Gold IRA FAQs

Below is a comprehensive list of the gold IRA FAQs (frequently asked questions) that we’ve come across over the last few decade’s. If you have a question about the frequently ask questions list or don’t find the answer you’re looking for please reach out to us at 800-300-0715.

What is not on this list of FAQs?

This list literally takes the most popular questions from the public. It does not cover things that you did not know you needed to ask. For that list please read the 10 Gold IRA Scams Dealers Use On You. This report will save you some serious money when setting up a retirement account with physical metals.

How many Gold IRA FAQs are on this list?

62 FAQs are listed below.

What is a Gold IRA?

A self directed Individual Retirement Account allows you to hold physical gold and other precious metals.

How does a Gold IRA work?

A gold IRA works just like a traditional IRA except that you’re permitted to hold alternative investments in accordance with IRS Rules.

What types of IRAs are eligible to hold precious metals?

If you have a SEP IRA, a Roth IRA, a Simple IRA or just a Traditional IRA, they’re all eligible to hold precious metals permitting your custodian allows it. If they don’t, you can simply transfer IRA account to a self directed IRA custodian that does.

Can I use my retirement savings plan at work to start a gold IRA?

If you have a 401k, 403b, 457b or TSP and you’re still working for the company that set it up you may be eligible to do an “in-service” distribution if you’re over 59.5. An “in-service” distribution allows you to access a portion of your retirement assets even though you’re still working for the company that sponsors your plan. Call our retirement account specialists at 800-300-0715 to determine if you’re eligible.

Can I do a partial transfer of an existing retirement account?

Yes.

Can I combine more than one existing retirement account into a single gold IRA to save on fees?

Yes.

Can I move an existing IRA or other retirement accounts to a gold IRA without tax implications?

Yes. Moving funds between qualified retirement plans in NOT a taxable event.

What is a gold IRA custodian?

A self directed IRA custodian that permits you to hold alternative investments like physical precious metals, real estate and cryptocurrency. Unlike traditional IRA custodians that typically only allow you to invest in stocks, bonds and mutual funds.

How can I find a list of self directed IRA custodians?

Visit our Complete Guide to Self Directed IRA Custodians page.

Who is CGEs preferred gold IRA custodian?

We will work with all 19 custodians but Strata Trust Company in Waco, Texas is our preferred precious metals custodian.

Is it difficult or complicated to set up a gold IRA?

No, in fact it’s very simple. Call our gold IRA specialists at 800-300-0715 and we’ll walk you through the process.

How do I set up a Gold IRA?

1. Establish a self directed IRA with your custodian of choice
2. Fund your IRA by transferring an existing retirement account or making a contribution
3. Purchase precious metals (bullion) for the account from CGE.
4. Store your precious metals at an IRS approved depository

How long does it take to set up a new self directed IRA account?

Your new gold IRA account will typically be established within 48 hours.

What fees are charged by the IRA custodian?

Our preferred custodian, Strata Trust, charges the following fixed rate fees for their precious metals IRAs.

Do I pay the IRA custodian fees out of my pocket?

You can either elect to have your first years fees deducted from your IRA funds or pay them out of pocket.

How do I pay my annual precious metals IRA fees?

Strata will bill you on an annual basis and you can call them and pay over the phone. Or you can complete a Credit Card authorization form which they’ll bill automatically once a year.

Are fees to set up and maintain my gold IRA tax deductible?

Yes.

What does the gold IRA custodian do?

The custodian will help you to facilitate your transactions. They report the balance of your IRA assets to the IRS annually as required. They’ll inform you of any Required Minimum Distributions you must take and the amount. They’ve contracted with IRS approved depositories for the safekeeping of your precious metals.

What’s the difference between an Interested Party and a Designated Representative?

On your self directed IRA application you’ll have the option of electing an Interested Party or Designated Representative should you choose to. If you elect your gold dealer an interested party, it simply allows them to communicate with the custodian about your account without you having to be on the phone. If you elect your precious metals dealer as a Designated Representative they have Power of Attorney on your account. They can buy, sell, trade and move your metal as they see fit without a signature from you to authorize the transaction. Avoid this at all costs. It’s not in your best interest.

Can I put precious metals I already own in a gold IRA?

No.

Can I open a gold IRA with annual contributions?

Yes. But check with your financial advisor as to whether or not this makes sense because of the fees involved.

