Gold IRA Rules You Should Be Aware Of

Gold IRA Rules iconGold IRA rules are pretty straight forward, however common mistakes can result in unexpected taxes and penalties.

Since the IRS relaxed their rules regarding the addition of physical gold to retirement accounts, precious metals have become an essential part of many retirement plans in the United States. Get it wrong (set up, distributions or distributions wrong however and you could be looking at double taxation – or other nasty surprises.

As we all know, Uncle Sam and the IRS likes their regulations – so it’s not surprising that gold IRA rules would come into the picture when setting up a gold-backed retirement account.

We’ve got up to date gold IRA rules listed below in plain English, so you don’t necessarily have to be an IRA lawyer or accountant to get a basic grasp of these complex regulations.

IRA Basics: Contribution Limits:
For 2020, your total contributions to all of your traditional and Roth IRAs cannot be more than:

* $6,000 ($7,000 if you’re age 50 or older), or
* your taxable compensation for the year, if your compensation was less than this dollar limit.

For 2015, 2016, 2017 and 2018, your total contributions to all of your traditional and Roth IRAs cannot be more than:

* $5,500 ($6,500 if you’re age 50 or older), or
* your taxable compensation for the year, if your compensation was less than this dollar limit.

The IRA contribution limit does not apply to rollover contributions or qualified reservist repayments

Required Minimum Distributions
Unlike with precious metals outside of a retirement account, you cannot keep retirement funds in your IRA indefinitely. You generally have to start taking withdrawals from your IRA, SIMPLE IRA, SEP IRA, or retirement plan account when you reach age 70½.

Your required minimum distribution is the minimum amount you must withdraw from your account each year.

* You can withdraw more than the minimum required amount.
* Your withdrawals will be included in your taxable income except for any part that was taxed before (your basis) or that can be received tax-free (such as qualified distributions from designated Roth accounts).

For IRAs (including SEP and SIMPLE IRAs) this starts at April 1 of the year following the calendar year in which you reach age 70½.

The IRS has prepared worksheets where you can easily calculate your minimum distributions.

For full details on distribution, early distribution and taxation, see the Full IRS Guide

By following these IRA rules and the following rules specifically looking at precious metals IRAs – you will keep your hard-earned retirement funds out of the clutches of the IRS…

Ready to Get Started Keeping and Growing Your Hard-Earned Savings?

Invest in Gold and Silver for a Secure Retirement

Click Here Now
to claim your FREE IRA Gold Investment Kit
It only takes seconds, and your information is 100% secure.

IRA Gold Investment Guide

The IRA Gold Investment Guide

The American IRA and 401(k) Crisis

The American IRA and 401(k) Crisis

Get 10% Back in FREE SILVER

Get 10% Back in FREE SILVER


IRA Gold Investment GuideThe IRA Gold Investment Guide

Goldco’s top educational guide, The IRA Gold Investment Guide has helped thousands of new investors get a handle on a most confusing marketplace – while introducing them to a little-known tax loophole.

From obtaining the right gold and other precious metals at the right prices, to saving money on ultra-secure stateside vaulting facilities and staying clear of a disturbingly growing list of top gold scams, this physical guide and it’s companion e-Guides are highly recommended reading for both novice and experienced investors alike.

Written in easy to follow laymen’s terms by top precious metals professionals and security experts, you’ll get your IRA Gold Investment Guide express shipped straight to your door.

Get a winner’s edge over the crowd and claim your free copy today.


American IRA and 401(k) Crisis

The American IRA & 401(k) Crisis

A major crisis is brewing that’s getting worse every day – yet nobody seems to know about it, which the Coronavirus Pandemic has sadly finally lit the match to.

If you’re heavily invested in paper assets, you really need to know about this because it could, quite literally, cause your retirement savings to go up in smoke.

Even if you believe that your retirement is secure you’re going to be shocked that not only are you wrong, but dead wrong. All of the hard work you’ve put in to provide for your golden years and your hard-earned savings are at risk.

However, the ship hasn’t sailed quite yet and there are simple steps you can take to not only protect your account from this financial cancer, but to grow your retirement nest egg into an investment dynamo.

How? This Guide Spills the Beans.


