IRA Eligible Gold: The Secret To Building A Strong Retirement Foundation

May 23, 2023

Having IRA eligible gold in your retirement portfolio is one way to preserve your wealth for future generations. But not all gold can be held in a gold or precious metals IRA. The IRS set the purity standards for gold at 99.5% (23.88 karats) and above. When purchasing gold for an IRA, you must choose an experienced custodian and dealer to ensure it meets this criterion.

Whether you’re a savvy investor or a newcomer to gold IRAs, I recommend starting your gold investment journey with a well-known mint or gold manufacturer, such as The United States Mint and The Royal Canadian Mint. These companies are best known for their gold coins and bars, which could give you confidence in the quality and authenticity of their products.

Furthermore, you must choose a gold IRA company that deals with these types of eligible gold assets. When it comes to gold IRA companies, we can’t recommend Augusta Precious Metals enough. With Augusta, you’ll be able to buy and sell gold coins and bars from the US and Royal Canadian mints, resting assured that every ounce you buy will be eligible for your gold or precious metals IRA.

For thousands of years, gold has been a trusted store of value due to its durability, scarcity, and as a form of worldwide currency. Buying just a quarter ounce of it provides diversification to your assets, helping you build a stronger retirement portfolio against market volatility and economic crisis.

This post explores IRA-eligible gold, its standards and requirements, how to invest, types of gold IRAs, benefits and fees, and the best IRA-approved gold coins and bars. So fill another coffee and prepare for the first step towards a profitable and resilient retirement portfolio.

What Is IRA-Eligible Gold?

IRA-eligible gold refers to physical gold that meets IRS standards and requirements. It has to be approved by the IRA to be qualified as a self-directed IRA. This self-directed IRA could be a Traditional, Roth, Simplified Employee Pension (SEP), or Savings Incentive Match Plan for Employees (SIMPLE) IRA.

IRA Eligible Gold: The Secret to Building a Strong Retirement Foundation

If you like to purchase IRA-eligible gold, it must be produced by an approved industrial facility and should be 99.5% pure. For example, gold bullion, such as coins and bars, should meet the standards of other precious metals like silver, platinum, and palladium.

Gold Purity Standards And Requirements By The IRS

The IRS has specific standards and requirements if you want to invest in physical gold to build a strong foundation for your retirement. As mentioned, the gold bullion must be at least 0.995 or 99.5% pure to qualify for an IRA.

On the other hand, if you bought non-IRA-eligible gold, you won’t be able to deposit it in your IRA. If you do, you can expect to pay taxes and penalties from the IRS.

Amount Of Gold You Can Invest

When you buy your first physical gold, you are limited to investing 1, ½, ¼, and 1/10 ounces of gold in your account. These should be produced by the US Treasury Department, like American Eagle Gold Bullion Coins or JM Bullion, since the government backs them and are legal to be used as a retirement investment.

Thus, it’s recommended that you purchase your gold with a reputable custodian to ensure that your gold products meet the IRS rules and regulations.

How To Find IRA-Approved Gold Coins And Bars

If you’re considering purchasing IRA-approved gold coins and bars, you must start by choosing the right source of your gold, i.e. the right mint. The first step is to do your research and look at different companies’ performance and customer reviews. Take note of things like the company’s reputation, transparency, and customer service, but also focus on the quality of their gold products.

If you don’t know where to start, here’s a list of a few well-known IRA-approved gold coins and bars:

  • American Eagle Gold Coins
  • American Buffalo Gold Coins
  • Canadian Maple Leaf Gold Coins
  • Austrian Philharmonic Gold Coins
  • Australian Kangaroo/Nugget Gold Coins
  • PAMP Suisse Gold Bars
  • Credit Suisse Gold Bars
  • Johnson Matthey Gold Bars
  • Valcambi Suisse Gold Bars
  • Union Bank of Switzerland (UBS) Gold Bars

If you’d like to see more gold products that you’d want to invest in for your retirement portfolio, you can check out JM Bullion. It offers a broader range of investments in gold and other precious metals, from coins, bars, and notes to special occasions like gold birthday notes and silver Disney coins.