Why do I need to transfer or rollover my retirement account to buy gold?

Because your current retirement account provider most likely won’t permit you to hold physical metals.

How long does it take to transfer a traditional IRA to a self directed IRA?

Depending on your custodian, transferring IRAs can typically take between 1-2 weeks.

How long does it take to rollover a 401k, 403b, 457b or TSP to a gold IRA?

It depends on your current plan administrator but they’ll typically take between 2-3 weeks to transfer money.

Can I use my Roth IRA to buy gold?

If you already have a Roth IRA and want to buy gold, you”ll have to confirm if your custodian allows you to invest in alternative investments. Here is a list of self directed IRA custodians that do. If your custodian isn’t on that list, you can transfer your account to a Roth gold IRA with Strata Trust very easily. Call our Roth gold IRA specialists for help at 800-300-0715.

Does my spouse have to be my primary beneficiary on the account?

Not necessarily. However if you live in a community property state such as Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington or Wisconsin your spouse will have to sign a release on your application authorizing another beneficiary.

Can I have contingent beneficiaries should something happen to both my spouse and I?

Yes.

Can I leave my precious metals IRA to my church or charity?

Yes.

What happens once my new retirement account has been funded?

You can purchase gold and other precious metals for your individual retirement account.

How do I purchase gold for my retirement account?

Your CGE IRA specialist will help you create a portfolio of physical gold based on your investment objectives. They’ll send you an Investment Direction form containing your transaction details for you to sign to authorize the buy. Upon receipt of funds from your custodian we’ll ship your precious metals to your selected IRS approved depository.

Do I need to invest all the money in my gold IRA at once?

No. You can make multiple purchases at your convenience. But keep in mind that you’ll have to pay a transaction fee for each transaction.

Are there limits on how much gold or other precious metals I can own in my IRA?

No.

What is a buy/sell spread?

The spread is the difference between what the dealer will buy and sell an item for. Be aware of Southern California dealers that frequently charge buy/sell spreads in the 33% range. Don’t get ripped off. Call our gold IRA account specialists at 800-300-0715 for a quote to make sure you’re getting a fair deal.

What are the IRS approved precious metals for gold IRAs?

According to the Tax Payer Relief Act of 1997, certain gold, silver, platinum and palladium coins and bars are permitted to be held in retirement accounts.

• Gold must be 99.5% pure
• Silver must be 99.9% pure
• Platinum and palladium must be 99.95% pure
• Bullion coins must be in perfect Brilliant Uncirculated (BU) condition
• Coins, bars and rounds not minted by the U.S. Mint have to accredited by a reputable refiner, assayer or manufacturer and meet the purity criteria.

What’s better, gold coins or gold bars?

Gold bars tend to be a bit cheaper than gold coins. The larger the bar the lower the premium above the spot price you’ll typically pay. But large bars are not as liquid as gold coins and so they also tend to buyback for significantly less. Very large investors may want to stick with gold bars but for household investors gold bullion coins are typically a better way to go.

What type of precious metals investments should most people hold in their IRAs?

Most investors should hold widely traded bullion items. Such as American Silver Eagles or American Gold Eagles. Canadian gold and silver Maple Leaf coins are another good option.

Is silver a better investment than gold right now?

Silver has more upside potential than gold to get back to their all time high prices. For example, gold is basically at its all time high right now, close to $2,000. But silver has more than 100% upside potential to reach it’s previous high of $50. So many investors prefer silver over gold right now because of the greater potential upside.

Are there any types of precious metals I should avoid?

Yes. Avoid any coins pushed by dealers that they call “exclusive” or “premium”. Those are just fancy terms for items that are hard to price check and are typically grossly overpriced. If someone is recommending you buy an item that you’ve never heard of, call us at 800-300-0715 to make sure you don’t get ripped off.

Does CGE report what I own in a gold IRA to the IRS?

No. At the end of the year your custodian will report the value of your self directed IRA to the IRS. They don’t report on its contents.

How are my precious metals shipped?

Your precious metals will be shipped via UPS or FedEx. If you choose the Delaware Depository, your IRA gold will typically be transferred internally because we maintain an account their as well.

Are home storage gold IRAs legitimate?

The IRS requires that your metal be held at a 3rd party, non-bank depository. Taking physical possession of IRA gold is considered a distribution and taxable income that you’ll have to pay taxes on.

Where are the storage facilities for my precious metals IRA?

