Gold IRA custodian is no different from the custodians for any other IRA investment vehicles. Typically, financial institutions are custodians that are responsible for managing the storage of the assets in your account.
In the case of Gold IRAs, the custodian manages your account. That same custodian may also hold other assets held in your IRA, such as other physical precious metals). Therefore, the custodian can also help complete the transactions for your account, such as executing withdrawals, handling the necessary paperwork, tax reporting and other administrative responsibilities.
In simplest terms, gold custodian keeps track of your account and ensure that your assets are where they should be.
- When you buy gold for your IRA, your funds will be placed under the management of your Gold IRA Custodian.
- Any gold that you add to your Gold IRA must remain under the management of your custodian until you no longer want the gold in your retirement account.
- Taking gold out of your IRA for physical possession is considered a distribution from your account and will be taxed accordingly (if applicable).
The Internal Revenue Service requires all retirement plans to be managed by a custodian – that includes not only Gold IRAs, but also 401(k)s, 403(b)s, SIMPLE IRAs and others.