If you’re considering a gold IRA rollover, it can be helpful to understand what this process entails. Before deciding whether the gold IRA rollover is right for you and your retirement account, there are many factors to consider. For instance, do you want to transfer an existing retirement account or open a new one? How much should you invest in the metal of your choice? This guide will answer these questions and more!
Gold IRA Rollover vs. Gold Transfer
When deciding whether to roll over or transfer your IRA, numerous factors come into play. One of the main differences between transferring and rolling over is how much control you maintain over the account. When gold IRA rollovers take place, a trustee-to-trustee transaction occurs, meaning no assets leave your possession until they are received by the trustee of your new gold IRA.
Types of accounts you can rollover
There are several types of retirement accounts that you can choose to roll over into a gold IRA. The most common are 401(k)s and 403(b)s, but other options include 457 plans, traditional IRAs, Roth IRAs, and Simple IRA accounts.
Depending on the type of account you choose to roll over into your gold IRA, some may have more restrictions than others regarding how much money can be rolled in each year. For instance, with a 401(k), only $18,000 can be added in 2015. The limit for a traditional IRA is $55,000.
Rollover process breakdown
First, you will need to choose a gold IRA provider. As you are searching for one, make sure to compare each provider’s fees and minimum investment amounts on top of perks like free storage options.
Once you find an acceptable company, decide how much money you want to roll over or transfer into your new account. You will also need to choose whether you would prefer to transfer or roll over the assets from your old account. Keep in mind that if you are transferring an existing account, any gains it has earned may be taxable until those funds reach their designated destination. Therefore a rollover option can be more appealing to some investors looking to minimize taxes on current income. For a the full rollover process broken down, visit the link.
Finding IRA Gold provider
Assuming you have already determined that a gold IRA is the right move for you, the next step is finding a reputable and qualified provider. This can be done by searching online for “IRA Gold providers” or similar terms. When reviewing potential companies, make sure to look at reviews from both customers and industry experts to get a well-rounded perspective.
How to choose a custodian for your gold IRA rollover
When you’re ready to roll over your retirement savings into a gold IRA, the next step is finding a trustee or custodian. This is an important decision, as your trustee will be responsible for holding and safeguarding your metals until you reach retirement age. They will also help with the administration of your account, including processing distributions and contributions.
Do they have experience working with precious metals IRAs? What services do they offer? Will they help you choose which type of metal to invest in? Are there any storage fees charged on top of the cost of the metal itself? How long have they been in business? Do their customer reviews reflect it’s a safe investment with historically low inflation rates — the value of gold typically rises when other investments, such as stocks and bonds, are faltering. This makes it an ideal choice for those looking to protect their assets from erosion during times of economic uncertainty. Gold also has a low correlation to other asset classes, meaning its price movements aren’t always directly tied to the stock market or real estate values.
Metals are delivered and stored in the depository.
Your metals are stored securely and insured in a professional depository, where you don’t have to worry about finding somewhere to store your bullion at home or taking possession of it yourself. If something happens to your precious metals while they’re in storage (theft, damage, natural disaster, etc.), they are covered by the depository’s insurance policy.