A Gold IRA is an IRS-approved retirement account that functions in the same way as a regular IRA and allows you investing in physical Gold coins and bars and other IRS approved precious metals such as silver, platinum and palladium metals. Read More.
Frequently Asked Questions
How does it work?
A gold IRA works exactly like any retirement. You will be investing your retirement funds based on specific tax treatment (pre-tax or after-tax) and then take distributions in future. With your Gold IRA or Custom Precious Metals IRA, you will continue to have beneficiary(ies), receive quarterly statements and be able to login online to check your balances
Are there any penalties or taxes when I transfer or rollover 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.
Is it IRS approved?
Yes, the specific IRS code is listed under U.S Code (408) (m) (3). Click the following link to read more.
Is my retirement account qualified to be transferred?
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 could be qualified to be transferred if the individual is over 59 ½ years old or no longer works with prior employer, such as: 401k, 403b, 457b and Thrift Savings Plan (TSP).
What type of products will I be able to invest it?
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. Further, within each type of metal, the IRS only allowed 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.
Are all precious metals products IRA approved?
No, any coins or bars produced by national government mint, refiner, assayer, manufactured, accredited and certified by NYMEX or COMEX that doesn’t meet the minimum fineness requirement. Examples include:
- Any rare or collectible coin such ash pre-1933 numismatic gold coins and or pre-1964 silver coins.
- 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
Where will my metals be stored?
Your IRA-owned 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:
What type of assurance does the depository provide?
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 hours monitoring system, automatic relocking, and vibration, motion, and sound detectors. All depositories provide all risk insurance and maintain a $1 billion insurance coverage through Lloyd’s of London.
Why can I not have immediate possession of my metals?
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.
Does Allegiance Gold provide home storage options for precious metals IRA?
No, until its fully approved by the IRS, Allegiance Gold does not provide home storage options for precious metals IRA. IRA-owned assets must remain in the custody of the 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 (link to the white paper page).
How can I keep track of my IRA precious metals products?
Your self-directed IRA custodian will mail you quarterly physical statements listing your existing holdings. In addition, you can login online to your self-directed IRA account and view your holdings anytime.
How will the values of my products be reflected on my self-directed IRA statement?
Values for precious metals in your self-directed IRA will be reflect based on the spot value. 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.
Can I contribute into the self-directed IRA and take tax deductions?
Yes, if you are eligible to make an annual IRA contribution, you may contribute up to the maximum of $5,500 if under age 50, or up to $6,500 if age 50 or over. With a Simplified Employee Pension (SEP), the annual contribution limit increases to as high as $54,000.
What are the fees of a self-directed IRA?
The self-directed IRA fees are a transparent and typically flat amount, and will not fluctuate with the account balance. The annual fees include the following:
- $100 storage for the depository up to $100,000 worth of metals and
- $95 for the account maintenance.
Depending on the transaction amount, Allegiance Gold covers your third-party fees. Ask your Allegiance Gold representative if your account qualifies.
How can I take my distributions in future?
You can take your distributions in the future with the following two methods.
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- 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.
What is your buy back policy?
Our buyback process is streamlined and extremely simple. At any time, you can request to sell back any metals that you bought from us. We will evaluate your request and may decide to purchase the metals. We do not guarantee that we will make an offer to purchase or actually purchase any metals. If we make an offer to purchase any metals, our offer will be based on our determination of business conditions, current market value for the item(s), and projected market for the item(s) in the future. For further information, please refer to the Client Shipping Agreement.
How will the RMD be calculated when I have multiple IRA accounts?
Your RMD is based on your account balance as of December 31 of the year that precedes the year 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. However, you may withdraw the total amount from one account or more than one account. Please keep in mind that you must take the total amount.
Am I able to just buy Gold Coins without setting up an IRA?
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 PayPall account.
