How to Invest in Gold with a Roth IRA

How to Invest in Gold with a Roth IRA

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Investors are always looking for more ways to diversify their portfolios. Owning a mixture of stocks, bonds, and other assets reduces the risk of loss as the stock market changes over time.

A Roth IRA or Individual Retirement Account is a traditional route for saving money, but it's usually limited to paper assets. 

Before we get started, investing your savings is a serious task. When it comes to adding precious metals to your portfolio, how do you know which companies to trust?

That is why we have researched every company in the industry and selected the very few with the highest customer service standards.

This way you can easily compare the best companies in the business, and choose one that fits your needs and investment goals.


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If investors want to look into gold investments, they have options with a Roth IRA. Discover the strategies involved with investing gold in a Roth IRA right now.

The Benefits of Gold

Investors can hold gold coins or bars in their hands. It's a tangible asset. Other assets, such as stocks and bonds, are merely numbers on a computer screen.

Owning gold means that the investor has a finite resource saved away. It offers financial security for nearly any generation.

Because gold is a physical asset, it's not tied to the stock market like paper assets. Its value isn't known to fluctuate very much. In fact, gold tends to grow in value over time.


Another benefit of gold is its simplicity. Investors purchase the gold, and they hold it for many years. It's not like day trading stocks where investors must keep an eye on the asset's value every hour. Ideally, investors can hold onto gold for several decades.

Gain Value 

These long periods allow the gold to gain value. In most cases, the gold slowly grows more valuable for selling purposes. This fact is especially true if investors continue to add more gold to their portfolios.

Financial Stability

Investors hold onto gold for financial stability and generational wealth. It doesn't have to be spent by investors in their lifetime either. Gold and other precious metals can be passed down through the generations.

Children, grandchildren, and other heirs can secure the gold at the investor's request, for example. Its value will continue to rise through the years.

It might be passed down to loved ones by physically handing it to them, or investors may bequeath a gold Roth IRA to a particular person in their will. Gold remains a flexible asset on many levels.

In the past, buying gold was a challenge. Investors had to physically go to dealers selling genuine gold. They were often scarce in smaller towns. Today's online world offers clear photos, detailed descriptions, and plenty of options when it comes to gold investments.

Dealers clearly mark gold purity values on their packaging, which improves its investment value. Investors know what they're buying so that it can always have a strong value if it's ever sold.

Traditionally, gold was simply secured at home in a safe or other areas. Today's investors have so many alternatives available to them, including a gold Roth IRA. Understanding these accounts is how investors will know their value in regards to gold investments.

Standard Roth IRA Guidelines

A standard Roth IRA deals in paper assets only. Mutual funds, bonds, and stocks are typical products available for these accounts. As a result, any dividends gained are tied to the stock market. The balance will rise and fall with the current economic times.

Gold and other precious metals aren't allowed in these accounts. Coins, bars, and rounds must be held in specialized accounts called gold Roth IRAs.

Standard Roth IRA - Benefits

Standard Roth IRAs do have their benefits. Investors can add up to $6,500 each year to the Roth IRA. If the investor is over the age of 50, contributions increase to $7,500 a year. These amounts apply to all IRAs held under the investor's name.

Investors typically use after-tax money to invest in standard Roth IRAs. Because the government has already taken its part of the funds, the money won't be taxed again upon withdrawal at a later date.

In addition, investors benefit from no mandatory distributions. Unlike a traditional IRA, Roth IRAs don't have a minimum distribution amount. The funds can remain in the account for as long as the investor desires. Beneficiaries may end up with the funds if the investor doesn't withdraw the money before passing away.

Standard Roth IRA - Drawback 

A main drawback to a traditional Roth IRA is the lack of current tax year deductions. Any contributions to the Roth IRA aren't tax deductible on the investor's income taxes.

In contrast, traditional IRAs offer this incentive. Investors benefit when they withdraw the Roth IRA funds in retirement. They pay no taxes on the amounts, whereas traditional IRA distributions are taxed accordingly.

Gold Roth IRA Advantages

Investors use gold Roth IRAs to hedge against inflation. That function is their main benefit. If the financial markets collapse, paper assets significantly drop in value. They might drop so far down that retirement funds are nearly depleted. This scenario doesn't occur with a gold Roth IRA. The gold's value remains intact through nearly any financial changes.

