Inherited IRA to Gold - My experience and what I'm thinking now

Andrew Roberts

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Inherited IRA to Gold - My experience and what I'm thinking now

andrew_roberts👑Elite (1m-5m)

about 1 month ago

Key Takeaways

•I wanted to share my journey with an inherited IRA, specifically converting a portion to physical gold.
•My father passed away a few years back, leaving me a substantial IRA – about $1.7M at the time.
•My wife and I discussed our options extensively.

See what your 401(k) could look like in gold

I wanted to share my journey with an inherited IRA, specifically converting a portion to physical gold. My father passed away a few years back, leaving me a substantial IRA – about $1.7M at the time. My wife and I discussed our options extensively. I’m a big believer in hard assets, always have been, especially since I retired from the construction game. We already had a fairly significant metals allocation in our personal portfolio, but the inherited IRA was still primarily in paper assets.

The thought of having such a large sum exposed to market volatility, especially as I'm getting older here in Palm Beach and not as keen on watching tickers all day, just didn't sit right. We decided to convert roughly $500k of that inherited IRA into physical gold, specifically American Gold Eagles and Canadian Gold Maple Leafs. The process itself was fairly straightforward, working with a reputable dealer that specialized in Roth and traditional IRA rollovers. They handled the custodian transfer and direct purchase. It wasn't completely without its frustrations – the paperwork is always a drag – but I felt much better once those coins were safely vaulted. The peace of mind alone was worth it.

Now, with the market doing… whatever it's doing, I’m feeling pretty good about that decision. Gold has held its own, and the dollar cost averaging in my other accounts has softened some of the recent blows. I'm starting to think about my own RMDs from this account eventually. Has anyone else used the RMD Calculator to project their distributions, especially from an inherited IRA with physical metals? I’m curious about understanding the tax implications over the next few years and planning accordingly. Any insights from those who have navigated the RMDs on physical gold would be greatly appreciated.

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8 comments

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Best Answer▲ 11 upvotes

timothy_reed💎Premium (500k-1m)

Interesting post. I've been in gold for a while now, and while I get the appeal of converting an inherited IRA, I actually think folks might be missing a bigger picture for long-term secure wealth. The tax benefits are undeniable, but honestly, having a chunk of real, physical gold outside of any IRA structure, fully within your direct control, feels a lot more secure to me these days than anything tied up in reporting requirements. Just my two cents from Madison, Wisconsin; the IRS doesn't need to know about every single ounce you own, especially when things get truly turbulent.

Comments (8)

charles_lewis💎Premium (500k-1m)Real Investor•about 1 month ago

Wow, that's a significant amount to inherit, and it sounds like you've been really thoughtful about managing it. You mentioned converting "a portion" to physical gold. Are you comfortable sharing what percentage of the $1.7M you ended up allocating to gold, and why that specific amount?

brian_edwards🌟Ultra (5m+)Real Investor✓ Verified•about 1 month ago

Interesting read! While I totally get the desire for a tangible asset like gold, especially with an inherited IRA, I wonder if you considered the liquidity aspect more heavily. Physical gold is great for long-term holds and inflation hedging, but it's not exactly something you can sell off quickly and easily if an unexpected financial need pops up. Plus, the bid/ask spread on physical can be a bit of a drag compared to, say, ETFs or even just keeping a diversified portfolio of traditional assets. Just some food for thought on a different angle.

nancy_hall💰Established (100-250k)Real Investor•about 1 month ago

Hey, thanks for sharing your experience! This is super timely for me. I'm in a similar boat, though with a much smaller inherited IRA. My grandma left me a traditional IRA and I've been debating what to do with it for ages. I'm seriously considering a partial conversion to gold, probably not as much as you did, but enough to feel more diversified. Hearing your perspective definitely gives me some food for thought, especially about the long-term hold.

timothy_reed💎Premium (500k-1m)Real Investor•about 1 month ago

Interesting post. I've been in gold for a while now, and while I get the appeal of converting an inherited IRA, I actually think folks might be missing a bigger picture for long-term secure wealth. The tax benefits are undeniable, but honestly, having a chunk of real, physical gold *outside* of any IRA structure, fully within your direct control, feels a lot more secure to me these days than anything tied up in reporting requirements. Just my two cents from Madison, Wisconsin; the IRS doesn't need to know about every single ounce you own, especially when things get truly turbulent.

catherine_bell🏆Advanced (250-500k)Real Investor•about 1 month ago

Inherited IRA, huh? That's a whole different ballgame than rolling over a 401k, which is what I did. My grandfather, bless his frugal heart, had a pretty substantial pot of money sitting in a traditional IRA that he'd been compounding since before I was born. When it came to me about five years ago, I was still mostly in growth stocks and feeling pretty good about it. But the lump sum of that inherited IRA, even after taxes, was enough to make me seriously rethink my portfolio's overall stability.

I distinctly remember sitting at my kitchen table in Spokane, spreadsheet open, and just staring at the numbers. Most of my friends were still YOLO'ing into meme stocks, but the thought of that inherited capital being subjected to the same volatility felt… disrespectful to his memory, almost. That’s what pushed me into looking at physical gold within an IRA. It took a good six months of research, talking to multiple custodians, and really digging into the storage fees. Ended up going with APMEX for the actual metals and Equity Trust for the custody. The initial setup felt like a marathon of paperwork, but now, knowing a significant chunk of

paul_hill🏆Advanced (250-500k)Real Investor✓ Verified•about 1 month ago

That's a tough spot to be in, but good on you for thinking strategically about that inherited IRA. I went through something similar about five years back with a chunk of my father-in-law's old 401k sitting in an inherited IRA. Rather than just rolling it into a standard brokerage account, I opened a *new* Gold IRA specifically for that sum. The diversification has been a godsend; it’s kept that portion of my wealth insulated during the market jitters we’ve seen. You really have to scrutinize the custodian fees though – they vary wildly and can eat into your gains if you're not careful. I'm in Salt Lake City, and finding a local depository that offers competitive rates was key for peace of mind.

richard_garcia👑Elite (1m-5m)Real Investor•about 1 month ago

My advisor told me 10-15% in gold is the sweet spot but I went heavier. We'll see how it plays out.

barbara_white🏆Advanced (250-500k)Real Investor✓ Verified•about 1 month ago

Interesting read, OP. I went the gold IRA route with a significant chunk of my retirement savings a few years back, after rolling over an old 401k. The initial setup felt a bit daunting, but the tax advantages were a huge draw. I'm based in Portland, and honestly, seeing the market volatility lately just reinforces my decision to have a solid portion in precious metals. Makes me sleep a bit easier, anyway.