Is Gold Allowed in an IRA?

Gold is allowed in an Individual Retirement Account. Before investing in gold, review whether or not your specific IRA allows it as a type of investment option. In addition to reviewing the specifications of your IRA agreement with your custodian, consider any applicable Internal Revenue Service regulations on this subject.

Take note that many individual retirement accounts do not allow the investment of gold or any other form of collectible. According to Investopedia’s IRA Resource Center, for example, an Individual Retirement Account governed by IRS regulations may be prohibited from holding certain assets such as art, antiques, and gems.

If your IRA does include gold as an acceptable investment, be aware that there are two different methods of investing in gold. One way is to invest directly in physical gold bullion, coins, or bars. Another option is to purchase shares in companies that focus on mining and provide exposure to the price movement of gold.

Regardless of which method you choose, make sure your IRA custodian knows how much exposure you can maintain. For instance, limits may apply based on the number of assets under management for each investment type. If applicable, remember that any taxable distributions made upon the sale or disposition (or expiration) of your investments would then need to be reported as taxable income.

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