Can I Take Physical Possession of Gold in My IRA?

Many people who open precious metals IRA accounts ask, “Can I take physical possession of gold in my IRA?” Unfortunately, the answer to the question is “no.” The Internal Revenue Service does not allow people to physically possess gold if they want to receive the tax benefits that go along with an individual retirement account.

The reason for the regulations is that the IRS classifies gold coins as collectibles rather than an investment, except in situations where the gold is high-purity bullion, and a bank or authorized dealer has physical possession of it. This regulation does not apply to some coins. Understanding these regulations can save you from unexpected penalties and tax liabilities.

Can I Keep Physical Gold in a Safe?

“Can I take physical possession of gold in my IRA if I withdraw the gold?” Absolutely.

The rule does not prohibit you from buying gold and storing it in a safe on your property. However, if you take possession of it, the tax law treats it as a withdrawal from your IRA.

The rules for taxing collectibles are different from the rules for investments. You might face capital gains taxes on the collectible assets and early withdrawal penalties from the IRA.

So you can keep collectibles such as art, sports paraphernalia, and coins at home, so long as you carefully distinguish these assets from your investment in your IRA.

Why Does the IRS Care What I Put in My IRA?

an irs agent reading and approving documents

“Can I take physical possession of gold in my IRA and still get tax benefits?” No.

The IRS established individual retirement accounts to encourage people to save money for retirement and not rely on social security for support when they reach retirement age. The IRS wants the assets you put in the account to have a clear market value.

If you need to find out the value of a share of stock, a piece of real estate, or a bitcoin, you can check its market value. Gold, silver, or different types of precious metals have value as commodities.

A collectible does not have a fixed value. When a piece of artwork or jewelry goes up for auction, its eventual selling price depends on the interest it evokes from the attendees on that particular day. Likewise, a painting or a collectible coin could sell for millions one year and fail to sell the next due to changing tastes.

The IRS only allows precious metal bullion that people value for its metal content in IRA accounts and not its value to coin collectors. Collectibles, even gold items, incur taxes separately from your IRA and other tax-protected investments.

The IRS has rules against “self-dealing.” Your IRA, even a self-directed IRA, remains separate from your other assets. If you take possession of those assets, you now act as the caretaker for your gold, essentially doing business with yourself. As a result, the IRS requires that an authorized third party oversees your gold.

The gold in your IRA must remain in a storage facility that meets IRS requirements for the exemption from the regulations on collectibles.

How Do I Know if My Gold Is at a Bank or an Approved Non-Bank Trustee?

Before you set up a gold IRA or other precious metal IRA with any investment group, ask about the facility they use to store physical gold. The Oxford Gold Group partners with the Delaware Depository and the Brinks Depository to keep your precious metals secured and serve as a trustee by taking custody of your gold until you wish to withdraw it when you retire.

What if I Want To Take Possession of My Gold Anyway?

Before you can take physical possession of the gold in your IRA, you will need to withdraw that gold from your retirement account. If you have a Gold or Silver IRA account with The Oxford Gold Group, you can physically withdraw the precious metal. We will deliver it to your address.

You also have the option of withdrawing the value of your precious metals in U.S. dollars. Gold bullion has a known value based on the spot price of gold, so selling your gold is straightforward compared to selling collectibles.

What Can I Do if I Want To Invest in Gold With an IRA?

gold bars on top of a white cloth

Gold investments are only eligible for IRA tax breaks if a custodian that the IRS authorizes has possession of your physical gold. If you open an account with The Oxford Gold Group, we will store it at one of two storage facilities, the Brinks Depository or the Delaware Depository.

If you already have an IRA, we can help you roll over your existing IRA into a new gold IRA. In as little as five business days, you can buy gold and have it deposited in your own secure space in an underground vault. You can count on your gold being there for you when you plan to retire.

What Kind of Physical Gold Can I Put in a Gold IRA?

You can keep gold bullion (bars, coins, or ingots) in a gold IRA account, but not gold that the IRS considers collectible, like jewelry and sculpture. The Oxford Gold Group can sell you many different gold coins and bars for your gold retirement account.

Can I Go to the Depository and Physically Inspect My Gold?

Yes. You can go to the storage facility and inspect your gold at any time. See our FAQ page for more information about the storage of gold in your IRA with The Oxford Gold Group.

Can I Take Physical Possession of My Gold if I Am Required To Take Distributions?

If you take distributions from your self-directed gold IRA, you have two options. You can either have The Oxford Gold Group liquidate the assets and send you the money or have us deliver your assets to you. After you receive your gold, you will take on the responsibility of keeping your gold safe.

How Can I Be Sure That My Assets Are Safe While They Are in My IRA?

We use insured couriers to transport all our precious metals. The companies that we trust to store and secure precious metals assets represent some of the most reputable in the business. We insure precious metals with Lloyds of London to protect our clients from loss due to theft or damage.

Why Can’t I Get Silver and Gold Through My Bank or Brokerage Firm?

woman calling a bank for a gold ira

If you already have investment accounts with another institution, you might wonder why you can’t simply add precious metals to your portfolio and keep the gold in a safe deposit box. Buying gold and putting it in a safe deposit box at the bank could protect your gold, but it would not give you the tax protection of an IRA. Your investment broker or a representative at your bank might not be able to give you advice about the precious metals market.

If you plan to invest in physical gold for your retirement and want expert advice about your investment strategy and world-class security for your precious metals, your best bet is to open a self-directed gold or silver account with The Oxford Gold Group.

What Is a Self-Directed Gold IRA?

Self-directed IRAs are similar to other traditional and Roth IRAs. They offer the same tax benefits but allow you to invest in other assets besides publicly traded stocks, bonds, and mutual funds. You can invest in:

  •       Real Estate
  •       Private Companies
  •       Cryptocurrency
  •       Precious Metals

Of these options, precious metals offer strong protections against market volatility. Companies can go under. Cryptocurrency suffers from notoriously volatile fluctuations. Housing bubbles inflate and burst.

When you invest in gold with a self-directed IRA, you will less likely see a sharp devaluation of your assets. The price of gold does go down sometimes if many investors sell gold to invest elsewhere. However, the trend in the market has been generally upward, without the nail-biting swings that you often see in other markets.

Investing for Your Retirement With The Oxford Gold Group

couple talking about gold ira for their retirement

At The Oxford Gold Group, we make it easy to create self-directed silver and gold IRAs. Our investment guide leads you through the process of buying physical gold for storage in a reliable, authorized facility with IRA tax protections. Alternatively, you can buy gold as a non-IRA investment, and we will send it to your house.

We hope you have found our discussion of the question “Can I take physical possession of gold in my IRA?” to be informative. If you are still not sure whether a self-directed gold or silver IRA is right for you, visit the learning center on our website. Read our guide and watch our video, “Protect Your Financial Future.” If you have any other questions, we are happy to help.

Any investment decision requires careful consideration. We are here to make the process as hassle-free as possible. Call The Oxford Gold Group at 833-600-GOLD today to discuss your options.

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