Precious Metals IRAs & How Does It Work?

1/1/2016

A Precious Metals IRA is a self-directed Individual retirement account which allows for certain non-traditional hard assets, such as Precious Metals. 

The IRS has parameters in place to maintain the tax benefits and integrity of your Precious Metals IRA. Your bank or brokerage account IRAs are governed by the same rules. It's just not as obvious to the individual, since they deal in paper or electronic certificates.

  1. A Third Party Administrator (TPA) must oversee the accounting and any subsequent reporting functions, as well as money and product transfers into and out of your account. 
  2. Your metal must be stored off-site at a secure registered depository. 

What are the benefits?

  • It is treated the same as any bank or brokerage IRA account for tax purposes
  • It can be a Traditional IRA or Roth IRA
  • Precious Metals are a traditional offset to declining values in currency, 'a hedge against inflation'

What are the risks?
  • Precious Metals are considered unregistered securities. As such, there is less oversight than registered securities such as stocks, bonds, etc.- Choose your dealer carefully.
  • Product Pricing and Handling Fees
  • Market volatility during economic uncertainty vs. a flat market during economic stability

How It Works
  • Your broker or dealer will coordinate the initial account set up and funding of your IRA with a Third Party Administrator, as required by the IRS.
  • You purchase the products for your account from the broker/dealer
  • The broker/dealer coordinates the delivery of your products to the TPA's registered depository
  • The TPA sends you statements at regular intervals
  • Any future transactions to buy or sell are handled the same way. Note: If you request delivery in part or all of your account holdings, the IRS will treat this as a distribution at the market value on the day the transaction is executed

Choose
  • Traditional IRA
  • Roth IRA

Fund Your Account
  • Contribution - Send payment from your bank or brokerage account to the new Precious Metals IRA account.
  • Rollover - Employer sponsored 401k, 403b, pension or profit-sharing plans do not allow rollovers while you are employed with that company. Once you are no longer with the company that sponsors the retirement plan, you are free to roll it over, in part or in full, into an IRA of your choosing.
  • Transfer - In full or in part, an existing Traditional IRA or Roth IRA. Stocks and Bonds cannot be transferred, they must be liquidated prior to transfer.

Choose Your Product
    • Gold - .995
    • Silver - .999
    • Platinum - .9995
    • Palladium - .9995
    • American Eagles (1986-Present)
  • Certain Semi-Numismatic Items
    • Proof American Eagles (1986-Present)
    • Proof Silver World Bullion Coins - .999
    • Proof Platinum World Bullion Coins - .9995
    • Proof Palladium World Bullion Coins - .9995

The content on this page is for informational purposes only. While The Roamin Roman, Inc. can facilitate the Self-Directed Precious Metals IRA on your behalf, this is not a solicitation or guarantee of whether it is appropriate for you. Check with your financial professional to determine if Precious Metals is an appropriate asset for your risk tolerance and goals. For more information read  the following IRS Publications 590-A Contributions to Individual Retirement Arrangements and 590-B Distributions from Individual Retirement Arrangements at IRS.GOV.