Top 4 Gold IRA Rules You Need to Know Before Investing

Gold IRA Rules and Regulations

If you are thinking of opening a gold IRA, you have to remember that your account has to operate within a fixed set of regulatory rules. There is a lot of regulation in the financial market. There has to be. Otherwise people would get ripped off left and right. While this protects consumers, it can also make it a little bit harder for investors to make heads or tails of the gold IRA market. With that said, you really need to make sure that you are up to speed on the fundamental gold IRA rules that are governing your IRA account. Otherwise, you might run headlong into potential issues down the road. Talk about learning things the hard way. If you fail to follow any of these fundamental rules, you might find out that the benefits and advantages you wanted to get from opening a gold IRA in the first place are not there. This is just the worst way to pay for a bad decision. It is one thing to see the advantages of starting a gold IRA, it is another to thoroughly research the relevant rules and regulations regarding gold IRA accounts so you can fully benefit from it. Gold IRA rules exist for a reason. They are not there to give you a hard time. They are not there to deprive you of your hard earned money later on. They are for consumer protection. Unfortunately, if you do not abide by the rules, they can bite you. That is just how it works. For a rule to protect you, it has to have consequences. If you disregard gold IRA rules, it can definitely bite at least in your wallet if not your ego.

IRA gold must be held with a qualified custodian

The most basic rule when it comes to investing in gold for your IRA is that your IRA gold must be held with a qualified IRA custodian. This is the most basic of gold IRA rules. This protects you because you need to park your funds with somebody who knows what they are doing. At the very least, they know enough to protect your funds. They can not protect your funds from bad market conditions. They can not protect your funds from going down in value. However, they can protect your funds from illegal transfer or any other type of fraud. This is the most fundamental of gold IRA rules because if you comply with this you are going a long way in protecting your assets over the long term.

Only government made coins are allowed

If you are interested in investing in gold coins, you have to be very careful. There are some private mints in the world. These private mints produce gold coins strictly for collector value. The problem with these mints is that there is no government guarantee that the amount of gold their coins contain is real or accurate. It is anyone’s guess how much gold these mint’s gold coins actually contain. You do not want to find out the hard way that you have been investing in supposedly ninety percent gold coins and it turns out that you are just investing in gold plated coins. Talk about a massive hit to your pocket book. This part of the gold IRA rules is intended to help you benefit from stringent government rules regarding gold purity. Government mints are backed up by their governments. How? Each and every gold coin or coin made out of precious metal minted by these entities are guaranteed by their host governments. For example, the United States government guarantees that their gold eagle coins have a certain level of purity, otherwise you can collect any loses from the U.S. government. That is a powerful guarantee. This is why gold IRA rules stipulate that only government made coins can be stored in gold IRA accounts.

All bullion coins must be ninety nine percent pure to be eligible for tax deferment advantages

One of the biggest advantages of opening an IRA account in the United States is that you are not taxed when you put your money into the account. The tax comes when you take money out of the account. This is a great advantage because IRA reduces your income. So when you have a reduced income, you pay less taxes. Not only do you get tax advantage, the money that was used to reduce your income can then grow if you invest it in IRA. However, to get this tax advantage, any bullion coins that you invest in must be at least ninety nine percent pure. This is a fairly strong rule to prevent fraud and abuse of the IRA system. Think about it. If people can store gold that is only one percent pure in the IRA portfolio, there is all sorts of valuation issues and possible fraud. So, to minimize all that headache, the U.S. government has stipulated that all bullion coins invested in gold IRA accounts must be ninety nine percent pure or higher. The great thing about this is the price is predictable. You know when you bought the gold. You know the price of gold at that time. If the purity is lower, then there is all sorts of guess work and all sorts of slippery maneuvers regarding accounting. That is the last thing the U.S. government wants, especially when it comes to an instrument that basically takes tax money off the table. That is precisely how a gold IRA works. Your income is sheltered from current taxes because your income is actually reduced by the amount of money you invest in your personal gold IRA.


Withdrawals can only be done without penalty at age fifty nine point five. As mentioned above, your IRA assets will only be taxed when you take the money out. It is back loaded when it comes to taxes. However, you only get this protection if you withdraw at the age of fifty nine and a half. If you withdraw earlier, there is no tax advantage. Most importantly, there is also penalty. So, the whole point of the gold IRA, and all IRAs in general, is to help Americans plan for their retirement. The whole purpose is defeated when people are allowed to withdraw it anytime.