Entrust New Direction Blog

Many self-directed IRA administrators have exclusive arrangement set up for storage of their clients’ IRA-owned precious metals.  In the event that you want move your IRA-owned metals to a new precious metals storage depository, you will most likely need to find an IRA administrator that allows the use of that new depository.  Luckily there are IRA administrators that allow flexibility in choosing the precious metals storage company.  Entrust New Direction IRA, Inc (gold.newdirectionira.com) allows their clients to choose where their IRA metals are stored. 

If you have metals held with another precious metals depository and you would like to move them to a different depository you will take the following steps: 

1. Set up an IRA with Entrust New Direction IRA Inc. All forms and information can be found at: gold.newdirectionira.com
   
   
2. Submit IRA transfer forms to Entrust New Direction. The IRA transfer forms can be downloaded from gold.newdirectionira.com. On the transfer forms you will indicate that you are performing an ‘in kind' IRA to IRA transfer (in kind means you are moving the metals without selling them). Along with the IRA transfer forms it is a good idea to include a letter to the current IRA administrator/depository explaining what you are doing and authorizing the movement of the metals.
   
   
3. Once Entrust New Direction IRA receives your transfer request they will forward the request to your current IRA administrator with delivery instructions and a packing slip. Your current IRA administrator will coordinate with their depository and instruct them to ship the metals to the new depository. Additionally, the IRA administrator will remove the assets from their records and show them as transferred out to your IRA with Entrust New Direction IRA, Inc.
   
   Note: if both depositories are in Wilmington DE then you can instruct the current custodian to authorize the depository to release the metals for personal pick-up by a representative of the new depository.
   
   Note: it is also a good idea to get a medallion signature guarantee on the IRA transfer forms before mailing them to Entrust. A medallion signature is similar to a notary but stronger. It is a guarantee that your signature is genuine. You can generally obtain a guarantee from a bank officer at your local bank. The guarantee is not always required; however, some IRA administrators require it before they will honor the transfer request.
   
   
4. Prior to the arrival of the metals you should sign the account agreement for the new depository and submit that to Entrust New Direction IRA Inc. The new depository should notify Entrust New Direction and you when the metals are received.
   
   
5. Entrust New Direction will post the assets to your IRA.

The modern day gold rush is ON! Commercials, neighbors and famous financial advisors tell you to buy gold. Especially in the past six months, many clients and prospective clients have asked us if they can use their retirement funds to buy gold and other metals. The answer is YES, if you have a self-directed retirement plan, your IRA may invest in precious metals. Part 1 and Part 2 of "How to Buy Gold and Other Precious Metals in your (Self-Directed) IRA" will help you answer the next question- what kind of gold and what other metals?

With so many coins and metal choices on the market, making a decision can be confusing. Following is a simple step-by-step way to determine if the metal of your choice is acceptable for an IRA investment. Note that whatever your choice, the IRS will not allow you to hold the metal personally. The IRA custodian or depository will hold the metals for your IRA.

Let's get the basics out of the way first. Your self-directed IRA can only invest in Gold, Silver, Platinum and Palladium. Note that the key word here is invest. Your IRA cannot buy collectibles - your IRA is only investing in the metal itself, not rare or attractive coins. The metal must be in a certain form (usually coins or bars) and/or of a certain purity. The purity or fineness of the metal is how the quality of the metal will be measured for your IRA.

When most of us hear about gold investment we picture the 400 ounce gold bars we have seen in movies. Extremely heavy (25 pounds), those bars are also very expensive items, particularly with the recent price increases in gold. IRAs are often priced out of the gold bar market, but, fortunately, other options exist. One option is smaller units of bullion, provided they meet the fineness, or purity level, requirement. Another option is coins.

We will provide more detail on specific coins in Part II.

Welcome to the nitty gritty details of investing in gold and other precious metals with your self-directed IRA. If you missed Part 1, check it out first.

First, some history. The IRS initially said that all coins are collectible and therefore, not a legal IRA investment. In the mid 1990’s, after realizing that a 400 ounce gold bullion bar would be too expensive for most IRAs, Congress allowed certain coins in addition to bullion.

Generally these IRA allowable coins fall into two categories:

1.Coins specifically listed in the Internal Revenue Code and minted by the US. . These include:

* American Gold Eagles
* American Gold Buffalo coins
* American Silver Eagles
* American Platinum Eagles

2. Some coins meet the minimum fineness requirements but are not rare enough to receive collector attention.

* Gold Coins - .995+
* Silver Coins - .999+
* Platinum - .9995+
* Palladium - .9995+

In addition to these American options, there are some coins issued by mints of other nations that do meet the fineness requirements. See more detail on specific coins in our coin report. If you’re not sure about the fineness, ask your self-directed IRA custodian or metals dealer.

Coins that were issued for commerce are not going to qualify for IRAs. Also, coins issued for special occasions like Olympic games or national celebrations, and those issued in small quantities, are desired by collectors and their price is generally higher than the value of the raw metal. They are not allowed in IRAs.

When you are researching a particular coin, check two things:

1) Make sure the fineness of the coin meets the required amount from the table above. If not, then it does not qualify.

2) Compare the price of the coin to that of an equivalent weight coin of the same metal and to global spot price of the metal. If you find the price for your coin of choice significantly higher than one or both of the other prices, pass it up for your IRA, as it is likely a collectible.

Your IRA’s investment in gold is just an investment in the raw metal; attractiveness of the coin should not come into play in your investment decision. In other words, consider the value of the coin melted down – not as art.

Also remember that you will not be holding the coins personally when your IRA invests. The IRA custodian will require the coins be held in a depository and you will likely never see them unless you take them as a distribution when you retire.

Now that you’re armed with good information on what kinds of precious metals your retirement account can invest in, you can join the gold rush. Thankfully, you won’t need to climb mountains with a pick and shovel and freeze your knees in mountain streams to diversify your retirement portfolio with precious metals.

For more information, check out our Precious Metals page or our page on some specific coins.