“Even accountants,” says The Wall Street Journal’s ‘Smart Money,’ “can’t keep track of the rules for IRA contributions.” The U.S. government, via the Internal Revenue Service, has come up with many regulations to control investments in Gold IRAs. It’s up to each individual investor to make sure these regulations are followed, especially if their Gold IRA is self-directed, and not handled by a trustee.
Approved Gold and Silver Coins
Although only American Gold Eagles and their companions, Silver Eagles, are specifically listed as approved investments for precious metals IRAs in the United States, there are other forms of gold and silver that became acceptable in 1997. These include any coins that are legal tender and rank at least 99.5% pure. The Canadian Gold Maple Leaf, Austrian Philharmonics, Perth Mint Lunars, and Australian Kangaroo Nuggets are a few of these. On the other hand, the popular Krugerrand, at a purity of only 91.67%, and the 90% pure gold coin called the Double Eagle would not be considered legal precious metals investments in a precious metals IRA.
Some gold bullion bars that are of a certain high purity are also IRS-approved to be put into Gold IRAs. The list includes one-kilo bars, which are seen globally as a liquid medium for trading; gold bullion bars weighing up to ten grams; gold bars of up to ten ounces; and the Suisse PAMP and Credit Suisse gold bars and gold bullion bars.
The IRS prohibits investors from including physical gold and silver coin assets in their IRA accounts. The gold must be managed, not by the owner, but by his or her IRA trustee. If the investment is in gold coins, they must be stored at an IRA-approved depository, maintained separately from the Gold IRA’s custodian.
Rollover Gold IRA Accounts
The investor can operate a “self-directed” IRA, or turn the management of a Gold IRA over to a professional IRA custodian. If the investor presently owns an IRA account, it can be rolled over into a Gold IRA, but there are certain IRA accounts that may not be set up to accept a gold rollover. Ask your IRA trustee or custodian whether you have to start a brand new precious metals IRA, or if your current account can be used.
CMI Gold & Silver: http://www.certifiedmint.com/ira_investments.htm
Smart Money: http://www.smartmoney.com/Personal-Finance/Taxes/What-Are-Your-IRA-Options-9563/
Northwest Territorial Mint: http://bullion.nwtmint.com/articles_ira.php#thelist