1 Open & Fund An Account 2 Choose a Depository for Storage 3 Purchase Your Precious Metals
What is a Precious Metals IRA?
A Precious Metal IRA (also known as a Self-Directed IRA) allows investors to acquire certain precious metals as an asset while keeping the tax benefits associated with an IRA account type.
Acquiring assets, such as silver, platinum, palladium or gold in an IRA is one way to diversify your retirement portfolio. Many people have experience investing their personal funds in precious metals. You can now capitalize on that experience and generate retirement wealth that is tax-deferred or tax-free.
If you already have a Precious Metals IRA, click here to view our IRA approved precious metals products and call 1-877-477-2646 to place your order and lock in your price.
Step-By-Step-Guide to Acquire Precious Metals in an IRA
Step 1 - Open & Fund an Account
The IRS requires that you hold your IRA precious metals in a custodian account. It generally takes one to two business days to set up your account after you have completed your application (timing varies by custodian). Then once you have opened your account, you can fund the account with a rollover, transfer, and/or contribution. Processing rollovers may take several weeks, so plan for that in your timetable.
Custodians you can use include:
Step 2 - Choose a Depository for Storage
IRS Regulations prohibit you from taking direct possession of your IRA’s precious metals. Accordingly, your precious metals will need to be held by an third party depository. Your custodian will set up an account at the depository of your choice in the name of your IRA. Any precious metals you purchase will then be shipped to your depository.
Third Party Depositories you can use include:
Step 3 - Choose & Purchase Your Precious Metals
Your IRA is allowed to purchase precious metals from any non-disqualified person or entity, such as SilverTowne. Once a purchase has been made, SilverTowne will send an invoice to your custodian and your custodian will use your IRA funds to purchase the precious metals. SilverTowne will ship the metals to the depository you've selected.
IRA Approved Precious Metals must meet the following fineness standards, as specified by the IRS: Gold must be .995+ Pure (Only exception are Gold American Eagles at .9167), Silver must be .999+ Fine, Platinum must be .9995+ Pure and Palladium must be .9995+ Pure.
Click here to view all of our IRA approved precious metals products and call 1-877-477-2646 to place your order and lock in your price.
- • Gold American Eagles
- • Gold American Buffalos
- • Canadian Gold Maple Leafs
- • PAMP Suisse Gold Bars
- • SilverTowne Minted Silver
- • Silver American Eagles
- • Canadian Silver Maple Leafs
- • Australian Silver Kookaburras
- • Platinum American Eagles
- • PAMP Suisse Platinum Bars
- • PAMP Suisse Palladium Bars
Important Things to Know About Precious Metals in IRAs:
- The IRA is the owner of the precious metals, not the IRA holder. Therefore, purchase, shipping and depository costs are paid by the IRA and all gains go back to the IRA.
- All legal documents related to an IRA-owned asset must be in the name of the IRA, not your personal name.
- The IRS does not allow the IRA holder to possess the physical metals while those assets are in the IRA, the metals are sent to a depository of your choice.
- An IRA custodian serves as an asset holder for your IRA. It tracks all your IRA’s activities, such as contributions, 401(k) rollovers, transfers, distributions and any investments that you make through your IRA.
- A depository is a third party physical location for your IRA Precious Metals to be stored.
- The metals must meet certain fineness standards, as specified by the IRS, to be held in a retirement account. Otherwise the metals can be refused by the depository.
- Notable disallowed coins for IRAs include South African Kruggerands, British Britannia (prior to 2014) and most US issued gold coins prior to 1986.
Self-Directed IRA FAQs:
Which IRA plans can be used to purchase gold and other precious metals?
There are all types of self directed retirement plans that can purchase precious metals including Traditional IRA, Roth IRA, HSA, SEP IRA, SIMPLE IRA, and Individual 401(k). Contact your advisor to see which plans best suits your needs.
What are IRA contribution limits?
Limits depend on the type of IRA and income levels. We recommend consulting with your IRA custodian to learn about any limits you may be subject to.
How do I acquire precious metals with my IRA?
If you chose New Direction IRA as your custodian (SilverTowne's preferred custodian) here's what would happen:
You would Open an IRA with New Direction IRA - online or by physical form.
Then you would fund the new IRA with a transfer of existing IRA funds, a rollover of old 401(k) funds, or an annual IRA contribution.
Once the IRA is open and funded, you would work with SilverTowne to determine the precious metals that will be purchased, the price and the terms.
Then you would direct New Direction to purchase said precious metals from SilverTowne through a New Direction Buy Direction Letter and a Depository Election Form and SilverTowne would send an invoice to New Direction.
Lastly, your metals would then be shipped to the depository you've selected.
How long does it take to rollover/transfer an existing IRA/401(k)?
Once you have an IRA open with an approved custodian it can take up to several weeks depending on where the IRA/401(k) is currently held.
When my IRA buys precious metals, how do I pay the depository Fees?
Your Custodian will invoice your IRA for the depository fee since it is an expense for the asset.
Can I move coins I own personally into my self-directed IRA?
No. This is considered self-dealing and the IRS states you can only fund an IRA with U.S. dollars.
Can I take possession of my precious metals after investing?
You may take possession of the precious metals held in your IRA by completing a Distribution Form and distributing the metals from your IRA account. Distributions on all pre-tax retirement accounts are subject to taxes, and the IRS may impose an early distribution penalty if your are under the age of 59½. Please consult a tax advisor.
What are the fees associated with custodians and depositories?
Fee structures do vary among each entity depending on the size of your account as well as the metal holdings in the depository; this is where 'due diligence' comes into play and we recommend doing research before making your final decisions.
Where are the precious metals stored?
Your IRA's precious metals cannot be held by you individually; they must be stored in a third party depository of your choice.
How do I sell the metals in my IRA?
If you do decide to sell your IRA precious metals/bullion, simply call SilverTowne with your intention. Your precious metals/bullion are then purchased by SilverTowne at their current value and the money is again placed in your IRA.
Do I have to pay shipping on my IRA purchase?
No, any IRA funding purchase from SilverTowne will ship free of charge.
Questions? Ready to get started? Call or email us at 1-877-477-2646 or IRA@silvertowne.com.
The tax laws regarding IRAs are very complex. Before making any decisions you should seek advice from your attorney, CPA, tax consultant, and/or investment advisor.