How To Invest In IRS-Approved Gold

To start investing in IRS-approved gold, you must open a self-directed IRA with a reputable custodian offering precious metals investments (otherwise known as a gold IRA company). Before you buy your physical gold, it must follow the purity of standard of the IRS, which in this case, is at least 99.5% pure. I recommend buying one of the best IRS-approved gold coins like the American Gold Eagles and Canadian Gold Maple Leafs, since they meet the criteria for eligibility.

Once you’ve purchased your physical gold, it must be stored by your custodian in an IRS-approved depository like Delaware Depository or Brink’s Security Company. If you ever need to or want to sell your gold, you can contact your custodian’s administrator, and they’ll help you complete the process.

Types Of Gold IRAs

There are 3 types of gold IRAs where you can invest your retirement savings in precious metals like gold: Traditional, Roth, and Simplified Employee Pension (SEP). Each offers different tax benefits and eligibility requirements, which can benefit every type of investor.

  • Traditional Gold IRA – generally doesn’t let you pay taxes on your contributions until you withdraw it during retirement. This is best for you if you expect to be in a lower tax bracket when you retire.
  • Roth Gold IRA – allows you to withdraw your earnings without paying taxes since you’ll be using after-tax dollars to purchase gold.
  • SEP Gold IRA – works like traditional gold IRA but for the self-employed or if you’re a small business owner who also wants to invest in gold.
  • SIMPLE Gold IRA – allows both employers and employees to make contributions with low contribution limits. It also offers precious metals investments where you can either purchase gold ETFs or actual gold bullion.

Overall, gold IRAs allow you to invest in gold and other precious metals like silver, platinum, and palladium for a stronger retirement portfolio. If you’d like to start investing in gold, I recommend you create an account with the “Best Overall Gold IRA Company” which is the Augustus Precious Metals. It has an A+ rating on BBB and offers free gold IRA guide when you sign up on their website.

If you’d like to try their service, you can roll over your existing IRA or 401(k) into a gold IRA with their administrator’s guidance and help you transfer your funds seamlessly in order to purchase your first gold bullion.

Benefits Of Investing In IRS-Approved Gold

IRA Eligible Gold: The Secret to Building a Strong Retirement FoundationIf you’ve ever considered purchasing gold that isn’t approved by the IRS to “save money on taxes,” lo and behold, doing that will make you pay double the taxes. Aside from the capital gains tax of up to 28%, you’ll also be subject to a collectible tax rate of 28% if the IRS doesn’t approve your gold coins and bars. So, get a certified custodian and do the process legally.

But if you do buy IRS-approved gold, not only will it lessen your taxes, but you’ll also get to enjoy several benefits. These are:

#1 Tax Advantages

IRS-approved gold can be invested in a gold or precious metals IRA, meaning you won’t pay taxes on your gains until you withdraw funds from your IRA or pay taxes on your contributions but enjoy a tax-free withdrawal later. It all depends on the type of gold IRA you have.

#2 Portfolio Diversification

Like investing in stocks, bonds, and real estate, allocating some of your retirement funds to IRS-approved gold can help diversify your portfolio. This will also reduce your overall risk of market fluctuations or unpredictable trends in the stock market.

#3 Safe Haven Asset

Suppose you’ve been in the investing world for a while. In that case, you’ve experienced the instability of other asset classes, like stocks, when there is inflation and recession because consumer spending tends to decrease.

With gold, it can help protect your retirement wealth since it’s limited in supply and cannot be easily manipulated, which makes it less susceptible to economic pressures.

#4 Tangible Asset

Gold is a tangible asset you can physically hold and store for centuries. It is also globally accepted as a currency and can be easily bought and sold internationally.

Purchasing an IRS-approved gold coin can be traded quickly, especially if your gold coins and bars meet the purity standards. This makes physical gold liquid and accessible investment for dealers and investors alike.

