How To Set Up A Gold IRA Rollover

An introduction to converting some of your retirement savings into gold and silver

If today's volatile or downright scary economic landscape has you looking for ways to protect your wealth and retirement savings, you are not alone, and you are at the right place.  Many investors like you are increasingly seeking safety for their retirement years by opening their IRAs with gold and turning a prudent portion of their existing IRA's, 401(k), Annuity or other retirement accounts into gold IRAs through gold IRA rollovers. A gold IRA is a powerful option for securing retirement savings against an uncertain economic future. The good news is this once complex investment option is now relatively simple thanks to gold IRA companies, but investors will still be wise to research this topic before diving in; this website was launched to help you do just that, by providing you with reliable gold ira rollover information and reviews.

What is a self-directed IRA?

The Self-directed IRA was born in 1974 along with all IRA's. A self-directed IRA gives investors full responsibility and total control over their investments, allowing for greater diversification than in traditional IRAs, which stick the investor in stocks-and-bonds mode. Investors can store everything from tax liens certificates to real estate in a self-directed IRA. To create the account and purchase investments, self-directed IRA custodians simply complete the necessary documents on their own. Gold and other precious metals are among the investment options open to individuals with self-directed IRAs.

What is a gold IRA?

Also called a precious metals IRA, or gold backed IRA, this is an Individual Retirement Account invested in gold, silver, platinum, palladium or a combination of those metals. Gold IRAs can be divided into two basic categories: traditional, and Roth gold IRAs. Both traditional and Roth gold IRAs involve storage of gold at an IRS-approved depository. Traditional IRAs allow up to $5,000 in pretax income to be contributed each year. When funds are withdrawn during retirement, the money and any capital gains are then taxed. Roth IRA's also allow up to $5,000 to be invested per year, but unlike traditional IRA's the money you deposit into a Roth IRA is after-tax income. When you reach retirement and start to withdraw funds from the IRA, the money and any capital gains is NOT taxed. Thus, Roth gold IRAs make tax-free retirement savings an option for investors who qualify.

There is a third, but highly controversial type of gold IRAs, the so-called Home Storage IRAs, which investors are best advised to stay away from. The IRS Tax code simply does not allow any IRA assets to be kept in your home. The Internal Revenue Code Section 408(a) is explicit: “The trustee or custodian must be a bank, a federally insured credit union, a savings and loan association, or an entity approved by the IRS to act as trustee or custodian.”

Gold Investing Kit

What is a gold IRA rollover?

A gold IRA rollover lets investors turn part or all of their existing IRA investments into precious metals. To convert IRA to gold, investors can work with custodians who are experienced at managing this transition. In fact, choosing a 401k to gold IRA rollover is actually more common than opening a new IRA with gold. For more details on the steps involved in doing a gold IRA rollover or starting a new gold IRA account you can read the following article: Gold IRA Rollover Guide: Step by Step

What types of retirement accounts can be rolled over to gold IRAs?

Several retirement account types qualify for rolling over to gold IRAs:

  • Roth IRA
  • Traditional IRA
  • Simple IRA
  • 401(K)
  • TSP (Thrift Savings Plan)
  • Public Employee 457(B)
  • Public Employee 403(B)
  • Tax-Sheltered Annuity
  • Pension Plan

Some restrictions do apply. For example, investors who want to complete a 401k to gold IRA rollover must be at least 59 1/2 years old or no longer work for the employer that originally set up that retirement account.

What are the basic steps of a gold IRA rollover?

In order to perform a successful gold ira rollover, investors should first speak with a company that handles gold IRAs and fill out the forms required by the IRS. Different options, such as the percentage of the total 401(K) to be converted to gold, must also be decided. Next, investors choose the metals to include in their precious metals IRA. Finally, the chosen metals are sent to the custodian designated by the investor.

Should I buy gold for my IRA? Should I do a Gold IRA rollover now or should I wait?

Gold is a strong choice of investment for its stable value and the fact that it is a tangible asset. If you do not expect to retire in the near future, you would be wise to roll over at least some of your retirement account into gold. However, if you are nearing retirement, you will benefit from carefully analyzing your finances to decide how much of your investments to roll over into gold. This is because the stability of gold value is most apparent when measured over the long term.

