John Anderson | June 25, 2021
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In a recent survey of investors, it was reported that more than half of the respondents said that investment performance affects their mood.
Are you looking for a way to shield your investments from runaway government spending and a volatile stock market? If so, have you considered investing in precious metals? You will find companies here that we recommend who that are the best gold IRA companies. One of those companies was also voted one of the top companies in the country overall, GoldCo.
Unlike stocks, bonds, and mutual funds that are all tied to the dollar, precious metals stand on their own. When the stock market tanks, the price of gold and silver isn’t affected. In fact, it often rises during these times.
Precious metals are treated as a foundational part of a retirement portfolio. It's a wise decision to have a small percentage of your net worth in gold and silver. These are some examples of well-known businessmen who have shared their gold allocation strategies.
☑ Goldco has an A+ rating with the Better Business Bureau
☑ More than 14 years of experience helping people safeguard and grow their retirement accounts.
☑ Named Company of the Year at the 19th annual American Business Awards
☑ IRA minimum deposits start at $25,000
☑ Offers gold, silver and other precious metals
☑ Ability to start a gold IRA or transfer an existing IRA to a self-directed precious metals account
☑ Work with a precious metals IRA specialist
☑ If you're outside of the USA, there is no overseas depository available
Gold IRAs can be difficult to understand, especially when you haven’t been exposed to this type of investing. The companies we recommend have a high degree of quality information to understand their company and products and they all have the resources to help you understand this type of investment. Moreover, they help you understand how to move 401k to gold without penalty.
We looked for companies that have a history of great customer service and a solid reputation in their area. In an industry that is prone to scams, we found it important to remove any businesses from our list that had a sketchy past or that had received negative reviews from reputable institutions.
A number of companies that sell gold and silver or other precious metals make controversial claims about the profits of precious metal accounts or will inform their potential clients about potential economic disasters or collapse of the stock market. These are companies and their representatives that should be avoided. You want to work with a company that will explain the options they have with gold IRA investing and other precious metals so that you can make a wise financial decision and not make one based on fear tactics.
Custodians are the ones the IRS states must handle all IRAs. Banks and other financial institutions can be considered for custodial duties. Trust companies can also act as custodians.
According to the IRS, these companies:
► Must keep records
► Report to the IRS according to IRS codes
► Send reports to the client
► Release funds for investment purchases as directed by the client
► Make required minimum disbursements
► Handle compliance concerns for the client
Other work that the custodian can perform:
► Provide educational materials on IRAs and investments
► Provide a secure online platform for account management
► Provide recommendations that you deal with particular metals dealers, security companies, and storage facilities
► Startup: The fee charged to open the account. It may also be called the application fee, set-up fee, or something similar. It should only be charged once.
► Annual: The amount you pay each year for the administration and maintenance of the account. This is the custodian’s compensation for keeping records, reporting to you and to the IRS, and more. Sometimes the fee will be charged quarterly instead of annually. It can be a flat fee or it can be a percentage of the asset’s value.
►Brokerage: A percentage of what you pay for a metal that is profit for the one who sold it to you and/or the one who recommended the metal company to you. Only some trust companies benefit in this way from the metals purchases; many keep themselves separate from the sales process.
►Shipping and storage: The cost of securely shipping and storing the metal in an IRS-approved, secure facility. These companies are usually separate from the trust company, but they are often paid through fees gathered by the custodian. These fees may be included in the annual fee.
►Transaction/services: Each company chooses which transactions and services are covered by the annual fee and which merit a separate charge. The following often come with a transaction fee: outgoing wire transfers, checks, cashiers checks, transfer out and closing fees, stop payment fees, IRS reporting corrections, and more.
Company recognized as GOLD STEVIE® AWARD WINNER on April 29, 2021
In excess of 250 professionals from around the globe took part in the judging process to select this year’s Stevie Award winners. Some of their comments about Goldco’s achievements over the last year included recognition for the company being “an excellent firm which offers customers exemplary service for those who are interested in diversifying their retirement portfolios.” They concluded that “investing for retirement can be complex and uncertain, but it doesn’t have to be with Goldco.”
Best Company in Transparency
Known for customer service that exceeds expectations, Augusta Precious Metals helps to educate their clients in their retirement choices using physical gold and silver as a IRA alternative to investing in the stock market to give them peace of mind.
Fees are waived in the first year
Regal Assets can assist their clients in both gold and crypto-currency IRA rollovers. They have low annual fees with outstanding customer service and support. The maintain an A+ rating through the Better Business Bureau and have a 4.9 rating out of 5 in customer reviews on Trust Pilot.
Best company in empowering clients
When you contact the company, you will be given an investment specialist to work with who will go over the stock market and how it can impact gold prices, precious metals and your IRA. They empower you to make educated decisions about your retirement objectives and to assist you to completely understand what is possible and the associated risks with any investment.
There are a number of details involved with holding a gold IRA.
The Internal Revenue Service (IRS) has listed the rules they have laid out regarding retirement investments that must be followed.
The most important factor for meeting IRS regulations is that the gold must meet to a purity grade of 0.995 or higher. Anything less cannot be considered for a gold IRA investment. The current list may have changed, but they include the following gold coins and bars:
As with any investment, the IRS has guidelines of how IRAs, including gold IRAs, are started and managed. This is an overview of some key aspects for gold IRAs.
