Add Precious Metals to your IRA
Q. Can I invest in bullion through my current IRA?
A. Many IRA custodians are affiliated with an investment supplier and are not willing to handle alternative investments such as bullion. Provided that your current IRA custodian is willing and able to handle precious metal investments (has the proper storage and other requirements), they can administer the investment. KGRCA has partnered with an IRA custodian who is willing and able. Yes, provided the current trustee or custodian is willing to administer the investment. However, many IRA custodians or trustees are affiliated with an investment provider and are not equipped or willing to handle other types of investments. Others may have difficulty meeting the storage requirements for holding bullion for an IRA.
Q. Can I contribute bullion or coins I already own into a bullion self-directed IRA?
A. No. All contributions must be made in cash, except in case of transfers and rollovers.
Q. How do I choose a bullion dealer?
A. Conduct a comprehensive due diligence. Here is what to look for: A well-established firm that has an excellent reputation for expertise within the industry. Ensure that the dealer draws from their own inventory when assembling a portfolio. Select a firm that will guarantee to buy back your portfolio a prevailing market rates. In fact, this should be a standard policy of the firm. This demonstrates the firm’s capital strength and connections necessary for efficient liquidation with the highest profit possible. Transparency – In all aspects of the investing process, from the time you begin your due diligence to ending with liquidation of your portfolio, the firm must provide full disclosure.
Q. What types of bullion can I hold in a self-directed IRA?
A. Click here for a list of allowable bullion.
Q. Why are US Gold Buffalo bullion coins allowed, while US Gold Buffalo proof coins are not?
A. Proof US Gold Buffalo coins are designated as a collectable by the United States Mint. Due to the 1997 Tax Payer’s Relief Act, coins designated as collectable cannot be added to IRAs.
Q. Can I take possession of my bullion after investing?
A. Not while held in the IRA. All IRA assets must remain within the custody of a custodian or trustee of the IRA, which means you may not take custody of the assets yourself or choose your own storage facility. You may, however, take distribution of bullion assets from the IRA at any time, which is a taxable event reported to the IRS and may also be subject to withdrawal penalties. As always, consult your investment and tax advisors regarding these matters prior to taking any action.
Q. Where is the Bullion stored?
A. Bullion IRA assets are deposited with a depository services company. There is a small annual fee for keeping physical possession of your holdings.
Q. Why is there a fee for my bullion self-directed IRA from the custodian?
A. Since the custodian receives no commission from any of your investment actions, separate fees are necessary to cover the costs of maintaining your account.
Q. Where can I find more information?
A. Contact your IRA custodian, or if you are looking for a recommendation, KGRCA works with IRA Services. Click here to contact them for more information.