Gold IRAs are a great way to diversify your retirement portfolio and take advantage of the tax benefits associated with them. However, it is important to understand the fees associated with these types of accounts before investing. Gold IRAs charge additional costs and account setup fees, in addition to the establishment costs and purchase price of eligible precious metals. A custodian can be a bank, a credit union, a trust company, a brokerage firm, or a popular gold IRA company, such as Birch Gold Group or Oxford Gold Group.
All gold, silver, platinum, or palladium held in such accounts must be stored in these IRS-approved deposits in an external location, separate from the account administrator. For those who intend to include a gold IRA in their portfolio, there are a number of additional costs associated with this type of account that investors should consider. The good news is that there are no government-sanctioned reinvestment or transfer fees for transferring an existing traditional IRA to a precious metals IRA account. You can also invest in certain platinum coins and in certain gold, silver, palladium and platinum ingots.
Not only can a person research different gold or silver ingot merchants, but they can also research and compare different IRA custodians or trust companies. Simplified gold IRAs for employee pensions, also called gold SEP IRAs, are available to self-employed individuals and small business owners. In the case of the GLD, receiving physical gold is very difficult, if not impossible, for most retail investors. When it comes to fees associated with gold IRAs, it is important to understand that there are several different types of fees that may be charged.
These include account setup fees, annual fees, storage fees and transaction fees. Account setup fees are typically charged when you open a new account and may include an initial setup fee as well as an annual fee for ongoing maintenance of the account. Annual fees may be charged on an annual basis for ongoing maintenance of the account. Storage fees may be charged for storing your precious metals in an external location.
Transaction fees may be charged when you buy or sell precious metals within your account. It is also important to note that some administrators will offer a discount on the first year's annual fee or even an annual discount depending on the size of the account. With any type of investment under the sun, you should have a complete idea of the expenses and other charges associated with the investment in question before investing.
