Recently, a lot of people have begun investing in self directed IRA in precious metals. This article addresses people specifically interested in purchasing gold coin for an IRA. Most importantly, you will want to make sure that you purchase gold of a proper fineness standard. Coins such as the Canadian Maple Leaf, as well as US Eagles are sufficient because they are .999 pure. The government only cares about the amount of precious metal your coin contains. "Certifications" such as those offered by organizations like the PCGS or NGS do not matter in the eyes of government; they only matter to collectors.
Sometimes, uninformed buyers will accidently invest in "proof" gold coins to put in their IRA. This is a mistake. "Mint state" and "proof" are different. You will pay more for proofs because they are minted to a higher standard than regular coins. They require more labor in order to make product of higher quality, and it is this labor that constitutes the difference in their pricing; both mint state and proof coins are made from the same amount of precious metal, and in the eyes of the government they remain of equal value for this reason.
Self Directed IRA's can consist of any variety of different precious metals and other assets. If you are exclusively interested in gold, however, it will benefit you to avoid opening your account with any of the larger banks. They will try to charge you various, unnecessary administrative fees. Smaller, more specialized organizations such as New Direction IRA or GoldStar will cut down on the amount of red type with which you have to deal when putting together an IRA in gold.
You may ask what, exactly, is the responsibility of the IRA administrator? The administrator will handle all of the payments you sign up to make to the person or organization from whom you buy the gold in either a 401k in an IRA so that you don't have to worry about any of the involved paper work.
According to IRS regulation, you cannot privately hold the gold coin or bars in your self directed IRA. You are required to store them in a safety deposit box, or other secure location. You can choose between two types of storage: "fungible" or "segregated." "Fungible" means that your materials will share a space with those of others; "segregated" means that your coins will remain on their own, and therefore guarantee that when you go to cash them in, they will literally be the same ones you deposited previously. Most depositories will charges you a small fee to hold your materials. Generally, they will charge you slightly more for segregated storage.