This same concept applies to inflation and deflation. Money's value is based on market conditions. It doesn't have any physical value. Gold is different. There are only certain amounts of gold in the world. Investors can physically touch and secure gold in their homes. If it needs to be sold or traded, the gold's value remains steady. The gold's price is separate from any inflation or deflation issues.

Investors may appreciate the idea of keeping gold at their residences, but problems arise with security. Thefts can happen at any time. With a gold Roth IRA, the precious metals must be secured at a different facility called a depository. The investor will never touch the gold with these accounts. They purchase it, and a separate entity manages and secures the items. As a result, the gold is always safe.

Gold Roth IRAs also allow contributions well past age 70. Investors can withdraw or contribute as they desire during retirement. This fact provides flexibility to every investor. For example, withdraw some funds for a vacation while leaving the majority to gain value in the next few years.

Investors also benefit when taxes are rising. Any assets in the gold Roth IRA have already been taxed at the time of deposit. Inevitably, taxes will rise in the next few decades. When those assets are finally distributed, there are no worries about current tax rates. They simply don't apply because the funds are tax-free withdrawals.

Get Started With a Gold Roth IRA 

Because a standard Roth IRA doesn't allow for precious metals, investors must open a new account. A gold Roth IRA is a relatively specialized account, so investors usually research companies before contacting any representatives. 

This research should involve a look at the company's experience in the industry, including years in business and online customer reviews. Narrowing down the search to a handful of companies can make the decision process much easier.

Gold Custodian 

Companies that handle gold Roth IRAs use custodians as account managers. This custodian is an investor's point of contact for any account transactions. Generally, the custodian assists with purchasing the precious metals, arranging shipments, and managing any administration duties between the account and depository. 

With a chosen custodian, investors decide how to fund the new gold Roth IRA. They can wire cash from nearly any account, such as another IRA, 401(k), or checking account. Once funded, the account can be used to purchase gold. 

The custodian and investor work together on choosing certain assets. For example, a mixture of gold coins, bars, and rounds might be in the budget. Investors also have the opportunity of buying other metals, such as silver, palladium, or platinum. Gold tends to be the most popular metal, however.

Custodian Facilitates

The custodian facilitates any precious metals purchases. Depending on the companies involved, shipment times vary between the gold dealer and the depository. Investors receive tracking information for any asset movement. They'll always know where the assets are at any given time. 

Ultimately, the purchased gold ends up at the depository in a secured location. Each investor's assets are held separately from the others. Depository employees are the only people allowed at these facilities, so investors' deposits are extremely safe. 

Investors are welcome to fund, buy and deposit as much gold into the account as they desire. Each transaction simply goes through the custodian.

The same process occurs with a withdrawal. For instance, the custodian can sell part of the gold and directly deposit the funds into the investor's separate account. Alternatively, the investor might physically withdraw some of the gold to keep at home. 

It's ideal to keep the gold in the account for as long as possible, however. It doesn't create dividends like paper assets. Any profits from gold come from its value at purchase time versus selling time.


Ideally, any withdrawals should occur after the age of 59-1/2. There may be early withdrawal penalty fees at a younger age. The custodian can always answer any questions about deposits and withdrawals. They manage many accounts. It's their job to protect the investors' interests.

Managing a gold Roth IRA is starkly different than a standard Roth IRA. There will be more fees associated with the gold Roth IRA account. Fees will vary between companies, so comparing these costs before settling on a custodian is preferable. 

Fee structures usually include account setup costs and custodian fees. These services have a price, which is built into the account's monthly charges. Other fees arise when deposits or withdrawals are made too.

Investors aren't just moving paper assets around on an account ledger. Physical gold is packaged, shipped, and stored for the investor. However, the overall fees are often worth the value the gold brings to the investor's portfolio. 

Gold is an asset that's been historically safe from inflation worries. Investors can use established rules to fund a gold Roth IRA. Diversifying any portfolio is a positive step toward a steady income in retirement.

Remember to read out list of the Top Gold Companies.

>> Click HERE to read our Best Precious Metals IRA Companies list <<


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