
By Tim Schmidt - UPDATED: February 8, 2025
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Investing in gold is a reliable way to protect against loss. Instead of simply purchasing the metal outright, many investors choose to set up an individual retirement account (IRA) backed by it. This way, they get to enjoy the simplicity of managing their assets, along with tax benefits.
However, it's important to remember that setting up this kind of retirement savings account does include fees. Familiarizing yourself with the associated costs from the outset will help you decide whether this type of investment is right for you.
A Disclaimer
Before we go on, you need to know that Gold IRA fees are not the same across the board. While we can certainly describe each fee type and offer an estimate of what you can expect to pay, the actual amount will depend on the Gold IRA company you choose to work with.
What Is a Precious Metals IRA?
If you have never heard of a Precious Metals IRA before, then this section is for you. Simply put, this type of investment allows individuals to save for their retirement. A Gold IRA is a type of self-directed account that gives the individual more control of their investment.
While most IRAs are backed by paper assets, such as stocks and bonds, these accounts hold physical gold, silver, and other precious metals.
Understanding the IRA's Rules and Regulations Regarding Gold IRAs
The Internal Revenue Service (IRS) governs Precious Metal IRAs. Let's take a look at some of its rules and regulations:
- Eligible metals. Not all metals may be held as part of a Gold IRA. In order to qualify, the metal must be gold, silver, platinum, or palladium. The IRS also imposes purity requirements. For example, gold must be 99.5% pure, while silver coins and bars must have a purity of at least 99.9%.
- Storage and custodians. No precious metals held as part of an IRA may be stored at an investor's private residence. Only IRS-approved custodians and storage facilities may be used. This is to ensure the security of these assets and the integrity of the investment.
- Withdrawals. Investors are only able to make withdrawals when they reach the age of 59.5. Early withdrawals may result in penalties and tax implications.
- Annual contribution limits. The IRS also puts a cap on the amount that investors may contribute to their IRA each year. For 2025, the annual contribution limit is $7,000.
An Overview of Gold IRA Fees
The truth is that there are several costs associated with Gold IRAs. From setup to storage fees, there are several that you will have to pay in order to meet IRS regulations.
Fortunately, these costs are usually transparent and charged at a flat rate. This means that they are the same, regardless of the amount you invest. Here is an overview of the fees you can expect to pay for a Gold IRA:
Setup Fee
Also known as an application fee, this one-time payment covers the cost of setting up your individual retirement account. It covers administrative tasks, such as filling out paperwork.
Most Gold IRA companies charge around $50 for setting up accounts, while some impose startup fees of $100 or more.
Wire Transfer/Transaction Fees
In order to set up your account, you will need to transfer funds to your account provider to purchase precious metals. Some investors use wire transfers to do this and will sometimes be asked to pay a small amount (known as wire transfer fees) to do this. The cost is around $30 per transaction.
Annual Account Maintenance Fees
These fees are recurring and are designed to pay for the administration of your account each year. While this may seem like an unnecessary cost, it's important to remember that your Gold IRA company has to maintain records of your investment, as per IRS guidelines.
Gold IRA Storage Fees
If you are hoping to set up a Gold IRA, you must comply with IRS standards, as we've mentioned already. In order to do so, you will need to have your assets stored in an approved depository.
Unfortunately, Precious Metals IRA custodians do not offer their services for free, so you will need to pay storage fees.
It's important to note that segregated storage (which means that your precious metals will be stored separately) costs more than non-segregated storage (all assets are pooled and kept in one place).
On average, you can expect to pay around $100 to $150 annually for storing your assets.
Insurance
Most custodians allow investors to purchase insurance, which ensures that their assets are covered in the event of theft, accidental damage, natural disasters, and more. It is a great idea to invest in good coverage, but keep in mind that it involves premiums.
How to Reduce Gold IRA Fees
Reducing the amount of fees you pay will ultimately result in a more profitable investment, so how can you ensure that you're complying with IRS standards while lowering the associated costs?
Compare Precious Metals Dealers and Custodians
The first step is to do your research. As we mentioned at the start of this article, every Gold IRA company and depository will have its own fee structure. Before you sign up for a retirement savings account, be sure to obtain a quote from multiple service providers. Compare costs to find the most affordable option.
Go for Non-segregated Storage
While storing your assets separately certainly does have its advantages, when you go for non-segregated storage, you can reduce your Gold IRA fees. Keep in mind that precious metal bars and coins often come with unique identification numbers, so you will have the assurance that your assets are not given to someone else.
Think About Tax
Although tax is not a Gold IRA fee, it also affects your investment, which is why we have included it here. It's crucial to consider your tax structure carefully. There are two main types of Gold IRAs that you can set up:
- Traditional Gold IRA. This type of account allows you to save using pre-tax dollars to enjoy greater growth. Your withdrawals will then be subject to taxation during your retirement years.
- Roth Gold IRAs. These IRAs allow investors to save for their retirement using after-tax dollars. This ensures that they will not have to pay tax on their income when they retire.
To determine which account type will be more beneficial to you, it's important to consider your current income and future tax bracket.
If you expect to be earning more in the years to come, a Roth IRA is your best bet. On the other hand, a Traditional Gold IRA will be suitable for those who expect to be in a lower tax bracket when they reach retirement age.
The Bottom Line
Setting up a Gold IRA can be an incredibly rewarding endeavor. When you are no longer able to provide for yourself, this investment can help you cover your living expenses. However, it's important to take note of the associated costs.
Be sure to conduct your research before settling on a Gold IRA company to find the most cost-effective option that meets your needs and saves you money.
You can browse our website for more helpful information on Precious Metal IRAs.
Frequently Asked Questions
1. Will I be penalized for rolling over funds from an existing retirement account into a Gold IRA?
No, you will not be penalized, provided you follow IRS rules for rollovers. If you opt to handle the process yourself, it must be completed within 60 days. Direct rollovers that are handled by the associated trustees will likely not incur any penalties.
2. Do Gold IRAs cost more than Traditional IRAs?
Yes, individual retirement accounts backed by precious metals typically involve more fees than other types of IRAs. That's because the metals must be stored with an IRS-approved depository, resulting in higher storage fees.
Nevertheless, gold and other precious metals are safe-haven assets that can diversify one's investment portfolio and serve as an inflationary hedge.
3. Should I invest in gold?
If you haven't already added a precious metals investment to your portfolio, then we highly recommend doing so. This will help you protect against potential loss and ensure that your money is spread out over different types of assets, lowering the overall risk.
4. What other fees may apply?
In addition to the fees we mentioned already, you may also be charged a 10% penalty if you decide to make early withdrawals. Keep in mind that there may be qualifying reasons for withdrawing your contributions before the age of 59.5, so be sure to talk to your custodian if you need access to your retirement savings.