What Are the Restrictions on Precious Metals in an IRA?

When it comes to investing in an IRA, there are certain restrictions on the purity of coins and bars that can be held. To qualify for an IRA, silver must be at least .999 pure, while gold must have a purity of 99.5% or better. It's important to note that some coins may meet IRS purity standards, but not be eligible for an IRA because they are considered collectible. These include several popular ingot coins, such as the United Kingdom's sovereign coins, 20-franc gold coins, and U.

S. coins. Numismatic, Commemorative and Collector's Coins should be avoided as they are highly overvalued and not suitable for investing in an IRA.Investors with gold IRAs can hold physical metals such as ingots or coins, as well as securities related to precious metals, in their portfolios. Test coins must be encapsulated in their original packaging and in perfect condition, with a certificate of authenticity, while untested coins are only accepted if they are in perfect condition, undamaged and uncirculated.

Before 1997, IRAs were limited to holding American Eagle gold and silver coins, but with the passage of the Taxpayer Assistance Act of 1997, investors were able to venture even more into precious metal investments with their IRAs.It's important to research and consult with a financial advisor before making any decisions about investing in gold and to ensure that you only add IRA-eligible gold coins to your portfolio. IRA-eligible gold coins are non-collectible coins that have a purity of at least 99.5% and are produced by an accredited facility or a national government mint. The following is a list of silver ingot coins that are not eligible to be deposited in a precious metals IRA: United Kingdom's sovereign coins, 20-franc gold coins, and U. coins.You can invest in a variety of gold assets with a traditional IRA, such as gold mining stocks and gold exchange-traded funds (ETFs), although you can't buy physical gold.

Since gold and other precious metals are considered collectibles, that imposes restrictions on the types that can be included. According to the latest PLR, the rules that prohibit direct IRA investments in gold do not apply when the gold is in the hands of an independent trustee.Gold coins along with a select list of eligible foreign coins that meet minimum fineness requirements and other standards must be used when investing in an IRA. First, any silver found in an IRA must meet the purity standards required by the IRS, which state that all silver ingots and coins found in an IRA must meet a purity grade of .999 or higher.