How to Buy Gold IRA

This will provide an overview of how to buy gold, but for a more in depth, go to our step-by-step instruction on how to execute a Gold IRA Rollover.

The first thing to do is decide on the type of IRA. With a traditional IRA, you receive a deduction from your taxable income for your contributions, but pay taxes on all of your withdrawals at your income tax rate. A Roth IRA provides no immediate tax deduction, but all withdrawals at retirement are tax-free.

Next, we need to select a mutual fund that invests specifically in gold.What does this mean? Well, gold is either invested through precious metals, i.e. coins and bullion, and others will invest in gold mining companies. Both types of investing are closely tied to the price of gold. Because mining companies can also mine other metals, i.e. silver, it is believed the latter offers a slight advantage in diversity.

Select the trustee of the investment is next on the list. If you choose a mutual fund that is part of a family of funds, it might offer IRA accounts as part of its services. Many brokers also serve as IRA trustees, and you can buy gold exchange traded funds and other gold-related funds through a broker. You can also choose a self-directed IRA trustee to allow you more flexibility, particularly if you choose to invest in gold bullion or coins.

Finally, we need to fund your gold investment in your IRA. As of October 2012, the maximum yearly IRA contribution is $5,000 if you are younger than 50 and $6,000 if you are 50 or older. This amount might be reduced depending on your income and if you participate in an employer-sponsored retirement plan. Arrange for a transfer of funds from your checking account or another mutual fund, or mail a check.

The IRS allows an IRA, Individual 401(k), HSA, or ESA to acquire certain precious metals as an asset while keeping the tax benefits associated with that account type.

An IRA holder must choose a dealer/broker and a depository in order to acquire physical precious metals in his or her IRA. There are dealers and depositories all over the U.S. and the world, and each has its own business practices, pricing structures and paperwork.

An IRA can purchase precious metals from any non-disqualified person or entity. The depository is a secure facility where the metals are held in the name of the IRA.

Step by Step Guide How to Buy a Gold IRA

Step 1 – Consult with your IRA custodian.

Step 2 – Open an IRA account with a different custodian.

Step 3 – Find out what paperwork is required to invest in gold.

Step 4 – Fill out the necessary paperwork to invest in gold.

Step 5 – Submit the paperwork to your custodian and ask when you will be permitted to invest in gold.

Step 6 – Submit funding and instructions to your custodian to purchase gold for your IRA account.