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Learning Center

How Does a Gold IRA Work?

How Does a Gold IRA Work?

A Gold IRA functions much like a traditional or Roth IRA—except instead of holding only paper assets, it allows you to invest in physical gold and other IRS-approved precious metals like silver, platinum, and palladium. You get the same tax advantages as a regular retirement account—with the added protection of owning tangible, time-tested assets.

You’ll still have full access to quarterly statements, online balance tracking, and named beneficiaries—just like any conventional IRA.

What Type of Gold IRA Is Right for You?

There are three primary Gold IRA structures, each offering unique tax advantages:

Traditional Gold IRA

  • Contributions are tax-deductible
  • Gains grow tax-deferred
  • Taxes are paid when funds are withdrawn in retirement
  • Annual contribution limits: $7,000 (under 50) / $8,000 (50 and over)

Roth Gold IRA

  • Contributions are made with after-tax dollars
  • No taxes on qualified withdrawals in retirement
  • Ideal for those expecting higher tax rates later in life

SEP Gold IRA

  • Designed for business owners and self-employed individuals
  • Contributions are not taxed and allow for higher limits
  • Contribute up to 25% of income or $66,000, whichever is lower
American Alternative Assets can walk you through each account type and help you choose the best fit based on your income, tax status, and retirement goals.

Can You Transfer Your Existing Account?

Chances are, yes. Most retirement accounts—including Traditional IRAs, Roth IRAs, SEP IRAs, and SIMPLE IRAs—can be moved to a Gold IRA without taxes or penalties.

Other employer-sponsored plans (401(k), 403(b), 457, TSP) may qualify if you’re over 59½ or no longer with the employer that sponsored the plan.

Our IRA specialists will evaluate your account and alert you to any transfer limitations, such as surrender charges for annuities. Most accounts qualify for a tax-free, penalty-free rollover.

How to Set Up a Gold IRA

Opening a Gold IRA is straightforward:

1. Open a Self-Directed IRA – Complete a simple online or physical application.

  • Fund the Account – Choose from:
  • IRA Transfer (IRA to IRA)
  • Rollover (from 401(k) or other retirement plan)
  • Cash Contribution (via check or wire)
2. Select Your Metals – Work with your advisor to choose IRS-approved coins or bars.
3. Choose a Depository – We’ll help you select a secure, insured facility.
Note: You can’t fund a Gold IRA with metals you already own. The metals must be newly purchased and meet IRS criteria.

Funding Your Gold IRA

You can move money into a self-directed Gold IRA three ways. Choose the route that matches your timeline and tax needs.

1. Direct rollover

  • Shift assets from an old 401(k) or 403(b) straight to the new custodian.
  • The plan administrator sends the funds; you never touch the check.
  • No taxes, no early-withdrawal penalties, no 60-day deadline to redeposit.

2. Trustee-to-trustee transfer

  • Move cash from an existing traditional, Roth, SEP, or SIMPLE IRA.
  • Current custodian wires the balance to the Gold IRA custodian.
  • Reported as a "non-taxable transfer" on Form 5498-keeps the IRS happy

3. Annual contributions

  • Add fresh dollars up to the yearly limit
  • ($7,000 if you're under 50l $8,000 if you're 50+ for tax year 2026)
  • Fund by check, ACH, or bank wire.
  • Contributions may be tax-deductable, depending on income and plan type.

How American Alternative Assets streamlines the process

  • 1. Account review - We confirm eligibility and explain the rollover or transfer steps.
  • 2. Paperwork prep - You sign; we coordinate with both custodians.
  • 3. Funds cleared - Money arrives in a segregated cash account, ready for metal purchase.
  • 4. Metal allocation - Select IRS-approved coins or bars that fit your strategy.
  • 5. Secure storage - Assets move to an insured, audited vault; view holdings online 24/7
Questions about timing, fees, or required forms? Book a free call with a Senior Portfolio Manager and fund your Gold IRA with confidence.

What Precious Metals Are Allowed?

Under IRS guidelines, only specific coins and bullion are permitted in an IRA. Metals must meet strict fineness standards and come from approved mints or refiners.

Approved Gold (99.5%+ purity)

  • American Eagle coins
  • Canadian Maple Leaf
  • Austrian Philharmonic
  • American Buffalo
  • British Britannia (2013+)
  • Credit Suisse bars

Approved Silver (99.9%+ purity)

  • American Eagle coins
  • Canadian Maple Leaf
  • Australian Kookaburra
  • America the Beautiful series
  • Bars from NYMEX/COMEX-approved refiners

Platinum & Palladium (99.95% purity)

  • American Eagle coins
  • Canadian Maple Leaf
  • Approved bars and rounds from recognized refiners
Don’t worry about memorizing this list—our experts will walk you through your best options

Where Are My Metals Stored?

IRS rules require that metals held in a Gold IRA must be stored at a third-party, IRS-approved depository. These facilities are insured, secure, and fully compliant.

Options Include:

  • Delaware Depository (Wilmington, DE)
  • Brinks (Salt Lake City or Los Angeles)
  • International Depository Services (IDS)

Storage Types:

  • Commingled Storage: Your metals are stored securely with others’ but you'll always receive the same type and quality of metals you purchased.
  • Segregated Storage: Your metals are stored separately, under your name and account number. When it’s time to take a distribution, you’ll receive the exact metals you originally purchased.
All facilities offer 24/7 surveillance, advanced security protocols, and full insurance through trusted carriers like Lloyd’s of London.

Why Work with American Alternative Assets?

We simplify the process and protect your time. From account setup to metal selection and secure storage, our team of IRA specialists and retirement advisors manage every detail—so you don’t have to.

If you’re ready to roll over part of your retirement portfolio into precious metals or want to explore your options, schedule a free consultation today.

Call 888-503-1553 to get started.

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