There are IRS approved depositories in Delaware, Nevada, Texas, Utah and California.

Will my precious metals IRA be safe at the depository?

Yes. All of the IRS approved depositories have very stringent security protocols. You can view a video of the Delaware Depository and their security measures here.

Are my precious metals insured by the depository?

Yes.

Can I visit my precious metals a the depository?

Yes. If you would like to set an appointment to visit the depository and view your precious metals you can.

Can I change precious metals depositories if I’m not happy?

Yes.

What’s better commingled or segregated storage?

Commingled and segregated storage are both equally secure. Segregated storage is only available for physical gold, palladium and platinum bullion. If you own silver you must store your metal commingled. Segregated storage means that the exact gold, palladium or platinum coins that you acquired are stored in a private safety deposit box in your custodians section of the vault. Commingled storage means that your silver and other precious metals is stored in your custodians section of the vault with other clients metals. If you own American Silver Eagles for example and want to take a distribution of some metal, you will receive Silver Eagles in perfect BU condition, but not the exact same coins you initially deposited.

What if I need to liquidate my precious metals IRA?

If you need to sell gold, silver or other precious metals in your IRA, you’ll need to complete an Investment Direction form. First you’ll contact your CGE gold IRA specialist and request the high buyback quote of the day. Once agreed upon, they’ll forward you the document to sign and date, authorizing the transaction. The complete process will typically take a week to complete. Visit our “How to Sell a Gold IRA” page for the step by step process.

What is CGEs buyback policy?

CGE will perform a nationwide search amongst the top dealers listed in our Price Match Plus Guarantee to confirm with the high buyback of the day is. We’ll then beat that price for you.

Do I have access to the precious metals in a gold IRA?

Unlike traditional IRAs that hold only paper assets, you do have access to the gold, silver, platinum and palladium you may hold within your account. Keep in mind that if you take a distribution of some or all of your metal there are tax consequences.

Can I change metals within my gold IRA?

Yes. One of the tax benefits of traditional gold IRAs is that you can buy, sell and trade precious metals within your IRA funds tax free.

Can I take delivery of the metals in my IRA to satisfy an RMD?

Yes. But remember with traditional IRAs you’ll have to pay taxes on the distribution.

Are Roth IRAs subject to Required Minimum Distributions (RMDs)?

No. Roth gold IRAs are not required to take RMDs.

Are there any withdrawal restrictions in a gold IRA?

Traditional gold IRAs are subject to the same withdrawal rules as traditional IRAs. If you’re over 59.5 you can take a distribution of the complete account any early withdrawal penalties. If you’re under 59.5 there’s a 10% penalty. Roth gold IRAs have certain tax advantages in that you can take a complete distribution of the account tax free once your over 59.5. If under you’ll have to pay a 10% penalty.

What’s the difference between owning a gold ETF and a physical gold IRA?

With a gold ETF you don’t own any physical gold. You simply have exposure to the gold prices. With a traditional gold IRA you own the physical precious metals outright. And if at some point you wanted to take physical possession you could.

Will I receive quarterly statements from the IRA custodian?

Yes.

Will I have online access to my precious metals IRA account?

Yes.

How long should I plan on holding the precious metals in my retirement account?

You typically want to hold precious metals IRAs for 4-6 years depending on market conditions and cycles.

Are gold IRAs safe?

Yes. Unlike traditional and Roth IRAs with mainstream custodians that only hold paper assets, with gold IRAs you own tangible, physical precious metals that have stood the test of time. With 100% ownership of a real physical asset you don’t need to worry about a stock becoming worthless. Prices can fluctuate with metals so please do your research and look at long term gold and silver charts before investing.

Are gold IRAs a good idea?

It depends on what you’re looking to accomplish. For investors that want to protect their retirement savings from economic uncertainty and record high inflation, yes. If you’re looking to safeguard your retirement portfolio by diversifying your traditional investment accounts, well then yes.

Can I buy precious metals outside of an IRA for physical delivery?

Yes. If you would like to hold gold coins personally, outside of your retirement accounts, just call our gold desk at 800-300-0715 and a precious metals specialist can help you. *Please do not construe any of the above information as investment advice or tax advice and always speak to your tax consultant for advice.

How Do I reach the Certified Gold Exchange retirement investments division?

Simple call our gold IRA FAQ desk today at 800-300-0715. Written by Pat Collins and John Halloran