Still not sure whether a new gold ira or a gold ira rollover is right for you? This short article might help: Should You Get A Gold IRA?

Is it a good idea to rollover some of my retirement portfolio into gold?

Generally speaking, gold value goes up as paper currency value drops. The reverse is also true. In view of the recent economic recession and the potential for economic turbulence in the future, maintaining at least a portion of an investment portfolio in the form of gold is wise for protection of financial security later in life.

How much of an IRA should be allocated to gold?

The ideal percentage of an IRA that should be invested in gold will differ with individual goals. Generally, investors who believe that the economy will stay fairly stable in the near future may feel comfortable with just five to 10 percent of their IRA in the form of gold. Many investors who recognize the pitfalls of investing in the modern economic climate roll over about one-quarter of their IRA into gold. Finally, investors who want to remain financially secure in the face of inflation and potential recession commonly invest up to one-half of their assets into gold. With larger percentages of gold in an IRA portfolio, investors must be prepared to monitor the gold market carefully to safeguard their expected return.

What rules and tax considerations are notable for a gold backed IRA?

A few rules may interest investors who are preparing to convert IRA to gold. First, the gold to IRA rollover is not taxed at all by the IRS. It is also important to note that precious metals included in gold IRAs must meet fineness standards set by the IRS. Finally, gold IRA investors cannot liquidate their IRA until they are at least 59 1/2 years old.

New gold backed IRA Vs. gold IRA rollover?

Gold IRA rollovers are very similar to new gold IRAs. However, choosing a rollover lets the investor separate retirement account assets into those that are eligible for conversion to gold and those that are not. A gold ira rollover can also facilitate movement of assets from the retirement account of one employer to that of another before eligibility begins at the new place of employment. Once eligibility begins, the assets can be moved into the new retirement plan with ease.

Does the IRS restrict the forms of precious metals that can be included in a gold backed IRA?

The IRS outlines the options available for use in gold IRAs in its Internal Revenue Code Section 408(m). The options are as follows:

American Gold Eagle coins are approved in the increments of one, one-half, one-quarter and one-tenth ounce. Although other gold coins may be eligible, they must be legal tender and at least 99.5 percent pure.

One-ounce silver coins are allowed as long as they come from the Treasury Department mint. Coins issued under state laws and platinum coins meeting regulations listed in 31 USCS 5112(K) can be used. Gold, silver, palladium and platinum bullion except for coin forms can be used as long as it meets fineness requirements and is held by approved IRA trustees.

Gold bullion is easier to trade than coins, which can fluctuate in value based on the collecting market. Coin purchases also carry an increased hazard of fraud and theft, making the choice of dealer and custodian even more important. Investors should specifically avoid coins that are early issue or minted specifically for numismatic collectors as those coins rarely hold their purported value.

Where is gold stored for gold backed IRAs? What is the difference between segregated and non-segregated gold storage? 

The IRS states in its Publication 590 that gold for IRAs must be held by trustees or custodians that are banks, federally insured credit unions, savings and loan associations or other entities that the IRS has approved. In many cases, custodians store gold in private depositories in either segregated or non-segregated arrangements. In segregated gold storage your assets are held separately from other people's assets. In non-segregated or allocated storage, on the other hand, your assets are mixed with the assets of other individuals.

What fees are charged by custodians?

Fees for custodians can vary widely. With different gold IRA companies, separate fees may be charged for storage, administration and customer service. Storage fees are typically based on the current market value of the gold being stored.

No investment should be approached without diligent research and caution, and this is particularly true with gold IRAs. In particular, the choice of gold dealer and custodian must be made carefully. Among reputable gold IRA rollover companies, Regal Assets has earned our recommendation. Regal Assets has an A+ rating from the Better Business Bureau after 10 years in business, and its customer service consistently receives five-star ratings. In partnership with its clients, Regal Assets also ensures that precious metals IRA assets are secure and fully compliant with IRS regulations.

For a quick preview of the top Gold IRA Companies on the market today, see Top Rated Gold IRA Companies.