Get 10% Back in FREE SILVER

Special Limited Time Bonus: Get 10% Back in FREE SILVER

To help further protect your retirement plan in these dangerous times, you can qualify for 10% in EXTRA stimulus silver when you open and fund a Gold IRA.

For a limited time, not only are you getting these industry-leading investment guides, but Goldco will award you 10% Back in FREE SILVER when you open your new Gold IRA account to help get your precious metal investments started.

For example – open a $100,000 Gold IRA and receive $10,000 in FREE SILVER!

No Maximum ✓

Your 10% back in FREE SILVER applies no matter how big the transaction. Open a Gold IRA with $1M, and Goldco will send you $100,000 in FREE SILVER!

Send It Anywhere ✓

Choose whether you want your FREE SILVER sent to your doorstep with FREE SHIPPING, or directly to directly to your new Gold IRA. It’s entirely up to you.

How To Get It: Just mention the 10% Back FREE Silver Promotion to your Goldco Representative when they call to arrange shipping of your free investor’s kit.

Don’t Want to Wait? Call Now!

(877) 589-1420

Your Goldco® Gold Investment Specialist will be happy to ship your free expert Gold IRA Kit as well as answer any questions you have about the rollover process. They are available to help you understand and navigate precious metals investments, finding the right solution custom tailored for your wealth growth and preservation goals.

Rules Specific to Gold IRAs

The Collectibles Trap

Gold IRA Collectible Coins iconThe Taxpayer Relief Act of 1997 allowed us to add gold and precious metals to our Individual Retirement Accounts, opening the floodgates to those desperate for a tax-efficient hedge in a diversified retirement portfolio.

Designed to be relatively simple to operate and set up, the gold IRA is an immensely popular vehicle, but there are still a number of potential pitfalls for the unwary in buying retirement gold.

As is typical with the IRS – this apparent simplicity can at times hide complicated rules and restrictive clauses in an otherwise perfect retirement plan.

As take-up of previously restricted asset classes, notably hard assets like gold and silver becomes widespread, these hidden rules and exceptions have begun to catch out more and more investors.

Adding to the problem – there’s a huge amount of misinformation online and it’s not unknown for unscrupulous dealers to take advantage, knowingly selling high mark-up coins as suitable for an IRA when they’re absolutely not.

Collectible Coins and Section 408(m) of the Internal Revenue Code

When most people think of collectibles they tend to think of art, antiques and ornaments – so it’s often a surprise when they realize a huge part of the precious metals market is classified as collectibles.

The simple mistake of buying the wrong gold coins for your IRA can result in a huge and unexpected tax bill.

For example if $15,000 of your IRA funds are used to invest in coins classified as collectibles, the IRS will view your transaction as a $15,000 distribution. This means the $15,000 should be reported as being part of your gross income, and liable to income tax at your standard tax rate.

It gets worse. In addition to being hit for tax on the $15,000 there’s an additional 10% penalty tax if you’re younger than 59.5.

But it doesn’t end there. You’ve already paid tax on the distribution and a penalty on the price when you mistakenly added the collectibles. But fast forward to the eventual selling of these collectible coins and the proceeds of the sale being distributed to the IRA owner or beneficiaries.

As a prohibited transaction this sale will again form part of gross income for the year of the distribution, meaning a further tax hit, with no credit being given for previous penalty tax. Effectively double taxation.

What is a collectible coin?

Collectible Coins and Gold IRA RulesWith the exception of a few special US coins*, if a coin is sold on the basis of any special merit over and above the value of it’s precious metal content, then it’s a collectible.

Rare coins, miss-strikes, antique coins, proof coins, slabbed coins, specially graded coins, limited edition coins, enameled coins, coins in presentation cases – are typically collectibles and therefore not allowed in a gold IRA.

Play safe. Stick to buying standard bullion coins and rounds of sufficient purity, from mints recognized by the IRS. We list them here.

You’ll know a coin is effectively standard bullion by it’s price. Standard bullion coins and rounds sell at the spot price, plus a small premium of 5-20%. To be extra safe, only buy coins listed as being definitively suitable for an IRA. Not coins that should be suitable or may be suitable.


The Exception: Gold and Silver American Eagle Proofs in an IRA

Despite being very obviously “collectibles”, there are gold and silver proof coins that can be added to a gold IRA but they must be American Eagle proofs.

