Precious Metals IRA – Who’s Involved with Your Investment?

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When you buy precious metals (or any other commodity) with the money in your pocket, you hand over the funds and receive the items. Case closed. On the other hand, to pursue retirement diversification and the tax advantages of self-directed IRA investing, a precious metals transaction becomes a matter of paperwork instead of an exchange of money for gold and silver. The IRS mandates the participation of multiple companies to prevent unintentional prohibited transactions by retirement investors. Let’s take a look at the three entities involved when investing in precious metals with a self-directed IRA.

Your Dealer

Although not identical, your role and the role of your precious metals dealer is virtually the same. Unlike other IRA providers, New Direction IRA allows your IRA to buy, sell, or exchange precious metals with any dealer you want. You can elect to buy from a large national brand or the coin shop down the road; the dealer you trust is alright by us! The only real difference lies in purity requirements set forth by the IRS, though most common items meet the specified minimums:

  • Gold – 99.5% (gold American Eagle coins do not meet the minimum but are permissible in self-directed IRAs)
  • Silver – 99.9%
  • Platinum – 99.95%
  • Palladium – 99.95%

Once you’ve chosen your dealer and know the eligible products you’d like to acquire on behalf of your self-directed retirement plan, you may contact your broker to establish terms in the same manner as a purchase with personal funds.

Depository/Storage Facility

Precious metals owned by an IRA must be stored in a depository and may not be physically held by the plan holder. At New Direction IRA, you can choose from several storage facilities based on method of storage (commingled vs. segregated) and geographic region (international options are available). We maintain constant communication with these facilities to ensure held assets correspond with transaction paperwork and to initiate new transactions on behalf of our clients.

New Direction IRA

Per the IRS, retirement accounts must be administered by a provider like New Direction IRA. While we take great pride in our IRA educational services and client relations, we also serve as a last line of defense by reviewing any upcoming transactions and verifying their accuracy. We then await confirmation from the depository and update your account holdings accordingly. Prohibited transactions can result in account distribution and potential tax implications, so it’s essential that IRA providers conduct a comprehensive assessment of any proposed investments. In addition to the aforementioned services, New Direction IRA strives to excel in the following practices:

  • Identity verification and protection.
  • Transaction confirmation through approval of clear and complete paperwork.
  • Investment execution via wire transfer for all metals purchases.
  • Accurate accounting with regular reviews and updates.
  • Generation and dissemination of important tax information.

Our dedicated Precious Metals Asset Team (PMAT) specializes in assisting precious metals clients with opening their new accounts and addressing any questions or concerns. They also collaborate with precious metals dealers to ensure prompt and accurate investment execution. For more information about precious metals IRAs, please feel free to contact our office. To connect directly with a PMAT representative, call 877-742-1270 (Ext. 185).

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