Opening a precious metals individual retirement account with palladium exposure is also known as a palladium IRA. This vehicle for retirement allows investors to buy each of the four precious metals types including palladium, silver, platinum, and gold in coin or bar form.
It’s important to understand that not every single palladium bar or coin is eligible for purchase through a self-directed precious metals IRA. According to the IRS, they have very specific requirements necessary regarding the amount of palladium contained within each of their designated bars and coins before they receive eligibility. And because of these requirements, there are a wide range of bars and coins made of palladium bullion that does not meet retirement account requirements. They do not have the necessary purity levels designated by the IRS.
Throughout the rest of this article, you’re about to learn all of the necessary things needed to know about the right palladium bars and coins that you can purchase to own as part of your precious metals IRA. We’ll also teach you about the rules and regulations regarding palladium purity so that you know what to look for when purchasing other coins or bars for your account. And we’ll also tell you about the palladium coins that are incredibly popular yet ineligible for an individual retirement account.
Palladium Purity Requirements & More Designated by the IRS
The IRS grants investors the ability to buy precious metals within an IRA account, and buying palladium is one of the available choices. It’s possible to make these purchases and accrue value in your account while experiencing fantastic tax benefits of a tax-deferred or tax-free nature, depending on how you set up your IRA account via traditional or Roth IRA.
These precious metals purchases give investors the opportunity to store, save, and grow their retirement savings in a tax-free or tax-deferred way. Some of the regulations and rules set forth by the Internal Revenue Service regarding self-directed IRAs and palladium include:
- According to the IRS, the most important thing to know and understand about buying palladium for a self-directed individual retirement account is very simple. The purity of the Palladium bar or coin must be .9995% pure or better.
- Palladium investors need to purchase this precious metal and then store it within a depository specifically designated by the IRS. By storing your precious metals in a secured vault, you keep your retirement wealth safe and protected in a facility designed to keep your metals secure. Most precious metals bullion dealers work with a number of different IRA custodians that use their favorite depositories. Two of the most popular depositories include Delaware Depository and Brinks Global.
- A qualified IRA custodian must be appointed to perform all of the transactions and act as the trustee for the account. Your online palladium broker will already have a relationship with one or more highly sought after custodians. They will help you set up your IRA account, help you fund it, and help you purchase palladium to begin accruing value within your account.
Looking to set up an account that will enable you to invest in palladium for your IRA? The best three companies continue to be GoldCo, Augusta Precious Metals Corp, and Noble Gold.
Palladium Coins with IRA Approval
Although there aren’t many acceptable options, the permitted coins consisting of palladium bullion acceptable by the Internal Revenue Service for IRA inclusion are the following:
- Palladium Russian Ballerinas
- Palladium Canadian Maple Leafs
Besides the coins mentioned above, it’s certainly possible that other palladium bullion coins meet the standard purity requirements. They also have to be minted by a national government that qualifies according to IRS rules and regulations. If this is the case, then there are going to be other potential coins that you can include in your IRA account. Speak with your IRA custodian to find out if you’ve discovered something that’s eligible and ask their expert opinion.
Do you already have a precious metals IRA? Are you trying to add new palladium coins to your inventory? If this is the case, then you must follow the rules and only choose acceptable palladium bullion for your IRA account. You have to ignore numismatic coins, commemorative coins, and collectors’ coins at all costs. These coins are more than likely disallowed by the IRS. Even if they aren’t, they are likely incredibly overpriced.
Palladium Bars with IRA Approval
Palladium bars meeting the minimum standards of purity as well as being minted by a COMEX-approved or NYMEX-approved assayer and refinery can be included within an individual retirement account that can hold acceptable precious metals. The most popular platinum bars that have achieved IRA eligibility include:
- Palladium Credit Suisse Bars
- Palladium Baird Bars
Ineligible Palladium Bullion Coins for Precious Metals IRA
As you start your journey toward investing in a palladium individual retirement account, it’s quite important to understand the coins that are ineligible for your account. It is just as critical to learn about as the coins that have full permission. Below is a list of coins made of palladium that do not qualify as precious metals IRA inventory. They include:
- Palladium Australian Emus
- Palladium Isle Of Man US Constitutions
- Palladium Slovak Republic EU Expansion Pentagon Shaped Coins
- Palladium China 100 Yuans
- Palladium China 50 Pandas
- Palladium Portugal Proofs
- Palladium Switzerland Fr.50 William Tells
- Palladium Lafayette Bullion French Fr.100
- Tonga King TaufaAhauTupou IV Coins
In addition to the various coins mentioned above, you should also keep in mind that numismatic coins, collectible coins, and commemoratives may look gorgeous on the outside, but they typically do not meet IRA purity grade levels set forth by the IRS. On top of that, the price to purchase these “special” coins requires paying excessively high premiums.
Be aware that salespeople will try to convince you to buy these unique, scarce, or limited-edition purchases. But reality says that these precious metals are marked up extremely high and they aren’t very rare so the premiums you’ll pay for them aren’t worth the value.
IRA Approved Palladium Investing Benefits
There are a few excellent benefits to buying palladium as part of your self-directed precious metals IRA account. These accounts do not necessarily have to fall prey to the US dollar, because you can hold gold and other precious metals within them. So if the US dollar takes a turn for the worse and begins to decline, you’ll still maintain the full value of your palladium within the individual retirement account.
But even better, when the US dollar begins to depreciate, many investors choose alternative investment options as safe havens and they suddenly begin to flock to platinum, palladium, silver, and gold to safeguard their wealth from depreciation and inflation. These actions will push the price of palladium and other precious metals to new highs, in turn adding a tremendous amount of value to your retirement account.
Another big advantage of palladium investing in a retirement account is the huge amount of money you can make over time. Analysts recognize the value of gold and other precious metals and believe that in the decades to come these precious metals will be worth more than ever before.