#5 Estate Planning

An IRS-approved gold can also be considered a valuable tool for estate planning since it can preserve wealth and be inherited by future generations as a store of value. It can also be purchased in various forms, like coins and bars, which can be stored in a safe or vault to ensure your retirement wealth is protected for years.

Furthermore, choosing an IRS-approved gold doesn’t only prevent you from paying additional penalties but also provides you with potential benefits for your retirement. As an investor, you have to explore both the potential risks and rewards of any investment so that it will align with your retirement goals in return.

Best IRA-Eligible Gold Coins And Bars

So, you already know what IRA-eligible gold is and how to invest in it. Now you want to identify which gold coins and bars are best for your retirement. The table below shows know the finest coins to hold, along with their purity and weight, both of which make up the standards that make them eligible by the IRS.

IRA-Eligible Gold Coins

PurityAvailable Weight
American Gold Eagle Coins22-karat gold (91.67% pure)⅒ oz, ¼  oz, ½ oz, and 1 oz
American Gold Buffalo24-karat gold (at least 99.90% pure)⅒ oz, ¼  oz, ½ oz, and 1 oz
Canadian Gold Maple Leaf 24-karat gold (at least 99.90% pure)⅒ oz, ¼  oz, ½ oz, 1 oz, 10 oz, and 1 gram
Austrian Gold Philharmonic24-karat gold (at least 99.90% pure)⅒ oz, ¼  oz, ½ oz, 1 oz, and 10 oz
Australian Gold Kangaroo24-karat gold (at least 99.90% pure)0.01 oz, ⅒ oz, 1 oz, and 1 kg
South African Gold Krugerrand22-karat gold (91.67% pure)1/50 oz, 1/10 oz, 1/4 oz, 1/2 oz, 1 oz, 1.85 oz, and 2 oz

IRA-Eligible Gold Bars

PurityAvailable Weight
PAMP Suisse Gold Bars24-karat gold (99.99% pure)1 oz and 10 oz
Credit Suisse Gold Bars24-karat gold (99.99% pure)1 oz and 10 oz
Royal Canadian Mint Gold Bars24-karat gold (99.99% pure)1 oz and 1 kg
Perth Mint Gold Bars24-karat gold (99.99% pure)1/2 oz – 1,000 oz
Valcambi Gold Bars24-karat gold (99.99% pure)1 oz and 10 oz 
Sunshine Mint Gold Bars24-karat gold (99.99% pure)1 oz, 5 g, 10 g, and 1 g
Johnson Matthey Gold Bars24-karat gold (99.99% pure)1 oz 
Argor Heraeus Gold Bars24-karat gold (99.99% pure)1 g – 1 kg 

Overall, it’s still best to purchase IRS-approved gold coins and bars since they meet IRS standards and have a higher chance of selling at a higher price. Whether you buy 22-karat or 24-karat gold, it’s still your decision to buy the other, depending on your preferences, investment goals, and budget.

How To Sell Your Gold In An IRA

To sell gold in your IRA, you must follow these procedures set by your IRA custodian to avoid any extra penalties or taxes. You can refer to the steps below to sell your gold in an IRA:

#1 Contact Your IRA Custodian

First, contact your existing IRA custodian to let them know you’re selling the gold in your account. Then, they will provide you with the necessary forms and instructions to complete to start the transaction.

At this point, you should already know the amount you’re going to liquidate—either in full or partial—and determine the specific dollar amount if it’s partial.

#2 Choose An Experienced Dealer

After completing the paperwork with your IRA custodian, you must choose an experienced dealer to buy your gold. You should select a reputable dealer to ensure they know the regulations for selling gold and that your gold will be sold at a fair price.

#3 Initiate The Transaction

Once you have chosen an authorized dealer, inform your IRA custodian about the sale and have them transfer the proceeds into your IRA account. After that, they will give you the necessary forms to complete the trade.

#4 Transfer Your Gold Investments

After the sale has been approved, your IRA custodian will transfer your gold to the dealer, and they will issue the payment to your custodian.

