Thinking about a gold IRA? Here's what you need to know first.
A gold IRA can add precious metals to your retirement plan, but there's a lot to consider before opening one.
A gold IRA is not a simple addition to an existing retirement account such as a 401(k) or traditional brokerage IRA. It is a self-directed IRA that requires the individual to choose the custodian, dealer, and specific products, ensuring compliance with IRS rules. A gold IRA is subject to strict purity standards requiring the gold to be at least 99.5% pure.
Some common gold bullion like American Eagles and Canadian Maple Leafs qualify, while collectible coins like Krugerrands typically don't. Storage of gold IRA assets is mandatory and must be done by an approved custodian in an IRS-approved depository. The costs associated with a gold IRA include setup fees, annual custodian fees, storage fees, and markups on the metal itself.
Unlike traditional IRAs, gold IRAs may also have additional fees for liquidating holdings. Financial advisors typically suggest limiting the allocation of gold in a retirement portfolio to a modest portion, appreciating its volatility.
Written by urgent.news from CBS News's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