Proofs are beautiful coins. The gleam with a true mirror finish and when looked at next to a regular bullion coin, the regular coin seems almost disappointing. Extra care goes into a proof coin’s production, and they tend to be sold in display cases – adding to their overall beauty.

It’s this beauty that commands higher premiums and greater dealer markups and commission. Is that beauty worth an extra 20%, 30% 50%, even 100% to you?

Will it be worth that same premium when you come to sell? Our experience says no.

A quick test – if you are looking to buy proof coins from a dealer, phone them and say you have say 20 gold proof eagles you’re looking to sell. See what you’re offered and compare it to their sale price.

Do the math and ask yourself if you want to take that kind of hit on your account for the sake of owning some slightly more shiny coins held in a distant vault.

Beware “Collectibles” that are not collectible

Numismatic coins can make good investments outside of an IRA, but for the purposes of a gold IRA, remember all you’re really interested in is the weight of precious metals in your account.

As we’ve mentioned before dealer margins on regular bullion coins and rounds are pretty low especially if you shop around.

So some dealers, will take steps to increase their margins. They will sell fairly common bullion coins as being special for some reason – be it last of a design run, first of a design, or will imply a limited production of “only” 10,000 coins or some other must-buy reason.

They can make a very convincing argument and it’s easy to believe what these “experts” are saying if you’re new to precious metals investing.

And these coins WILL be suitable for your IRA, despite being collectible.

Why? Because they’re not collectible, or rare, or limited – or at least not in a sense that will give them a resale value over their basic intrinsic metal content.

But the dealer will have made a nice profit from you.

Home Storage Gold IRAs are NOT allowed

Home Storage Gold IRA iconGold in an IRA must remain with your custodian or trustee at an approved depository.

You can take a distribution from your IRA, however this will be taxable and may carry additional fees and penalties.

In recent years some IRA companies have started promoting “Home Storage”, “Check Book” IRAs or “LLC” IRAs as a loophole to this rule, where the IRA holder forms a Limited Liability Company. This LLC then buys gold coins (not bars, and so far only American Eagle coins are used in the scheme), which can be in turn be stored at the new LLC company HQ – which will typically be the IRA holder’s home.

However IRS Publication 590 specifies that for all IRAs, “The trustee or custodian must be a bank, a federally insured credit union, a savings and loan association, or an entity approved by the IRS to act as trustee or custodian.”

Again the IRS website states This rule [Gold in an IRA should be held at a bank etc] also applies to an indirect acquisition, such as having an IRA-owned Limited Liability Company (LLC) buy the bullion. [These] IRA investments… run the risk of disqualifying the IRA because of the prohibited transaction rules against self-dealing.

Therefore storing Gold IRA products in the IRA owner’s home or in a safe deposit box to which the IRA owner maintains a right of access is not within the letter or the spirit of the Internal Revenue Code – that is, the tax-advantaged IRA assets should be held outside the possession and personal control of the IRA owner until retirement or early distribution.

Some Home Storage IRA companies mention the Swanson v. Commissioner case in 1996, adding that the IRS and the Department of Labor have, through field service advisory letters, and DOL advisory opinion letters, consistently acknowledged the existence of the CheckBook IRA – however the Self-Storage IRA arrangement has not been approved or recognized by the Internal Revenue Service – formally or in a no-action letter issued by the IRS, Employee Plans Division. And now they’ve explicitly stated it is not allowable.

In short, don’t do it.

Finally remember the one rollover per year rule

As mentioned above, from January 1, 2015, you are only permitted to make one rollover from one IRA to another IRA in any 12-month period, regardless of the number of IRAs you own.

Ready to Get Started Keeping and Growing Your Hard-Earned Savings?

Invest in Gold and Silver for a Secure Retirement

Click Here Now
to claim your FREE IRA Gold Investment Kit
It only takes seconds, and your information is 100% secure.

IRA Gold Investment Guide

The IRA Gold Investment Guide

The American IRA and 401(k) Crisis

The American IRA and 401(k) Crisis

Get 10% Back in FREE SILVER

Get 10% Back in FREE SILVER


Gold Backed IRA Information