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If a comfortable, low-stress retirement is on your agenda, then it’s time to start planning — today.
For many, that means opening a Roth IRA — a type of account that offers tax-free withdrawals once you hit retirement age. You might even consider a Roth gold IRA, which allows you to invest your funds in precious metals like gold, silver, platinum, and palladium. These investments can be smart ways to protect against inflation, grow your retirement account, and diversify your overall portfolio.
If this sounds like an investing strategy you’d like to explore as part of your retirement plan, then read on. This guide will break down everything you need to know about Roth gold IRAs and how they work.
In this guide:
- How does a gold Roth IRA work?
- Gold Roth IRA guidelines
- Best Roth gold IRA companies
- Roth gold IRA vs. other account types
- Is a Roth gold IRA worth it?
How does a gold Roth IRA work?
A Roth gold IRA is a type of self-directed IRA that you can use to invest in various tangible assets — things like art, antiques, collectibles, and even real estate. Gold and other precious metals are just one of the many things you can purchase using a Roth gold IRA.
With a Roth gold and silver IRA, your contributions are post-tax — meaning you’ll pay taxes on the money before depositing it into your IRA account. This tax model is different from a traditional IRA, which taxes the money upon withdrawal. Typically, a Roth IRA is your best option if you expect to have a higher tax bracket once you retire.
To open a Roth gold IRA, you’ll need a self-directed IRA custodian. They’ll help you open the account, purchase your metals, and handle all the reporting required by the IRS. Once your account is open, you can fund it in a variety of ways, including with cash or via a rollover or transfer from another retirement account, like a 401(k), for example.
Gold Roth IRA guidelines
In addition to the post-tax rule, Roth gold IRAs come with a few other guidelines you’ll need to follow, too. For one, there’s a limit to how much you can contribute. With Roth IRAs — and traditional ones, for that matter — you can only contribute up to $6,000 per year if you’re 49 or under and $7,000 annually if you’re 50 or older.
You can continue contributing to your Roth account as long as you would like, even well into retirement. Before 2020, contributions phased out at age 70.5.
Just keep in mind: These contributions aren’t deductible. Because the money has already been taxed, you can’t write Roth IRA contributions off on your tax returns as you can with traditional IRAs.
There are also penalties if you withdraw funds before reaching retirement age. If you take distributions before hitting 59.5, you’ll owe a 10% penalty on the amount withdrawn. The withdrawal may also be taxable as income.
Best Roth gold IRA companies
If you do opt to open a Roth gold IRA, several companies can help you do it. Each one offers slightly different services, fees, and terms, so make sure to compare your options thoroughly before choosing who to go with.
Here are some of our picks for the best gold IRA companies from our partners.
Oxford Gold Group: Best overall
- Open a gold IRA and purchase gold, silver, platinum, or palladium coins and bars
- The first-year fee is $325, followed by a $180 annual fee after that
- Speak to a representative at (877) 544-1523
Oxford Gold Group is a highly rated gold IRA company that can help you set up your account, fund it, purchase your metals, and safely ship and store your investments over time. If using the company to purchase your precious metals, you’ll have access to gold, silver, platinum, and palladium coins and bars.
The company currently has an A+ rating with the Better Business Bureau and 4.9 stars out of 5 on Google reviews.
Goldco: Best for customer support
- Open a gold IRA account and purchase gold and silver coins and bars
- The first-year fee is $260, followed by a $180 annual fee after that
- There is a minimum investment of $25,000 required
Goldco is another well-rated gold IRA company, boasting an A+ rating with the BBB, 4.8 stars out of 5 on Trustpilot, and 4.7 out of 5 on Google.
The company offers a plethora of resources and educational content to help you learn about gold and precious metals investing, and customer service is available via several venues, including email, online chat, and over the phone.
Patriot Gold Group: Best for limiting fees
- Open a gold IRA account and purchase gold and silver coins
- $180 annual fee for accounts under $100,000 and no fees for accounts over $100,000
- Eligible accounts can receive a waived first- and second-year annual fee*
- Speak to a representative at (877) 583-2399
*Accounts under $50,000 can receive a waived first-year fee, while accounts between $50,000 and $99,999 can have the first two years waived.
Patriot Gold Group is a good option if you’re looking for minimal fees. The company charges $180 annually for account balances under $100,000 and zero for accounts over $100,000.
Like the others on this list, Patriot has strong ratings, and you can also purchase IRS-approved metals directly from the company.
Orion Metal Exchange: Best for accounts with a small balance
- Open a gold IRA account and purchase gold, silver, platinum, and palladium coins
- An annual fee of $150 for accounts under $200,000 and $225 for accounts over $200,000
- Has over 50 years of combined experience in precious metals investing
Orion Metal Exchange is a California-based company that offers gold IRAs and a variety of precious metals, coins, and bullion. For gold IRA accounts under $200,000, Orion’s annual fee is just $150, making it cheaper than the others on this list for accounts of this size.
Orion comes with high customer reviews (4.9 stars on Trustpilot) and an A+ rating from the Better Business Bureau.
Roth gold IRA vs. other account types
Roth IRAs aren’t your only option for retirement savings — or investing in precious metals. Want to be sure you’re choosing the right one? Here’s a traditional vs. SEP vs. Roth gold IRA comparison table that can help:
|Traditional IRA||Roth IRA||SEP IRA|
|Who it’s for||Anyone||Anyone||Self-employed people, small business owners|
|Contribution limits||$6,000 (49 and under) $7,000 (50 and up)||$6,000 (49 and under) $7,000 (50 and up)||$58,000 or 25% of your annual compensation (whichever is smaller)|
|Benefits||Allows you to lower your taxable income now||Withdrawals aren’t taxed in retirement||Higher contribution limits|
|Requirements||Must make less than $66,000 (single) or $105,000 (married, filing jointly) to deduct your total contributions||Must make less than $125,000 (single) or $198,000 (married, filing jointly) to make the total contribution||Must be self-employed or work for a self-employed person Employees must work for the business at least three of the last five years|
Is a Roth gold IRA worth it?
There are lots of benefits to opening a Roth gold IRA. Not only can it allow you to avoid costly taxes in retirement, but it can also help you build wealth in the long run.
Roth gold IRAs are also a way to diversify your portfolio and mitigate risk in an economic downturn. They can work as a hedge against inflation, too, should the value of the U.S. dollar decline over time.
If you’re considering a Roth gold IRA as part of your retirement plan, make sure to shop around for your IRA company. Use our gold IRA guide to help get you started.
Author: Aly Yale