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If you’re interested in investing in physical gold and other precious metals in your retirement account, you’ll need to open a special kind of account called a gold IRA. There are many different gold IRA custodians to choose from and it can be difficult to figure out which one is right for you.
Here are four things to look for when you’re choosing a gold IRA custodian.
What is a gold IRA?
A gold IRA is a special type of retirement account that allows you to hold physical gold and other precious metals in your portfolio. These types of investments are deemed collectibles in traditional IRAs, which the IRS considers to be distributions and can lead to taxes and penalties. Of course, gold and other precious metals ETFs are fine to hold in a traditional IRA because they’re securities.
Gold IRAs are available through many different brokers and custodians, but they typically come with higher fees than a regular IRA. The contribution limits are the same for gold IRAs as they are for regular IRAs and come in at $7,000 for 2024 and 2025. Those aged 50 and older can contribute an additional $1,000.
4 things to look for when choosing a gold IRA custodian
1. Reputation and credibility
Reputation and credibility are critical when choosing a gold IRA custodian. You’ll want to select a place that has been in business for many years with a strong track record of serving their clients. You’ll want to research different firms and take note of any significant customer complaints or legal issues.
Bankrate’s list of the best gold IRA providers is a good place to start. We evaluated the companies based on factors such as account minimums, fees, transparency and customer service.
2. Account fees
Fees for a gold IRA are typically higher than what you’ll pay for a regular IRA at a traditional broker. These are some of the fees that you might find if you open a gold IRA.
- Setup fees: These are one-time fees that are charged when you open your account.
- Annual fees: These management fees may be charged based on the value of your account or at an annual flat rate.
- Storage fees: These annual fees are charged to store and insure your investment at the institution where it’s held.
Fees ultimately lower the return that investors earn from holding a particular asset. Many of the fees associated with gold IRAs can be avoided by using a regular IRA to hold more traditional investments such as a gold ETF.
3. Account minimums
You’ll want to pay attention to the account minimums at different gold IRA custodians. Some have no minimums, while others can reach $50,000. With the IRA contribution limits of $7,000 ($8,000 for those 50 and older), you may need to roll over an existing retirement account to the gold IRA in order to meet the minimum.
If you’re just starting out with small sums, you’ll want to find a provider with no account minimum.
4. Customer support
Customer support can be easy to overlook when choosing a gold IRA custodian, but it’s something that is really important when you need it. Look for whether you can reach a customer support representative by phone and what hours they’re available.
You’ll also want to understand how the custodian helps with recordkeeping and any information you’ll need for the IRS when filing your taxes.
Bottom line
A gold IRA isn’t necessary for most people who are saving for retirement using traditional assets such as stocks, bonds and ETFs. But if you want to hold physical gold in a retirement account, you’ll need to open a gold IRA. Pay attention to the reputation of the custodian, including its customer service, and make sure you understand the account fees you’ll be paying upfront and over time.
Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation.
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