You must use an administrator who works with precious metals and is also approved by the IRS to open a gold IRA. Even though you direct it personally, administrators (brokers, custodians, etc.) are still necessary to act on your behalf.
Gold and other precious metals that make up an IRA require storage in vault facilities approved by the IRS. Due to the chance of fraud or theft with precious metals, the IRS will only allow storage facilities that it has approved to be used in IRA account. So it was that only six depository vaults in the United States were approved to store the these gold bars, silver, coins and other precious metals in retirement accounts.
These six approved storage vaults account for nearly all of the gold, silver, platinum, and palladium contained in the precious metals retirement accounts around the country. Yet recently, the IRS has amended this rule to allow for gold IRA be stored outside of the USA, but they still need to be approved by the IRS.
IRA precious metals are still usually held in one of six IRS approved depository company vaults. These companies include the following well-known and imminently trusted institutions:
◎ Delaware Depository
◎ Brinks Security
◎ HSBC Bank USA
◎ JPMorgan Chase Bank North America
◎ Scotia Mocatta
◎ CNT Depository
Actual possession of the gold on your part is deemed a distribution by IRS, which means they are subject to taxes or penalties.
Taking physical possession of the gold are subject to income tax at the point of withdrawal. Early distributions see a levy of 10% unless it falls under a predetermined exclusion (see below). Profits can see further assessments via capital gains tax.
Gold IRA contribution limits are $6,000 per year, increasing to $7,000 annually once you turn 50 years of age.It can be funded via rollover or with a purchase made through your administrator.
Access to your gold IRA are restricted to age 59½, although you are under no requirement to start taking distributions at that age. You will, however, have to take distributions beginning at age 70.
Early Withdrawal Limitations
We use the word limitations because while there is a 10% penalty for early withdrawal, there are a number of exceptions to the rule, including:
◎ IRA owner becomes disabled or is hospitalized without means to pay the medical bill.
◎ IRA owner dies, and their beneficiary requires access to the funds.
◎ IRA owner loses employment and needs access to funds.
◎ IRA owner wants to purchase a new, first time home (can use up to $10,000) or fund a family members education.
As we identified earlier there is a limit to the precious metals included in your self-directed IRA.
The IRS stipulates a minimum purity requirement for gold of 0.995 or 24 carats, which you can find in a limited number of products.
As we noted earlier, gold IRAs are self-directed, meaning the individual investor has more direct control over the account and can include a broader range of investments in the account than a traditional IRA.
However, when dealing with gold, you will require the services of a broker to purchase the gold and/or a custodian to serve as the account administrator.
This is one area where investing with metals can get tricky. Custodians are federal or state-approved agencies such as banks, brokerage firms, credit unions, savings and loans, or trust companies that serve as asset-custody providers.
In other words, these services facilitate safekeeping of the securities and management of the account for the individual investor. They do not, however, directly sell the gold to the clients.
The acquisition, or the identification of the dealer, falls to the actual investor. Due to the nature of the gold market, though, many custodians are likely to have recommendations for preferred dealers or vice versa.
The choice for both though remains with the investor. Unfortunately, when dealing in gold, not everything is black and white. Precious metal investing is highly specialized, and scams are prevalent.
To ensure you make a sound investment, you'll need to conduct plenty of research as to which firms will best fit your needs.
In regards to finding the right companies to deal with, look for transparency - both in how they conduct themselves and the fees involved in their stewardship or the acquisition of the gold.
You want your investment to make money, not lose it.
Reputation in the gold market is equally as important.
Review third party ratings and consumer reviews to find the ones that add up to a good overall experience.
Frequently Asked Questions
Do I need a custodian to administer the precious metals in my IRA?
Yes. The IRS requires that a custodian administer and track all of the assets in an IRA – that includes a Precious Metals IRA.
How long does it take to roll over a traditional IRA into a Gold IRA?
It takes on average about two weeks. The application process is different for each person and the exact amount of time it takes can vary.
Can I put the gold I already have into a Gold IRA?
No. Collectible items are not allowed to be put into an IRA. Only certain U.S. gold coins (one, one-half, one-quarter, or one-tenth ounce, or one-ounce silver coins minted by the Treasury Department). There are some platinum, gold, silver, palladium, and platinum bullion coins that are allowed as well. The IRS has a document of what can be included in a precious metals IRA as an investment.
Are there any fees or penalties for transferring my IRA or 401(k) to a Gold IRA?
No. An IRA rollover is a common, tax-free process with no fees or penalties. You can rollover your current IRA to a new IRA whenever you want, as many times as you like. The only stipulation is that the funds need to be deposited into your new IRA account within 60 days.
What other types of accounts qualify for rollover to a Gold IRA?
The most common types of retirement accounts are a 401(k) and a 403(b). These types of accounts are for public employees and employees of tax-exempt organizations. Other types that qualify are a Pension Plan, Thrift Savings Plan, TIAA CREF, 457 Deferred Compensation Plan, or a non-traditional IRA.
Are my gold, silver, and other precious metals safe while they are in my IRA?
Yes. The IRS has rules on how precious metals IRA accounts must be managed. They must be maintained by a depository and administered by a custodian who is a financial institution.
When can I take possession of my gold and silver?
The owner is able to take physical possession of the precious metals when owner reaches age 59 1/2 years of age. That is the time when he or she becomes eligible to take qualified distributions.
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