Owning Gold in IRA: A Step-by-Step Guide

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Long-term investments will help you have comfortable retirement years and even protect your family’s future.

In 2020, Forbes reported that gold is the best investment worldwide, which seasoned financial advisors and other experts, like Augusta Precious Metals, highly support.

That’s because of its many benefits, such as an effective hedge against inflation and a reliable store of value.

That said, one they highly recommend is owning gold in IRA because you are assured you’re investing in authentic or high-quality physical gold.

Owning Gold in IRA: The Six-Step Process

Although we have different definitions of success, not preparing for your retirement as early as possible is a common issue.

What’s worse, most aren’t even aware of the problem until they are nearing the age of retirement.

How much you will need to save for retirement depends on several factors, so it’s best not to rely on employer-sponsored plans and your personal savings account.

Generally, gold IRAs are types of retirement accounts that let you invest in gold bullion assets.

You can invest up to $6,000 for 2022 and $6,500 for 2023. You can then add $1,000 more if you are already 50 years old and above at the time of purchasing gold.

If you want to own amounts of gold bullion under your name, there are six steps you need to take:

  • Open or Sign Up for a Gold IRA Account
  • Find an IRS-Approved Custodian or Trustee
  • Fund Your Gold IRA
  • Calculate Gold IRA Fees
  • Buy IRA-Approved Gold
  • Choose an IRS-Approved Depository

Step 1: Open or Sign Up for a Gold IRA Account

The first thing you need to do is open an IRA account. Look for a financial institution like a bank that offers gold investments or open one with gold IRA companies.

They will be responsible for streamlining the account opening process, so expect to pay a setup fee.

Step 2: Find a Licensed IRA-Approved Custodian or Trustee

A trustee or custodian is a financial institution that performs administrative duties and investment activities required by the Retirement Industry Trust Association (RITA) on your behalf.

They make sure you don’t run afoul of any self-dealing, self-directed gold IRA tax regulations, giving your IRA a good standing with the IRS and maintaining its tax-deferred status.

However, keep in mind that not all trustees, custodians, or even brokers can’t open and operate gold IRAs.

That is even if they offer mainstream IRA services for those who want to invest in traditional assets, such as mutual funds and stocks.

You can use the RITA website to find one and narrow down your choices by comparing their track records, fees, accountability, transparency, and customer support.

That said, most IRA companies will provide you with a list of recommended trustees or custodians.

From there, you can choose the best one that will work for your needs and preferences.

Step 3: Fund Your Gold IRA

Of course, you need to put money in your account to buy and claim ownership of gold assets.

There are many ways to fund your gold IRA, and you are allowed to elect or use more than one of the following choices:


Depositing cash in your IRA account is one of the ways to buy an asset of gold. However, we highly recommend that you avoid doing so if you can.

The main reason is that you’ve already been taxed on that money, defeating one of the benefits and purposes of using an IRA as an investment vehicle.


An easy way to fund your gold IRA is to roll funds from your existing conventional retirement savings account, Thrift Savings Plan, 403(b), 401(k), or 457(b).

All you have to do is contact your retirement plan’s administrator and inform them that you want to roll over a specific amount to your gold IRA.

Note that you are only given up to 60 days to get the withdrawn retirement funds into your new gold IRA account if you are less than 59.5 years old.

Otherwise, you will pay a 10% penalty fee due to early withdrawal and an income tax on the withdrawn amount.


This method is the best option because it allows you to use your American dollar that hasn’t been taxed yet.

It also prevents the caveats of possibly paying income taxes and early withdrawal penalty fees when using the rollover method.

That’s because the transaction is between the two institutions: the financial institution keeping your money and the gold IRA custodian.

is owning gold in ira worth it?

Step 4: Calculate Gold IRA Fees

Expect that you will need to pay the gold IRA company setup, maintenance, storage, and insurance fees since they will manage and secure your investment.

If you don’t find it on their website, you would need to contact them. Some might claim they don’t charge anything, but you have to clarify this.

The custodians, storage facilities, and insurance companies definitely charge an annual one-time fee for their services.

Knowing how much you need to pay monthly or annually will help you determine how much you can afford to invest without having problems paying the corresponding fees.

Step 5: Buy an IRA-Approved Gold

This step is crucial because you can’t just buy any gold bars or coins; you have to make sure they meet the standards set by the IRS.

Plus, your chosen custodian won’t be held liable for the gold seller or broker you chose to transact with when purchasing your gold investment.

In terms of eligibility, the gold should be at least 99.5% pure.

Another is that the gold producer should either be a refiner, manufacturer, or assayer with the following:

  • A national government mint
  • ISO 9000
  • LBMA
  • LME
  • LPPM
  • NYSE/Liffe
  • NYMEX, or
  • TOCOM certification

The gold should also be in brilliant condition or free from any damage. The other crucial eligibility conditions are as follows:

  • Bullion Gold Bars: The bars should be uncirculated and produced to the exact weight specifications.
  • Bullion Coins: These should come in their original, damage-free mint packaging and with their certificate of authenticity.

