IRA Approved Precious Metals
Making precious metals bullion coins and bars part of your IRA is a proven way to protect your retirement portfolio and get more profitable diversification over time. Investment-grade metals and especially Gold Bullion is a recession-proof investment that is a historically proven hedge against negative economic cycles like wars, inflations and housing bubbles .
Here are more details about the different requirements for bullion coins and bars to be accepted in an IRA
Under IRC Section 408(m)(2) it is clearly stated that any stamp, coin, metal, or gem is defined as being ‘collectible’. In Section 408(m)(1) it states that (paraphrase) ‘acquisition by an IRA account regarding any collectible will be treated as being a distribution in an amount that is equal to the cost of such an account for said collectible’. It is clear, based on these 2 statements, that retirement accounts may not be used to invest in coins or metals. That would be deemed a ‘distribution’.
As with most laws of governance there are some exceptions that are provided for in Section 408(m)(3) of the IRC, stating that –
The term ‘collectible’, for the purposes intended in this subsection, will not include the following:
Any type of coin which is :
or any gold, silver, palladium, or platinum bullion of fineness that equals or exceeds the set minimum fineness required by the contract market for metals that might be delivered satisfactorily in regard to any regulated futures contract, if that bullion is in physical possession of the retirement account’s trustee.
What this exception means is that we’re permitted only to invest in gold, silver, palladium, and platinum bullion and coins
Gold Coins Requirements
As already noted above the gold coins that are permitted need to be meet certain specifications like:
1. A $50 gold coin needs to be 32.7mm in diameter and weigh 33.931gm, and contain 1 oz. of troy fine gold.
2. A $25 gold coin needs to be 27.0mm in diameter, weigh 16.966gm, and contain 1/2 oz. of troy fine gold.
3. A $10 gold coin needs to be 22.0mm in diameter, weigh 8.483gm, and contain 1/4th oz. of troy fine gold.
4. A $5 gold coin needs to be 16.5mm in diameter, weigh 3.393gm, and contain 1/10th oz. of troy fine gold.
These coins must also have a specific design:
On the front side there needs to be a design that’s symbolic of Liberty. On the back side there needs to be a design that represents an eagle family, with the male holding an olive branch while flying above the nest that holds the female and hatchlings.
They must have inscriptions representing the mint year and issuing year along with the words:
2. E Pluribus Unum
3. In God We Trust
4. United States of America
Every coin must have been minted, as well as issued, by the Sec. of the Treasury before it is allowed into anyone’s retirement account.
Silver Coins Requirements
We indicated the rules above and established that for silver coins to be permitted, they must meet certain specifications like –
1. 40.6mm in diameter weighing 31.103gm.
2. Liberty Symbol on Front Side.
3. Eagle design on the Back.
4. Inscriptions representing mint or issuance year.
5. The words ‘In God We Trust, Liberty, 1 oz. fine gold, One Dollar, E Pluribus Unum, or United States of America’.
6. Reeded Edges
7. Minted & Issued by the Sec. of Treasury to be allowed in a retirement account.
Platinium Coins Requirements
Again, we saw above that permitted platinum coins must meet with certain specifications. The Secretary can mint and issue proof platinum coins only if they meet with all required specifications, quantities, designs, inscriptions, and varieties as the Secretary prescribes from time to time.