP), the annual contribution limit goes up to $66,000.
The self-directed IRA fees are transparent and typically a flat amount, meaning they will not fluctuate with the account balance. The annual fees include the following:
- $100 storage for depository storage of up to $100,000 worth of metals and
- $95 for account maintenance.
Depending on the transaction amount, Allegiance Gold covers your third-party fees. Ask your Allegiance Gold representative if your account qualifies.
You can take your distributions in the future with the following two methods.
- Standard Liquid Distribution: Similar to any retirement account, you can choose to receive a liquid distribution, typically comes in the form of a check, wire and or ACH.
- In-Kind Distribution: You can choose to receive the underlying asset as a direct distribution. In the case of precious metals, you’d take the distribution as a physical product — if you’re holding gold in the IRA, you’d receive gold bullion or coin. If you’re holding silver, you’d receive silver.
Our buyback process is streamlined and incredibly simple. You can request to sell back any metals that you bought from us at any time. We will evaluate your request and may decide to purchase the metals. We do not guarantee that we will make an offer to purchase. If we make an offer to purchase any metals, our offer will be based on our determination of business conditions and the current and projected market value for the item(s). For further information, please refer to the Client Shipping Agreement (include link to Shipping Agreement Here).
Your Required Minimum Distribution (RMD) is calculated based on your account balance, as of December 31, of the year that precedes the year in which you are taking the distribution. That number is then divided by the amount indicated in the IRS’s Uniform Lifetime Table.
You must calculate the RMD for each IRA account that you own. Please keep in mind that you must take the total amount, however, you have the flexibility to withdraw the funds from one account or multiple accounts as per your preference.
Yes. You can view the list of coins here and complete your purchase from the following direct purchase page with your bank wire, check, credit card, or PayPal account.