Note that you also can’t purchase gold collectibles and British Sovereign or South African Krugerrand gold coins for your gold IRA.

With all these rules in mind, choose a licensed broker offering these types of gold assets or the ones your chosen custodian recommended.

You can purchase one-tenth, one-fourth, one-half, or one ounce of gold from them.

Step 6: Choose an IRS-Approved Depository

As per IRS rules, you can’t keep the physical gold wherever you please, such as in your vault or any bank’s safety deposit box.

You would need to find a gold bullion depository institution with IRS accreditation.

The most famous ones are CNT Depository, Delaware Depository Service Company, HSBC, and JPMorgan Chase.

Choose one that works best for your needs and preferences.

How Augusta Precious Metals Can Help

Augusta Precious Metals company
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The steps you need to take in owning gold in IRA can be overwhelming. You have to do thorough research to find the right brokers, custodians, and storage facilities.

The good news is Augusta Precious Metals can make the process a bit easier for you.

They are one of the major brokerage firms in the US that also offer investment advisory services.

They will help you better understand gold IRAs, diversify your portfolio and savings, and teach you how to hedge against the looming hyperinflation and economic collapse.

Apart from being a broker and comprehensive advisor, the company has reliable and established custodian and storage facility partners.

It will even ship and transfer your purchased gold assets to the facility you have chosen free of charge.

It goes without saying that Augusta will do most of the heavy lifting for you.

All you have to do to get started is to follow four simple steps to receive the guide they have prepared for you.

Once you decide to purchase gold from them, you will be assigned to an agent and an expert who will share with you crucial economic information.

After completing all the necessary paperwork, a product professional will assist you in building your portfolio.

Then, you can expect a phone confirmation from them before finalizing your order.

Investing in Other Assets: Your Best Options

Gold IRAs are an excellent choice for retirement investments because gold prices are either stable or don’t usually reach a critically low point.

However, during uncertain times, especially with inflation, looming recession, and economic collapse, you need to have other investments.

This way, you can withdraw funds as and when the need arises. Here are some of your top options:

Physical Precious Metals

Unlike with the gold IRA, owning physical gold, silver, platinum, and palladium is an excellent alternative investment option.

Just keep in mind that you would need to pay certain taxes for these assets. Nonetheless, long-term gains will far outweigh the taxes you’ll pay.

That said, consider purchasing coins instead of bars.

This way, not only can you sell them in the future, but you can also use them for trading, just like how people used them centuries ago.

You can even use them to purchase other assets like real estate and land.


Speaking of land, this asset is also a long-term investment.

Remember that no one can make more land; there is a limited supply, so its value increases over time.

You can leave it as is or use it as another source of income, especially if you have money to spare to improve it and buy several items you’ll need.

For instance, you can rear some farm animals you can sell for their meat and eggs.

If it is an agricultural land, you may grow fruits and vegetables for personal use or for selling.

If you succeed, you can give other people jobs and establish a business your children and grandchildren will benefit from today and in the future.

Real Estate Assets

Did you know you can also purchase real estate assets through your IRA?

By assets, we don’t mean purchasing a home you and your family can live in or rent out.

It’s like buying shares. It is an ideal investment that those nearing retirement will mostly benefit from, as they can maximize returns while minimizing risks.

FAQs About Investing in Gold IRA

1. How will I know the status of my investment?

Understandably, you would want to check on the precious item you have invested your hard-earned money in.

Don’t worry; storage facilities allow you to view your investment. All you need to do is call them to set an appointment.

Similarly, your custodian will send you a quarterly IRA statement to give you an idea of how well your investment is doing.

2. How can I liquidate my gold IRA?

Whether you liquidate your investment at the required time or earlier, you can take the gold out of your account and sell it.

You may also let the custodian’s authorized seller sell it and take the cash instead.

Just remember that you would need to pay an early withdrawal fee if you do so before reaching the age of 59.5.

3. What happens to my Gold IRA if I die?

Like any other investments, your account and all the assets in it will be transferred to your declared beneficiary or beneficiaries.

The good thing is that you can also include your church and a charity you support as one of your beneficiaries. You may also update your list at any time.

4. Can I change metals within my Gold IRA?

The IRS allows you to invest in silver with 99.9% purity and palladium and platinum with 99.5% purities.

You can open a different IRA for each metal, but you can also change the metals within your gold IRA.

You can choose to swap, transfer, or trade without any tax implications.

Ownership of Gold in IRA for a Brighter Future

Now that you own gold assets in your IRA, all you have to do is let your investment grow and withdraw or liquidate it when you reach the age of 59.5 or even at a later age.

While waiting, consider investing in other assets like physical precious metals, real estate, and land you and your family can rely on for future funds.

This way, you won’t have to withdraw funds from your IRA before your retirement.

If you want to make the process easier and are unsure of what you need to do to diversify your portfolio, consider seeking the assistance of Augusta Precious Metals.

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