Can I Use My IRA to Buy Gold?


We often get questions like this, mostly from new investors. Whether you are new to precious metals investing or not, this article will bring to light some details of how you can purchase gold using your IRA.

What is an IRA? The term IRA is short for Individual Retirement Account. It is a sort of account that provides you with some tax advantages. Due to this, most individuals use them for their retirement savings.

Another outstanding benefit of IRAs is the fact that you can convert your funds to precious metals. Gold, silver, and palladium are some of the precious metals you can purchase with your IRA. Unlike regular bank saving accounts, IRAs are desirable for long-term savings.

Yes! You can purchase gold using your IRA. However, this means that you will need to open a Gold IRA. You can click on to read more on how to use IRAs to buy gold.


Gold IRAs – Account Types

These accounts have been grouped based on the benefits they offer. Below are details on the three IRAs.

Traditional IRA

Traditional accounts are well-known and the most used retirement accounts. There are various benefits of having traditional IRAs. One important one is being able to deduct your contributions from your income.

Contributors of traditional retirement accounts can subtract their contributions from their income balance before filing their taxes. Doing this reduces the amount of tax you pay for that year. However, there is a tax fee deduction when withdrawing from the account.

Roth IRAs

A Roth retirement account is the direct opposite of the traditional IRAs. Here, taxes are charged on your account when you subscribe to the IRA. However, the benefit of this account is that your withdrawals are tax-free. It means you do not pay money for withdrawals.


A SEP account is an account for small businesses. SEP offers similar benefits to traditional IRAs. However, they allow self-employed individuals and small business owners to make contributions to an IRA.

Gold IRAs – Funding Options

As soon as you have opened the kind of gold account you desire, it is time to fund. Funding your retirement accounts is not hard. We shall highlight three popular ways you can do this.

Pay with cash

One of the easiest methods to contribute is paying with cash right to your account. You can do this via a bank deposit or mobile bank transfer. However, this depends on your broker. Once the money is in your account, you can purchase any precious metal your broker offers.

Make Transfers from an Existing IRA

Another option is to make a transfer from an existing IRA if you own one. All you need to do is contact your accounts manager, fill out some forms, and voilà. You can click here to read more about how direct IRA transfer works.

401(k) Rollovers

You can transfer other retirement plans like the 401(k) into IRA. To do this will require some steps. You can contact your account manager for details on how to roll over your 401(K) plan.

Gold IRAs – Where Are My Assets Stored

Where and how your assets are stored is a big question. Based on government policies and laws, contributors are not allowed possession of physical bullion. In proper terms, you cannot keep your gold assets in your house safe.

Various companies have certifications for storing precious metals. The assets are in a depository. However, you will need to pick the storage type you want. Below are the two storage options.

Segregated Storage

Choosing this storage option segregates your assets. In simple terms, they will be apart from other investors’ assets. It is the best storage option as your bullion will receive special care. However, it is expensive.

Commingled Storage

Signing up for commingled storage infers that your assets are in a general depository. Your bullion will be together with other investors’ assets. There are several downsides to this option. However, it is cheap.

Gold IRAs – Withdrawals

When you make contributions towards an IRA, some policies place restrictions on your withdrawals. IRAs are for long-term savings. We will briefly highlight some withdrawal policies for traditional and Roth accounts.

Traditional IRA Withdrawal

Here, you are not allowed to make withdrawals until you are over 60 years old. It is the average retirement age. At this age, every withdrawal made is an income and tax is charged.

However, there is an option for making a withdrawal before this age limit. You will pay a penalty fee of 10% on the funds withdrawn.

Other rules on traditional accounts affect those above 70 years. For example, a contributor will have to make withdrawals when he is up to 70 years old. You will be charged penalties if you do not comply.

Roth IRA Withdrawal

Roth accounts make exceptions to their withdrawals. Contributors can make withdrawals at any moment without being charged. The penalty charge on prompt withdrawals is the same for traditional holders.

Notwithstanding, there are certain exceptions to the rules. For instance, if you want to purchase a house or make medical expenses, you might qualify for a penalty-free withdrawal. Depending on the broker, you might only have such an opportunity once.


A retirement account is a good saving option. IRAs can be used to store precious metals and bullion. There are several funding options for contributors. However, some government policies restrict you from funding directly with gold coins or bullion.