A Gold IRA is a specialized self-directed IRA designed to hold physical precious metals for retirement purposes. While conventional IRAs usually consist of paper assets such as stocks and mutual funds, a Gold IRA holds approved physical precious metals. This account structure offers a way to diversify retirement savings outside of conventional financial assets.
What Is a Gold IRA and How Does It Work? .Gold IRAs operate under the same tax rules as standard retirement accounts. Investors can choose between a traditional Gold IRA, which offers tax-deferred growth, or a Roth Gold IRA, which allows for tax-free withdrawals in retirement. The main difference is the nature of the assets included, not the tax structure.
To open a Gold IRA, an investor must work with an IRS-approved self-directed IRA custodian. The custodian handles account administration, recordkeeping, and compliance with IRS regulations. After account setup, investors work with a metals dealer to acquire approved metals that are stored in a secure, IRS-approved depository.
Since personal possession is not permitted, precious metals must be held in an IRS-approved storage facility until distribution. This requirement helps maintain security, transparency, and regulatory compliance. Gold IRAs are often used by investors seeking long-term stability, inflation protection, and diversification within a retirement portfolio.