Rollovers allow your traditional, Roth or SEP IRAs to invest in precious metals like gold. This process is known as rollover.
Be wary of overpriced gold IRA companies using conservative celebrity spokespeople as bait to attract investors unwittingly – they may receive large commissions for marketing services rendered.
Select a reliable precious metal dealer with an unblemished public standing and provide secure storage solutions.
What is a rollover?
Rollovers are an investment strategy used to transfer retirement funds between investment accounts. Their primary objective is avoiding taxes and penalties on distributions from an old IRA or employer-sponsored 401(k).
Direct rollovers are by far the easiest and simplest method of rolling over, wherein the new IRA provider sends you a check with clear instructions for depositing it into your new account. An indirect rollover may be possible in which you withdraw money from your old account, move it to your new IRA, and then deposit it yourself within 60 days; this approach can lead to additional tax complications.
Investors looking to open a gold IRA should select a custodian or broker that provides an extensive range of products and services at reasonable fees with dedicated customer support, such as RC Bullion, Augusta Precious Metals, American Hartford Gold, Noble Gold or Patriot Gold who all boast these advantages.
How does a rollover work?
If you want to transfer assets from an old employer’s retirement plan into an IRA or other eligible account, request a distribution from its administrator and deposit it. Most distributions will include 20% withholding for taxes; unless provided a special form to increase this percentage further.
Once a distribution has been received, you have sixty days to deposit it in an eligible retirement account or it will be considered a taxable withdrawal and subject to penalties and taxes. Capitalize can help identify and move multiple retirement accounts into an IRA under your control without charging account fees – while simultaneously managing all your investment accounts at one low annual fee. It has an established track record in helping individuals consolidate their retirement savings accounts.
What are the advantages of a rollover?
A precious metals rollover allows you to move funds from an existing IRA into a self-directed account that holds physical gold and silver. Once chosen, the custodian of your new IRA will purchase and store these precious metals on your behalf.
If you choose a direct transfer (commonly known as trustee-to-trustee or in-kind rollover) from an IRA, 401(k), 403(b), or 457(b) plan into a gold IRA without incurring taxes, assets can be moved tax free. However, any check received from your previous provider that has yet to be deposited within 60 days into your new self-directed precious metals IRA will be taxable and considered distributions from that source.
When choosing a precious metals IRA dealer, ensure they are transparent and fair priced. Be wary of websites claiming to rank “Best Gold IRA Companies”, as these affiliates could potentially earn commission from the very IRA dealers they recommend – see Conflict of Interest for more details.
What are the disadvantages of a rollover?
Rollovers are one of the easiest and safest ways to transition your funds from an old retirement plan, like a 401(k), 403(b), or 457(b) into a self-directed gold IRA. Incorporating this strategy helps maintain tax deferral status on retirement account funds – meaning less risk than traditional withdrawal. You will receive a check from your former employer with 60 days to deposit it into your new account or face a 10% penalty (if under 59.5 years of age).
As soon as your funds arrive, it’s time to select the precious metals you wish to purchase (only certain bullion products qualify as investments within an IRA). Your new IRA custodian will work with a dealer in order to complete this transaction and ship your precious metals securely depository. Be wary of dealers that claim you can store precious metals at home as this violates IRS regulations; also note that buy/sell spreads offered by dealers tend to be significantly higher than with established gold IRA companies.