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football predictions app:Gold IRA best practices investors should know

Investing in physical gold bars and coins can be a good way to gain direct access to the value of gold over time.  Getty Images/iStockphoto

If you're considering buying gold today and your investment plan is focused on saving for retirement, you might want to choose a gold IRA. Investors can use this type of self-directed individual retirement account to store physical gold for retirement — and gain all the tax advantages of a regular IRA.

But any investor thinking about opening a gold IRA can benefit from knowing the requirements and benefits to best maximize this account. Before you invest, make sure you do your research to understand how to best use a gold IRA to meet your retirement goals. Start learning more about gold investment options today with a free information kit

Gold IRA best practices investors should know

Use these best practices to make the most of your gold IRA and ensure your account meets IRS requirements. Here's what to know:

Choose the right type of gold

In order to use a gold IRA for your gold investment, you'll need to make sure you buy IRA-eligible gold. Typically, gold is classified as a collectible, which may not be held by IRAs. But gold (and other precious metals, like silver) can also be forms of currency. 

As a result, the gold bars and coins you buy must meet certain standards for you to keep them in a gold IRA. You can find the specifics on the IRS website, but these include gold of specific standardized weights, purity of at least 99.5% and in some cases, produced by approved mints.

Start exploring more details about gold investing with a free investors kit now.

Know your storage options

In addition to certain types of gold, the IRS also restricts where you may keep your gold IRA. You may not store the gold in your gold IRA at home. Instead, you'll need to work with an IRS-approved bank or nonbank custodian.

This custodian will help you manage and store your gold investment — but storage does come at a cost. You should be prepared to pay ongoing annual or monthly storage fees as well as a potential account setup fee. These may be flat fees or a percentage of your gold assets. Keep these fee amounts in mind when you're deciding how much to invest.

Keep up with contribution and withdrawal rules

Because your gold IRA is still a form of individual retirement account, you should stay aware of contribution limits and withdrawal requirements determined by the IRS each year.

Right now, total IRA contributions total $6,500 for 2023, or $7,500 if you're age 50 or older. You can begin withdrawing from the account after age 59 and a half, and you'll be required to take minimum distributions starting at age 73.

Before choosing your account, also make sure you decide whether a traditional, Roth or SEP IRA is best for your investment goals. Each of these account types offers different tax advantages that could make a difference in your overall value when you're ready to withdraw.

Consider working with a gold investment company

A good way to ensure you meet all the requirements of a gold IRA is by working with a reputable gold investment company. These companies can help you buy IRA-eligible gold and set up storage with an eligible custodian. Because buying gold for an IRA can be much different from other investment types, this could help simplify the process for beginners

Before you sign up, make sure to look for customer reviews and review the company's information yourself to assess whether it's trustworthy — without any red flags or false promises. You'll also want to make sure you review the fees you could take on, and make sure the cost is within your budget.  

Find out more about your gold investment options with a free investment guide today.

The bottom line

If you're thinking about investing with a gold IRA today, it pays to do your research before you buy in. These accounts have specific requirements that can make them more complex than other types of gold investing, like buying physical gold bars and coins or gold stocks. But they can also have advantages for retirement-focused investors. Understanding the types of eligible gold, storage requirements and IRA restrictions can equip you to make the most of your investment long-term.

Consider speaking with a trusted expert, like a tax or financial advisor, who can help you understand all the details about gold IRA investments — and how a gold IRA may fit into your overall investment plan — before you buy.

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