Like any other investment, there are certain limits on how much gold you can invest in an IRA. The IRS sets specific maximum quantities for gold coins, gold bars, and other forms of gold that can be held as investment assets in IRAs. If you already own gold and wish to add it to an IRA, you may have to sell some or all of it first and then repurchase it later at a later date.In general, the IRS allows you to own one-third of an ounce of gold per person every year in an IRA. This amount can be broken down into smaller increments depending on your specific circumstances. Here is a breakdown of how much gold is acceptable in each type of IRA based on the current price per troy ounce (which fluctuates throughout the year):

Standard IRA

For those who are not yet 59 ½ but have been working for at least 35 hours per week, the standard IRA is the most flexible type of IRA. For this type of IRA, you can put up to a maximum of $5,500 each year in gold coins or bullion. You can also buy gold through a self-directed IRA brokerage account if you have a special relationship with a brokerage firm.Self-employed people who have no access to an employer-sponsored plan or who want to take advantage of a higher contribution limit can still contribute to the self-employed 401(k) plan.

SEP-IRA

For self-employed people who have access to an employer-sponsored plan, the SEP-IRA is a great choice for investing in gold. The maximum yearly contribution for a SEP-IRA is 25% of your net self-employed income, so if you want to put $5,000 per year into gold and your net self-employed income is $50,000, you can contribute $25,000 each year.SEP-IRA contributions get put into a special type of account called a trust. This allows a self-employed person to contribute more than the usual $5,500 limit without creating a complex trust system.You can also open a traditional IRA that is funded with SEP-IRA funds if you want to invest in gold.

Traditional IRA

The traditional IRA is a great place to invest in gold if you have extra cash in your budget and have no access to an employer-sponsored plan. The maximum yearly contribution for a traditional IRA is $5,000, but you can contribute more if you have special circumstances such as a higher income or if you have a long-term plan to retire.The traditional IRA can be the most challenging type of IRA to invest in gold because you cannot buy coins or bars directly; you must buy ETF shares that invest in gold.

Roth IRA

The Roth IRA is the opposite of the traditional IRA. You can’t contribute to a Roth IRA if you’re making a normal income, so if you have extra cash, this is a great place to park it. The maximum yearly contribution for a Roth IRA is $5,000, but you can contribute more if you have special circumstances such as a higher income or if you want to use the Roth as a back-up fund.If you’re willing to sacrifice your current year’s tax returns by contributing to a Roth account for a future tax year, you can also contribute an extra $5,000 to your Roth account for a one-time payment. This is called a “backdoor Roth;” it allows you to contribute a large amount of money to a Roth account without having to pay taxes on the money right away.

Self-Directed IRA

A self-directed IRA is one that allows you to invest in gold in a special type of brokerage account. If you have a special relationship with a brokerage firm, you can open a self-directed IRA account to invest in gold.Self-directed IRAs are extremely flexible and allow you to invest in gold in any type of coin or bar. You can even invest in foreign currencies like the Swiss Franc if you want.

Conclusion

Gold is a great investment for the long-term. It is one of the safest assets you can own, and it has stood the test of time. Unfortunately, the IRS has put some limitations on how much you can invest in gold in an IRA. The amount of gold that you can invest in an IRA varies depending on your age, income, and other factors.You can invest in gold in any type of IRA if you have special circumstances or can find a brokerage account that allows you to buy gold.