#5 Receive Payment

Once your IRA custodian has received the payment, they will deposit the funds into your IRA account. You can reinvest your funds into alternative investments like real estate. Still, you can also choose to withdraw them to spend for your retirement.

Whether you want to sell your gold to cover up certain expenses or convert it into an income stream for your retirement, working with your IRA custodian and a reputable dealer is essential to guarantee that you follow the proper procedures.

Can Gold Coins Be Held In An IRA?

Yes, gold coins can be held in an IRA if they meet the qualifications to be eligible in the account. These gold coins and bars must be produced by the US Treasury Department and stored by a custodian, not at home.

How Is Gold IRA Eligible?

Gold can be considered IRA-eligible if it has specific criteria set by the IRS. According to the IRS, the gold must be at least 0.995 pure, and its weight and fineness should be equal to or greater than the American Gold Eagle Coin.

What Are The IRA-Eligible Precious Metals?

The IRA-eligible precious metals are gold, silver, platinum, and palladium. Not all precious metals are eligible for an IRA investment since collectible coins or rare coins such as Silver Britannia don’t meet the specific level of minimum purity given by the IRS.

If you want to invest in IRA-eligible precious metals, here are the purity standards that every metal should have:

  • Gold: at least 99.5% pure
  • Silver: at least 99.90% pure
  • Platinum: at least 99.95% pure
  • Palladium: at least 99.95% pure

It’s important to know that there are rules and regulations you should follow when you like to invest in precious metals. If you’d like to build a more diversified retirement portfolio, you should seek advice from your financial advisor first to avoid wasting money on the wrong investments.

In Summary

An IRA-eligible gold is a type of physical gold that meets the specific standards and requirements set by the IRS to be allowed in an IRA. Buying and investing in IRA-eligible gold may keep you away from tax consequences and provide diversification and tax benefits to your retirement portfolio.

Furthermore, you should purchase and sell your gold coins and bars with a reputable dealer. This way, it’ll be easier to process the transactions while complying with the IRS’s regulations.

IRA-Eligible Gold FAQs

Is gold and silver IRA legal?

Yes, a gold and silver IRA is legal. Investors can hold precious metals like gold, silver, palladium, and platinum in a self-directed IRA if they meet IRS standards and requirements. For example, gold must be at least 99.5% pure, and silver must be at least 99.9% pure.

Is gold allowed in an IRA?

Yes, gold is allowed in an IRA. Gold coins and bars can be held in an IRA if it meets their purity level of 99.5% or 0.995 fineness. The gold must be purchased from a reputable custodian to ensure its purity standards and that it will be stored in a secured facility.

Can IRAs invest in gold?

Yes, IRAs can invest in gold. It can hold physical gold or other precious metals if it meets specific requirements set by the IRS.

Can I have gold in my Roth IRA?

Yes, you can have gold in your Roth IRA. You can invest in gold in your account by setting up a Roth IRA with an IRA custodian and then wait for them to fund your account to purchase gold.

How much gold can you buy before the IRS?

The gold you can buy before the IRS is less than $10.000. Buying more than $10,000 requires your precious metals dealer to report your transactions to the IRS legally. They will be obligated to file a Form 8300 with the IRS, and avoiding this can result in tax, criminal charges, or penalties.

How many ounces of gold can you buy for $1,000 in an IRA?

The amount of gold you can buy for $1,000 in an IRA depends on the current market prices. As of April 2023, the cost of gold was approximately $1,980 per ounce. This means that with an investment of $1,000, you can buy 0.50 ounces of gold.

Which IRA-approved gold coins are tax-free?

The IRA-approved gold coins that are tax-free are:

  • American Gold Eagle coins.
  • Canadian Gold Maple Leaf coins.
  • Australian Gold Kangaroo/Nugget coins.
  • Austrian Gold Philharmonic coins.

These gold coins and bars are tax-free because they meet specific purity standards set by the IRS, and not all gold is eligible to be tax-free.

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