Another name for a self-directed IRA with exposure to physical platinum is oftentimes called a platinum IRA. These individual retirement accounts will grant investors the opportunity to invest in precious metals including silver, palladium, gold, and platinum. In this account you can purchase bars or coins, but some types of platinum aren’t going to be acceptable within a precious metals IRA, so keep that in mind.
The Internal Revenue Service puts these restrictions in place because they have guidelines regarding the amount of pure platinum needed within each coin and bar in order to qualify for an IRA. Although it might not seem fair, there are many historically significant platinum bars and coins that aren’t allowed to get purchased within a platinum precious metals individual retirement account. Why? They do not meet the purity standards set forth by the IRS, which is set in stone.
Throughout this article, we intend to teach you which types of platinum bars and coins are capable of being held within your precious metals IRA inventory. We’ll also tell you about the regulations that must be adhered to when you have this type of account, and the types of coins containing platinum that aren’t actually acceptable to own within a platinum IRA account.
Platinum Requirements from the Internal Revenue Service
As you can imagine, the IRS is very strict as far as their requirements are concerned, but it’s possible to purchase platinum to own within a precious metals IRA. Buying these precious metals like platinum and holding onto them have their advantages because they accrue value over time and when you take a distribution, you receive this money tax-free because the taxes are paid in advance.
As an investor focused on the future, you have the ability to purchase precious metals, save them, and build up your retirement account in either a tax-deferred or tax-free way, depending on how you set up your account. Just remember to focus on the regulations and rules set forth by the IRS in regards to precious metals purchases including the following information that we’re about to share:
- The regulation with the most importance mandated by the IRS regarding platinum has everything to do with purity levels. The IRS stipulates that all coins and bars made of platinum purchased within a precious metals IRA need to contain specific purity levels. They include levels of .9995, which translates to 99.95% purity.
- Custodians that are qualified to manage a self-directed IRA must remain as account trustees. It’s your choice to choose the precious metals dealer/broker who you intend to do business with. You’ll typically have a choice between a number of different custodians to choose from that will help you create your IRA account as well as purchase platinum bullion to invest in that will allow your account to grow over time.
- After you purchase precious metals including platinum in your IRA account, you must store the platinum within a depository that is already pre-approved by the IRS. These vaults were created to safely store and protect all of your precious metals by keeping them secure in an ironclad vault. The wide majority of dealers in bullion work with a number of different custodians for precious metals IRAs as well as a wide range of depositories that they trust. Two of the biggest depositories include Brinks Global Storage in Delaware Depository.
Platinum IRA Coins Approved by the IRS
Keep reading to discover the IRS approved platinum bullion coins that you can purchase within your precious metals IRA. They include:
- Platinum American Eagle Coins
- Platinum Australian Koala Coins
- Platinum Canadian Maple Leaf Coins
- Platinum Isle Of Man Coins
- Platinum South African Krugerrand and Coins
- Platinum Austria Vienna Philharmonic Coins
Besides the coins that I just mentioned above, you could potentially find other types of platinum coins that meet the minimum requirements of 99.95% purity. If you do find this type of platinum precious metal, it’s certainly possible that it’s purchasable within a platinum IRA.
As you begin stockpiling precious metals within your self-directed IRA, make sure that you always purchase bullion approved by the Internal Revenue Service. You want to avoid purchasing commemorative coins, collectible coins, or numismatic coins at all costs. More than likely, the wide majority of the coins mentioned above aren’t going to be acceptable within a precious metals retirement account. Even worse, these coins are usually sold with a hefty price tag and you’ll pay a lot more than they are actually worth.
Platinum IRA Bars Approved by the IRS
As far as platinum bars go, just like with platinum coins, they need to adhere to strict purity standards in order to qualify to be purchased within a precious metals IRA. They also need to be manufactured by a NYMEX-approved or COMEX-approved assayer in order to be granted the right to get purchased within a platinum IRA account. Out of all of the platinum bars available, the following are the acceptable choices to purchase and hold within a precious metals IRA. They include:
- Platinum Valcambi Bars
- Platinum Credit Suisse Bars
- Platinum PAMP Suisse Bars
- Platinum Engelhard Bars
Platinum Coins Not Allowed by the IRS
Once you begin investing in platinum, you have to focus on the fact that the IRS doesn’t allow you to keep certain types of this precious metal within your IRA account. It’s also important to keep the legal ramifications in mind. Look at the list below of platinum coins that you aren’t allowed to purchase as part of your precious metals IRA inventory. They include the following:
- Platinum China Panda Coins
- Platinum Somalia Elephant Coins
- Platinum Swiss Shooting Thaler Coins
- Platinum Cook Islands Coins
- Platinum Olympics Proof Tonga Soul Coins
Besides the coins mentioned above that you should avoid, it’s also necessary to steer clear of all of the commemorative, numismatic, and collector coins as well. Although these coins look beautiful and they possess their own value in a certain way, they aren’t acceptable by the IRS as far as precious metals IRA investments are concerned.
They also require paying a very high premium to purchase these coins. Many sales representatives are opportunistic and want to convince you that you’re purchasing a rare, limited-edition, or unique coin. But in fact these coins are marked up a great deal by the retailer and rarely will they end up selling for the high premium price you have to pay to purchase them.
The Major Benefits of Buying Platinum within a Precious Metals IRA
As you’ll see there are number of great benefits to make the most of as you use your retirement funds to buy platinum in a precious metals retirement account. These accounts are exciting because they aren’t focused on the US dollar like most retirement accounts including 401(k)s. The US dollar is in a major decline, but this loss of value isn’t going to hurt your platinum account whatsoever. In fact, it will probably help your precious metals IRA grow since investors tend to move into precious metals as a safeguard when the US dollar and other assets like stocks, bonds, and mutual funds begin to depreciate. It’s a rule that as the dollar loses its value, platinum, gold, silver, and palladium tend to gain additional value. And platinum is even a rarer commodity than gold, which makes it an excellent investment indeed.