A gold IRA is a special type of retirement account that allows you to buy and hold physical precious metals within the tax-advantaged confines of an individual retirement account. This form of alternative investing can help diversify a traditional portfolio, but it takes more due diligence and work to set up than an IRA that holds traditional assets such as stocks and bonds. It also requires working in conjunction with a precious metals dealer, custodian and depository, as well as arranging for the delivery of the actual physical assets. This process can lead to higher fees compared with traditional IRAs, and it can be a challenge to find a gold IRA company that offers competitive pricing on purchases, does not charge ancillary fees and provides customer service that is both transparent and helpful.
There are a few different kinds of gold IRAs, but they all follow the same regulations as traditional IRAs. These include specific funding requirements, contribution limits and penalties for early withdrawals. A gold IRA can be set up as a pre-tax IRA, Roth IRA or simplified employee pension (SEP) IRA. A gold IRA can be used for any type of precious metal, including bullion and coins, but it cannot hold traditional investments like stocks and bonds. This is because precious metals do not produce cash flows, so they can only appreciate in price, which is a very volatile investment.
The best gold IRA companies have low fees, track records of transparency and accountability and world-class customer support. They don’t use high-pressure sales tactics, and they offer a comprehensive breakdown of potential charges. They should be able to explain the benefits of a gold IRA and provide unbiased educational resources. They should also have a robust and secure depository and a buy back guarantee for all of their products.
A good gold IRA company will work with reputable custodians that are compliant with IRS regulations and have a reputation for providing top-notch customer service. A custodian that works with a large number of investors is more likely to have an experienced staff and a reliable system for tracking the location and condition of your precious metals. They should also have a high degree of security for their storage facilities, which should be independently audited.
Some of the better gold IRA companies will allow you to choose your own custodian, but some will encourage you to go with their preferred partner. This can create a perverse incentive to push you to use one of their partners, so be sure to evaluate multiple options before making your decision.
A solid gold IRA company will offer competitive prices on purchases and a guaranteed buy back at the spot price, as well as no ancillary fees. It will also have a high BBB rating and be a member of the Business Consumer Alliance. It should also have all of the proper licenses, registrations, insurance and bonds required to protect your assets.