Gold Kangaroo IRA Eligibility: Adding Coins to Your Retirement Account

Key Takeaways

•Gold Kangaroo coins meet all IRS requirements for Precious Metals IRAs

•.9999 purity exceeds the IRS minimum of .995 for gold

•Perth Mint legal tender status satisfies government-minting requirements

•IRA gold must be held by approved custodians at approved depositories

•You cannot take personal possession while coins remain in your IRA

IRS Requirements for IRA Gold

The IRS permits certain precious metals in Individual Retirement Accounts (IRAs), subject to specific requirements. Gold must meet minimum purity standards, and certain coins and bars qualify while others don't.

For gold, the IRS requires minimum .995 fineness (99.5% purity). Gold must be produced by a national government mint or a refiner/assayer/manufacturer accredited by certain organizations.

The Australian Gold Kangaroo exceeds these requirements: its .9999 purity surpasses the .995 minimum, and its Perth Mint origin provides government-mint status.

Why Gold Kangaroos Are Ideal for IRAs

The Gold Kangaroo's combination of high purity and government origin makes it particularly suitable for IRAs. Some custodians that are strict about purity requirements may prefer .9999 fine gold specifically.

As Australian legal tender, Gold Kangaroos have strong recognition and liquidity, important factors when you eventually take distributions from your IRA.

The Kangaroo's established market since 1986 and ongoing Perth Mint production ensure consistent availability for IRA purchases.

Comparing Kangaroo and Eagle for IRAs

Both Gold Kangaroo and Gold Eagle are IRA-eligible. The Eagle's .9167 purity exceeds the .995 minimum because it's specifically exempted as American Eagle bullion in IRS code.

Choose between them based on personal preference, availability, and pricing rather than IRA eligibility. Both qualify equally.

How IRA Gold Ownership Works

IRA precious metals ownership differs from personal possession. You need a self-directed IRA with a custodian that handles precious metals. The custodian facilitates purchases and storage arrangements.

IRA gold must be stored at an IRS-approved depository. You cannot keep IRA coins at home or in your bank safe deposit box. The custodian arranges storage with facilities meeting IRS requirements.

When you take distributions (required minimum distributions after age 72, or voluntary withdrawals), you can receive the physical coins or their cash value.

Costs of IRA Gold Ownership

IRA gold involves additional costs: custodian setup fees ($50-$300), annual custodian fees ($75-$300), storage fees ($100-$300/year), and potential transaction fees.

These costs should be weighed against tax advantages. For some investors, the costs offset benefits; for others, tax-advantaged growth justifies the expenses.

Questions & Answers

Common questions about Australian Kangaroo Gold coins answered by our editorial team.

Why are Gold Kangaroo coins IRA-eligible?

Gold Kangaroos meet all IRS requirements: .9999 purity exceeds the .995 minimum, they're minted by a government mint (Perth Mint), and they're recognized legal tender. These factors make them approved assets for Precious Metals IRAs.

Can I take physical possession of my IRA Gold Kangaroos?

Not while in the IRA. IRS rules require IRA precious metals to be held by an approved custodian at an approved depository. Taking possession triggers a distribution with tax consequences. When you take a distribution, you can receive the physical coins.

What are the costs of holding Gold Kangaroos in an IRA?

IRA costs include: custodian setup fees ($50-$300), annual custodian fees ($75-$300), storage fees ($100-$300/year), and any transaction fees. These costs should be weighed against the tax advantages of IRA ownership.