Gold investments in IRAs
Are there any prohibitions against owning gold through an Exchange Traded Fund such as GLD in an IRA, or does the prohibition only apply to the physical coins and bullion? Thx
Are there any prohibitions against owning gold through an Exchange Traded Fund such as GLD in an IRA, or does the prohibition only apply to the physical coins and bullion? Thx
Permalink Submitted by Alan Spross on Thu, 2009-11-12 02:24
GLD is allowed in an IRA because it meets the exception in Sec 408(m) due to the backing of actual gold bullion held by a trustee. The following is the code section:
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(3) Exception for certain coins and bullion
For purposes of this subsection, the term “collectible” shall not include –
(A) any coin which is –
(i) a gold coin described in paragraph (7), (8), (9), or (10) of section 5112(a) of title 31, United States Code,
(ii) a silver coin described in section 5112(e) of title 31, United States Code,
(iii) a platinum coin described in section 5112(k) of title 31, United States Code, or
(iv) a coin issued under the laws of any State, or
(B) any gold, silver, platinum, or palladium bullion of a fineness equal to or exceeding the minimum fineness that a contract market (as described in section 7 of the Commodity Exchange Act, 7 U.S.C. 7)3 requires for metals which may be delivered in satisfaction of a regulated futures contract, if such bullion is in the physical possession of a trustee described under subsection (a) of this section.
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