Gold IRA Rules

When Can I Withdraw My Gold IRA?

Navigating your way through the standard Gold IRA Rules can be like a maze, but with a little guidance, it’s a fairly simple process.

Like other IRAs, you cannot liquidate the funds until you reach a certain age. As of this writing, the minimum age is 59½ years. If you take a distribution before that date, not only will you have to pay income tax on the amount you withdrew, but you will also incur a 10% early withdrawal penalty fee.

Once you reach 70 years of age, however, you will begin to receive automatic withdrawals.

There are two ways to take a distribution or withdrawal from your gold IRA:

  1. Liquidate the gold and withdraw it from your IRA
  2. Take the physical gold and liquidate it later

You can ask the custodian to sell your gold and give you the proceeds, or take physical possession of the metals yourself. The first option is often the best, as you don’t have to deal with melting down and selling the gold yourself. Gold buyers or pawnshops often include steep markups to sell your gold. This is one reason why it’s important to choose a firm with an excellent buyback program.

Note that if you liquidate the gold before withdrawing it, the normal IRA tax rules apply. That being you pay income tax upon withdrawal, but if you take physical possession of the gold, you must pay the income tax on the value of the metal at the time you withdrew it. You also have to pay a 28 percent capital gains tax on the gold when you liquidate it in the future.

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