Using Your IRA to Invest in Gold: A Step-By-Step Guide

Using Your IRA to Invest in Gold

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As you look ahead and aim for financial stability later, you may wonder how to best prepare for a secure and comfortable retirement. While there are many different factors to consider, one of the most important ones is how to invest your savings. With so many options available, knowing where to start takes work. That's why you might be considering adding gold or other metals to your portfolio.

These metals have been a popular investment option for centuries, acting as a protection against market volatility and inflation. If you're thinking about using the funds in your retirement account to delve in precious metals, you are not alone. Many have found that this can help reduce the overall risk of their portfolio and provide a cushion against economic uncertainty. However, you may wonder if this decision is right for you. After all, its several benefits, including diversification and tax advantages, can be very appealing to those who want to grow and preserve their wealth for retirement.

Like any asset, this also has its drawbacks. Essentially, you need to understand this type of investment before making a decision. Don’t worry! We will provide the necessary information to help you start your financial journey. After reading this, we hope that you are confident with your knowledge and use it to decide whether investing in gold with your IRA is right for you.

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Using Your IRA to Invest in Gold: A Step-By-Step Guide

Understanding Your IRA

You must first have adequate knowledge about your IRA and how it works, before using it to buy gold. An individual retirement account is a tax-advantaged investment designed to help you save for retirement. There are several different types, including traditional IRAs, Roth IRAs, and SEP IRAs. You must clearly know the rules that apply to you before using your retirement funds in gold since different retirement account types also have varying regulations regarding contributions, withdrawals, and investment options. Additionally, the types of assets allowed in your account may be limited. For example, some accounts may restrict the amount of precious metals you can hold. Listed below are the three most common types of IRAs.

Traditional IRA

A traditional IRA allows you to make contributions with pre-tax dollars, which means you won't have to pay taxes on the money you contribute until you withdraw them in retirement. This may be a good option for those who expect to be in a lower tax bracket in retirement, as it requires you to pay taxes on the withdrawals at a lower rate. They also offer tax-deferred growth, meaning you will only have to pay taxes on the gains once you withdraw the money in retirement.

Roth IRA

A Roth IRA differs from a Traditional IRA since it requires you to make contributions with after-tax dollars, meaning you'll pay taxes on the money you contribute upfront. However, this makes your withdrawals in retirement tax-free. It can be a good option if you expect to be in a higher tax bracket in retirement, as you won't pay taxes on the withdrawals.


A SEP IRA (Simplified Employee Pension Plan) is designed for small business owners and self-employed individuals. It allows you to make much more significant contributions than Traditional and Roth IRAs with up to 25% of your annual income or $58,000, whichever is lesser. Thus, this is the account type for you if you are self-employed or have a small business and want to save more for retirement.

Everything You Need to Know About Gold IRAs

Individual retirement accounts backed by precious metals, have become an increasingly popular option for individuals looking to improve their portfolio. However, unlike traditional accounts, they usually hold physical metals in the form of bullion or coins, rather than stocks, bonds or money.


  • Protection Against Economic Uncertainty. It is a smart way to protect yourself from economic threats such as increasing inflation. It is because gold is historically known to often rise in value as it's believed to be less affected by market fluctuations compared to other assets.
  • Diversification of Portfolio. You can diversify your portfolio by investing in different precious metals. This is a practice most successful investors adhere to since, by diversifying your portfolio, you minimize the risk of your investments and help protect you against losses.
  • Tax-deferred Growth. It also returns larger investment gains compared to traditional stocks and bonds, since it offers tax benefits similar to traditional retirement accounts, allowing you to defer taxes on your investment gains until you withdraw the funds instead of your gains being taxed each year. 
  • Safety. Through this asset, you can be assured that your contributions are safe as the precious metals are all held in a secured and insured depository. You don’t have to worry about theft and losses as experienced professional managers and custodians will ensure that these are highly protected.


  • Limited Liquidity. Physical metals can be difficult to sell quickly, which may be a drawback for some as you cannot easily access your funds in an emergency.
  • Costs. This asset has added costs, such as insurance, storage, and custodian fees. Thus, these may reduce your overall returns but are essential and worth it to protect your assets. Also, maintaining it has associated costs that can impact the overall value and effectiveness of your investments.
  • Complex Rules and Regulations. They tend to be more complicated since you need to adhere to specific rules set by the Internal Revenue Service (IRS) regarding the maintenance and accessibility of these types of accounts. For example, there are certain limitations in place with regards to the types of precious metals that can be held in your account, as well as restrictions on how and when you can make withdrawals. There are also penalties involved for early withdrawals and not meeting account balance requirements.
  • Limited Asset Options. While this type of retirement account provides a level of diversification in your portfolio, it also limits your choices. With a traditional account, you can invest in a range of financial options such as hundreds of stocks, bonds and mutual funds. However, with a gold IRA, you’re only limited to precious metals.
Using Your IRA to Invest in Gold: A Step-By-Step Guide

Steps in Investing IRA in Gold

Here are detailed steps to take to start with.  The process is relatively straightforward, and by following a few simple steps, you can start in no time.

Choose a Gold IRA Provider

The first step is to choose a provider who specializes in this industry since not all IRA providers offer this type of option, so it's essential to research and find one that does.

