Gold IRA Rollover: Physical Gold Self-Directed IRA Starter's Guide

Gold IRA Rollover: Physical Gold Self-Directed IRA Starter's Guide

Thinking about investing in gold with your retirement account? Diversifying your retirement portfolio with a gold IRA rollover popular choice for retirement to keep your nest egg in more than one basket.

You read that right.

A quick refresher, a gold IRA is an Individual Retirement Account with precious metals such as gold, silver, platinum, and palladium. This is a way for investors to diversify their retirement portfolios to avoid market uncertainty.

Start the rollover & transferring process with our step-by-step below.

Starting the Rollover Process to Physical Gold

Before you move your IRA to gold, here is a run-down of how the process works when you speak with a custodian. If you are looking for an investment that has been reliable and stable during its lifetime you should consider a rollover.

What Types of Retirement Accounts Qualify For Gold IRA's?

What Types of Retirement Accounts Qualify For Gold IRA's?

Any existing Traditional IRA can be transferred including a Roth IRA, SEP IRA, Simple IRA, or a Self-Directed IRA to a gold IRA. If you are rolling your 401(k) to a gold IRA account that is inactive you can also qualify. Meaning you are not working at that company any longer.

If you are the age of 59.5 or older and have a 401(k) plan through an existing employer, you can apply for an "in-service" distribution. This allows you to do a partial rollover.

403(b) plans qualify and are for employees of public schools and tax-exempt organizations. This type of retirement plan can only be rolled over when employment has ended. In certain cases, you can perform an "in-service" distribution.

457(b) plans are qualified for this investment type and are plans offered to state and local government employees. With this type of plan, you must complete your employment to be able to qualify or in some cases if you are still working at 70.5.

A TSP (Thrift Savings Plan) is a government-sponsored retirement account for Federal employees including the military and civil servants. Once you have completed employment, you are eligible for a rollover with this plan. In some cases in this plan, you will be able to perform a partial gold IRA once you've reached the age of 59.5.

Considering the Price of Gold

In August 1999, the gold price was $255 and in September 2011, it reached a high of $1,839. As of January 2021, it is $1,855 an ounce showcasing massive growth in the price of this precious metal over time.

This price and the many other benefits of gold have interested Americans looking to diversify their IRA into metals such as platinum, silver, and palladium. This is different compared to the usual assets you see in an IRA such as stocks, cash, bonds where regular IRAs are limited. The possibility of using gold in your IRA began by Congress in 1997.

Don't Forget: A Rollover and Transfer Are Different

While both of these terms sound similar on their own, they actually have different meanings in retirement investments based on the IRS. The IRS makes this distinction clear between both the transfer and rollover. The IRS states in a rollover, the money that is being moved is paid directly to you to then deposit those funds into the other account. While with a transfer, the IRS states the original custodian transfers the funds to the new IRA custodian without you receiving them directly.

The Steps to Rolling Over Your Retirement Savings

First, you will need to fill out an application with a reputable gold IRA company which will then reach out to you. They will help you go through the process of transferring retirement funds and then placing an order for your IRA.

1. Fill Out an Application - First things first is you will need to fill out a request form so a custodian can get in contact with you to start the rollover steps. Once complete a custodian will reach out to you to transfer funds and eventually place an order.

2. Transfer Funds - The precious metals IRA company will then walk you through transferring your money so you can begin purchasing metals for your account.

3. Place an Order - When funds are received you will be able to place an order on the type of precious metal you are interested in from a bullion dealer such as a gold bar or gold bullion coins like the American Gold Eagle. These will be stored in an approved depository. The storage fees can vary but are competitive. It is important to consider this fee when choosing a custodian. The fees can vary.

Acceptable Precious Metals For Your Retirement IRA

  • Mint Coins
  • Bars and bullion
  • American Gold Eagles, Gold American Buffalos, Gold Canadian Maple Leafs, and more.

Other investment options such as gold mining stocks are not accepted in an IRA. Any type of gold-company stock etc.

Choosing How Much Gold to Allocate Into Your IRA

Choosing How Much Gold to Allocate Into Your IRA

When performing a rollover, plan how you invest your savings with an investment strategy based on your needs. The #1 question investors usually ask is "How much of my portfolio should I allocate into precious metals?" While there isn't one clear answer since everyone's portfolio and investment needs are different, billionaires and famous investors stick to 5-10% of their funds into gold. (Tony Robbins and Kevin O'Leary to name two)

Rules When Diversifying Your Retirement Savings

In an IRA rollover, you will receive the assets from your current custodian. From there you have 60 days to deposit the money into a custodian or gold IRA company. If you are unable to complete this deposit within 60 days, the funds become a taxable withdrawal and you face a 10% early penalty withdrawal fee if you are aged under 59 1/2. If you choose to withdraw from your personal IRA for a rollover to a different IRA, no tax withholding is present. Keep in mind that you can only do a rollover once a year. Remember to check the account fees and any other fees associated with the account. These fees can decrease your investment success potential.

Reasons to Consider Investing Gold into Your Individual Retirement Account

1. Tax Advantages

You have to remember that converting gold to an IRA plan is still an IRA account. When you save away a decent chunk of your annual earnings, these are not taxed in the here and now. They are taxed only after you've taken them out or only after they've probably grown in value. How awesome is that?

This means that you save money on taxes now but also you save for your future.

You win twice as a gold owner.

A lot of people who are thinking of this retirement account often overlook this advantage. In fact, this is one of the most foundational advantages of IRA accounts.

2. Shelters Your Wealth From Currency Devaluation

The U.S. dollar hasn't exactly suffered the kind of currency meltdown that you would normally find at other parts of the world. Make no mistake about it; the U.S. dollar does go through devaluations. While the devaluation doesn't have to be very steep, it does happen.

Considering the fact that the U.S. Federal Reserve is just going crazy with printing trillions of dollars every single year; it is not a surprise that the U.S. dollar is buying less and less.

When you park your investment assets into a metal-backed account, you shelter your wealth from currency devaluation. Why? You're investing in gold. This metal has historically been proven to beat inflation.

It has beaten inflation in the past, it is beating it now and it will continue to beat inflation way into the future. That's how powerful gold is as an inflation fighter.

3. High Demand With Solid Gold Prices

While there are many other metals out there other than gold and many of them are enjoying valuations that are higher, those advantages are temporary. The reality is that gold has a strong industrial and baseline demand. Add on to this the fact that people invest in metals and you have a very stable investment base that is not prone to wild swings in the gold price.

Avoiding Penalties in Taxes When Doing a Rollover

Avoiding Penalties in Taxes When Doing a Rollover

Keep in mind that the federal law governing IRAs and individual private pensions allow for all funds that you are rolling over to be transferred to your gold IRA rollover account. You have to be very careful about this.

This is not your personal account that you could withdraw from. Sure, you can withdraw from this pool of savings; however, you will be facing a stiff penalty. Speak with a financial advisor specialist to better understand this system and safely invest in bullion with a solid gold IRA custodian.

Avoid the Risks With Scammers & Choose a Reputable Custodian With Reliable Reviews

Take it from us, there are always bad brokers out there looking to scam people with hidden fees and more. We feature an analysis of these gold IRA scams and go over the best ways to these fees and protect your retirement.

What You Need to Do Next

Rolling over your investments is a popular option for people looking to avoid the uncertainty of the stock market. Become an expert BEFORE you speak to a custodian.


Bullion guide for readers.

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