IRA - Frequently Asked Questions
Q: What can I keep in my Precious Metals IRA?
A: You can keep only IRS-approved metals in your Precious Metals IRA, however we always recommend professionally selected proof coins because of their numismatic significance, which drives the price up above the value of the metal in the coins.
Q: How are Required Minimum Distributions (RMDs) handled for precious metals accounts?
A: You can either take an in-kind distribution or sell your precious metals and take a cash distribution.
Q: Can I put gold and silver coins I already own in my IRA?
A: Yes. We will provide information to you on how to ship your holdings (insured) to our Depository.
Q: What are the limits on how much gold I can own?
A: Private gold ownership in the United States has no size limitations. You are limited only by your budget and common sense.
Q: What is meant by the "fineness" or "purity" of precious metals?
A: The purity of precious metal is measured in parts per thousand and is called its "fineness." This indicates the proportion of pure precious metal actually contained in the refined product verses its remaining alloys. A bar that is 999.9 fine is 99.99% pure gold and referred to as "four nines" gold.
Q: Could you walk us through the process of how an investor would open a Precious Metals Investment Account with Gold Bullion Exchange?
A: There are really three phases to opening your Precious Metals Account with us. These are:
Establishing the Account.
Funding the Account with cash or other investments, including precious metals.
Investing the funds in precious metals.
First, the Account must be established with us.
Secondly, the Account must be funded by either cash or a transfer from elsewhere.
Finally, Gold Bullion Exchange purchases the precious metals and hold them in safekeeping for you. We will provide you with the forms necessary to open the account, as well as forms to effect a transfer. Once the account is opened and funded, the customer gives us specific instructions regarding the metals to purchase and the price. Gold Bullion Exchange then makes the purchase, and the metals are shipped to Delaware Depository Service Corp.
Q: Does Gold Bullion Exchange report to the IRS what is being held in my IRA?
A: No. Gold Bullion Exchange reports the market value of IRA – not investments of the IRA.
Q: Can I take possession (custody) of my precious metals?
A: Only if taking an in-kind distribution. If the metals are purchased by the IRA, the Internal Revenue Service requires a
custodian to hold the assets and the custodian is required to report transactions on the account. At the age of 59.5, you will be able to take physical possession of your metals without any penalties.
Q: Are my precious metals insured while stored at a Depository?
A: Yes. Delaware Depository Service Company maintains total insurance policy limits of $1 Billion in insurance coverage. The current policy is underwritten by Lloyd’s of London and includes all risks of physical loss and/or physical damage, including mysterious disappearance and/or unexplained loss and shortage, employee dishonesty and theft.
Q: Can I go visit or see my precious metals held at a Depository?
A: Only when you are taking a distribution of your precious metals. Visitations are not allowed due to the security risk.
Q: Is there any type of audit performed to ensure that my metals are accounted for?
A: Along with monthly reports of your holdings at the Depository, Gold Bullion Exchange receives reports when there is any activity (movement)
in your account.
Q: What are the penalties associated with a Precious Metals IRA?
A: There are no penalties if you purchase your metals and leave them in your depository until the age of 59.5. If you liquidate your IRA or 401(k) before reaching that age and don’t roll it over within 60 days, you will have to pay taxes and penalties which vary depending upon the circumstances of the liquidation. You can avoid these charges only if you deposit all withdrawn funds into a new IRA before the 60-day mark.
Q: How long does it take to roll over an existing IRA to a Precious Metals IRA?
A: Typically 10 Days. But, each application is unique and the exact amount of time it takes to roll over varies. Your experienced Gold Bullion Exchange Account Executive will help you gather and complete all of the necessary documents for your rollover, and can also provide you with an estimate for how long your specific rollover will take.
Q: Who is the custodian of my Precious Metals IRA?
Q: Why do I need a custodian to hold the precious metals in my IRA?
A: This is the case with any IRA. The IRS requires that a custodian holds and tracks the assets in an IRA – a Precious Metals IRA is no different.
Q: Who is eligible for a Traditional Precious Metals IRA?
A: Anyone who is under age 70½ and has earned income is eligible for a Traditional Precious Metals IRA.
Q: Can physical gold and silver be deposited into an Individual Retirement Account?
A: IRAs exist that enable the investor to purchase gold, silver, platinum and palladium bullion coins and bars.
Q: Can I withdraw money from my 401k or IRA and deposit it into a precious metal IRA?
A: You are able to transfer funds out of existing retirement accounts, like SEP, Traditional, Roth IRA or 401k and open a precious metal backed IRA with those funds, without penalties or taxes. It is recommended that you consider a contribution of at least $10,000 minimum when opening a precious metal IRA since storage fees may be involved.
Q: What are the tax advantages to purchasing gold, silver, platinum and palladium compared to traditional stocks for a retirement account?
A: No taxes are due or payable upon acquiring a minimum of $1,500 worth of gold. Unlike mutual funds or ETF, you do not receive a yearly 1099B tax form. All silver and gold investment grade coins prior to 1933, are exempt from 1099B reporting at the point of sale.
Q: What types of coins are allowed to be deposited into a precious metals backed IRA?
A: Most bullion coins gold, silver, platinum and palladium bullion bars are acceptable for an IRA. Please call us for a complete list of precious metals that the US government permits to be held in your IRA.