Is a Precious Metals IRA different from a self-directed IRA
Which precious metals are allowed in an IRA?
Precious metals can be held in your IRA in the form of physical gold, silver, platinum, and palladium bullion products. The precious metals allowed in an IRA must meet their respective minimum fineness requirement:
- Gold – 99.5%
- Silver – 99.9%
- Platinum – 99.95%
- Palladium – 99.95%
Please refer to the Precious Metals Center webpage for more information on which metals are allowed in a Precious Metals IRA.
Can I hold other types of investments in a Precious Metals IRA
Can I contribute
No. You can only fund your account in the following ways: cash contribution, cash, and in-kind rollover or transfer from another custodian to Entrust.
In a Precious Metals IRA, do I own the physical metals?
Technically, you do not own the physical metals; your IRA owns them. You may take a distribution in-kind at any time. However, it is a taxable event and you may be subject to the early withdrawal penalty.
Are precious metals certificates allowed?
Some IRAs allow certificates. However, Entrust does not allow precious metals certificates.
Can I take possession of the precious metals?
You may not take possession of the metals while they are held in the IRA. Metals purchased in an IRA are transferred directly into the depository in the name of the IRA. However, you may take a distribution of the precious metal assets, which is a taxable event and you may be subject to the early distribution penalty. There may be some restrictions for international holdings.
The Internal Revenue Code requires that a custodian hold your IRA assets, including precious metals, to keep the assets in a tax-deferred environment.
What does Entrust report to the government?
Entrust annually reports the value of the IRA to the IRS. Nothing else is reported to the government.
There are two fees associated with establishing a new Precious Metals IRA at Entrust. Entrust charges an all-inclusive flat rate $150 annual recordkeeping fee, with no set-up cost and no additional transaction costs. You may accumulate metals over the years without any additional costs. There is also an annual storage fee from the depository you choose. Depending on the depository, these fees range from an average of $95 to $300.
Entrust does not sell or promote any products or vendors. Precious metals may be purchased from any dealer of your choice. Entrust strongly suggests that you perform a thorough due diligence on the dealer for security, including their business ratings, the dealer history, dealer affiliations, and proper review of the terms of agreement and pricing.
Can I buy metals from more than one dealer?
Yes, you may purchase from multiple dealers of your choice.
Can Entrust coordinate the metals purchase for me?
Because it is a self-directed IRA, you will need to negotiate the purchase price and the type of metals with the dealer yourself.
Yes, any past employer or individual retirement plan can be rolled over or transferred to Entrust.