Look for a provider that has a good reputation, is transparent about its fees and processes, and offers a wide range of options. You can start by researching online, reading reviews, and reaching out to the providers if you have questions. We have compiled our top 3 gold investment companies to check out to save time. They are highly recommended because they offer quality products and excellent customer service. Check them out below.


Augusta Precious Metals is well-known for their transparency and honesty as they do not charge hidden fees. It is also a great investment company to work with, even if you have yet to gain any prior experience or knowledge about the industry. They ensure you are knowledgeable about the industry through their wealth of educational resources, such as online webinars. Furthermore, their team of economists is always available to guide and support your investment and retirement goals. Overall, it strives to be a reliable and trustworthy partner as you navigate the world of gold IRAs.

#2. Goldco


Goldco remains a trustworthy choice due to its solid reputation among investors. They are considered one of the top investment companies due to their affordable prices and commitment to providing clear and comprehensive information to help their clients make informed decisions. Moreover, they have a reputation for their outstanding customer service and staff who are known for their friendly demeanor and practical communication skills. Lastly, they prioritize the security of their client's assets by using top-notch storage solutions. All this contributes to a hassle-free experience when working with them.

Investing in gold doesn't have to come with a hefty upfront cost. This sets it apart from its competitors as it offers understanding customer service, even without needing an initial contribution. They are known for their strong reputation for delivering a satisfying customer experience and prioritizing customer satisfaction. In addition, it offers a diverse range of products and is dedicated to helping its clients achieve their financial goals. 

Open a Gold IRA Account

Once you've chosen a gold IRA provider, the next step is to open an account. This is typically a straightforward process you can complete, whether online or in person. Aside from providing necessary personal details about you, you'll also need to choose the type of retirement account, such as a gold, traditional or Roth IRA, and decide how much you want to invest. 

Fund Your Gold IRA

Now that you have your gold IRA account, you'll need to fund it. You can do this by rolling over money from an existing IRA or 401(k) plan or making a direct contribution. To know more about rollovers, you can proceed to the next section.

Choose Your Investments

You have several investment options to choose from, including:

  • Physical Gold. This option involves buying gold coins, bullion or bars and storing them in a secure and insured facility. Take note that these should adhere to the rules and regulations of the IRS, such that it has a purity of 99.5% or higher.
  • Gold ETFs. An exchange-traded fund (ETF) is a type of asset that tracks the price of gold. If you invest in a gold ETF, you'll own a piece of the fund, and the value of your investment will depend on the price of gold. In general, they are a popular choice for those who want more control over their assets as these can be bought and sold throughout the trading day. 
  • Gold Mining Stocks. You can also buy stocks of companies that mine and produce gold. This carries more risk than choosing the former options mentioned, as you will be trusting the potential of a mining company and the value of your stock will depend on this.
  • Other Precious Metals. Aside from gold, it also allows other precious metals, such as silver, platinum, and palladium. However, the types of metals allowed can vary depending on the custodian and their specific policies. You have to make sure that the metal you’ll be buying adheres to the standards, in terms of purity, weight and size, to avoid unnecessary hassle. If you have limited understanding about the market, it’s safe to just consult established financial advisors, such as those we’ve mentioned previously, to ensure you are on the correct path. 

Be sure to take advantage of the different choices you have when it comes to your account to further diversify your portfolio and enjoy the benefits of minimized risk. 

Monitor Your Investment

Once you've made your investment, it's essential to monitor it over time. Keep an eye on the performance of your assets and make any necessary changes to ensure that your portfolio remains aligned with your investment goals. Feel free to reach out to your gold provider if you have any questions, or concerns or need guidance. 

Using Your IRA to Invest in Gold: A Step-By-Step Guide

How Does a Rollover Work?

As you may be wondering how to add gold to your retirement portfolio, it is even easier when you already have an IRA. You can use your existing IRA to buy gold through rollovers. A rollover occurs when you move the funds from your existing retirement account into a new account, such as a gold IRA, without incurring any taxes or penalties. Funding your gold IRA by rollovers is relatively simple. You can follow the steps mentioned in the previous section and initiate a rollover to support your newly opened gold IRA using your existing retirement account.

Benefits of Rolling Your IRA to a Gold IRA

This is highly beneficial as it allows you to invest in precious metals while keeping the tax-deferred status of your retirement savings. In other words, it means that the taxes on the growth of your gold investment are postponed until you withdraw the funds from your account. Thus, using your retirement account is an excellent decision since it's different from a taxable investment, where you would have to pay taxes on the investment gains each year, whether you withdraw the funds or not. By rolling over the funds of your retirement account into a gold IRA, you can grow your money faster because you're not losing a portion of your investment returns each year. Thus, you can have a larger balance, enabling you to reach your investment goals more quickly.


Investing in gold can provide several benefits, including diversification, protection against economic threats, and tax-deferred growth. Take note that there are also disadvantages, such as limited liquidity and costs, that should be taken into account. Make sure that your financial decision is aligned with your risk appetite and financial goals before making a decision. However, this is better than investing in nothing to ensure you protect your wealth just in time for retirement. By following the steps outlined above, you can easily add gold, a valuable asset, to your investments and enjoy the benefits of having a well-rounded portfolio. You'll also be one of the many successful investors who saw the value of gold and reap the rewards. If you're still hesitating, reach out to investment companies, especially those we've mentioned, and see for yourself how easy it is. With the right gold provider and a bit of research, you'll be well on your way to a more secure and diversified retirement portfolio.