Welcome to gold IRA rollover & transfer explained. What is the difference between a gold IRA rollover and transfer, what are the rules and regulations, how to store your IRA gold, when you can take physical possession of your gold, etc. |
Protect your assets with a gold IRA and take advantage of a simple and easy IRS loophole that allows you to hold physical gold and/or other precious metals with the money you already have saved in your retirement accounts, completely tax and penalty-free.
But first, let us explain the difference between a gold IRA rollover and transfer.
Overview
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A rollover IRA is a term for an Individual Retirement Account (IRA) that is funded by moving funds from a 401(k), 403(b), TSP, or similar retirement account into an IRA.
The main difference between a 401(k) and an IRA is that an IRA is normally opened by the individual rather than being offered by an employer.
This type of Individual Retirement Account allows alternatives to stocks, bonds, mutual funds, and exchange-traded funds (ETFs). Among those alternatives are gold, silver, platinum, and palladium.
When performing an IRA rollover, funds from existing tax-advantaged accounts can be rolled over into a new IRA tax-free.
Investors can even roll over funds from multiple retirement accounts into a single self-directed IRA, making it easier to consolidate and manage their retirement savings.
A traditional IRA can be rolled over into a gold IRA, and investors who invest in a Roth gold IRA (physical gold bullion), will not be taxed at all on the gains on their gold investments.
Note that in a rollover, the money being moved is paid to you and you then deposit the funds in the other account.
There is another way to do this, which is called a gold IRA transfer.
In a funds transfer, the original custodian of the IRA transfers the funds directly to the new IRA custodian you designated to receive the funds. You basically never see the money.
This is something you can do at any time with your existing IRA, as long as the assets go from custodian to custodian. Meaning that the distribution check from the old IRA custodian must be made out in the name of the trustee or custodian of the new IRA account that receives the funds.
Transfers may be made as often as you want.
In the processing of starting a gold IRA rollover, you would receive the money from your current custodian, and you would have 60 days from the date you receive the funds to deposit the money in the Gold IRA Company or custodian of your choice.
If you do not complete the transaction within this period, the money becomes a taxable withdrawal and you will face the 10% early withdrawal penalty if you are under 59 1/2.
If you are withdrawing from a personal IRA for a rollover to another IRA, there is no tax withholding, but you can do only one rollover per year.
A transfer is a custodian to custodian move. You do not receive any money, which simplifies the process and helps you avoid possible penalties.
In a direct custodian-to-custodian IRA transfer, you do not have to worry about the 60 day transfer rule since you never receive the money. The transfer is usually accomplished by wire transfer directly between the respective IRA custodians.
The original IRA custodian can also accomplish the transfer by issuing a check made out to the custodian of the receiving IRA and mailing it out.
This is the easiest way to invest in gold through your IRA since it is all handled in the background by your existing and new custodian.
At the end of your IRA term, you can take possession of your gold. Once you are 59 ½ years old, you can liquidate the gold in your self-directed IRA for cash or take physical possession of your gold and other precious metals without penalty.
You have complete control over the precious metals that are purchased, as long as they are IRS-approved bullion.
Your IRA gold must be stored in an IRS-approved depository. You cannot store your gold at home or in a local security deposit box.
Storing your IRA gold at home can be considered a distribution, which means you may lose your tax-deferred benefits and could get hit with a penalty if you’re under 59 ½ years old.
What is more, if the IRS determines that the day your IRA gold entered your home was the date of “distribution,” you could end up paying additional penalties and back taxes owed from the time of distribution.
You can take possession of your gold at the end of your IRA term.
To learn more about the benefits of investing in a gold IRA and how to get started, please request the FREE Gold IRA Guide, or find more information here.
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When reviewing gold IRA companies its critical to compare the ratings and reviews by looking at independent authority sources. We look at the scores given by using 5 independent rating sources that include the Better Business Bureau, Business Consumer Alliance, TrustLink, TrustPilot, and Ripoff Report.
We have looked into Goldco Precious Metals and Regal Assets which are both top rated gold IRA and alternative assets companies.
Please feel free to reach out if you have any questions about the content of this website. If you believe something is explained incorrectly, please send us an email at [email protected].
| Disclaimer: The owner of this website is not licensed as an investment advisor and, accordingly, does not make any recommendations regarding clients’ personal investment portfolios. It is recommended that you carefully evaluate and research the risks and rewards associated with investing in alternative assets such as physical precious metals and cryptocurrencies before you make a purchase. |
Our mission is to provide investors and retirees all the information they need when it comes to precious metals and cryptocurrency investing. We aim to provide a complete guide on the best ways to invest in gold, silver, and crypto.
We believe that investing in precious metals and cryptocurrencies through your IRA or 401(k) is one of the best ways to invest in this asset class, due to the tax-saving component. A gold or crypto IRA is the best way to protect your retirement account and adds financial insurance.
Whether you are interested in gold coins, pure minted bars, EFTs, or gold mining stocks, you will find the information you need on this website to get started on the right foot.
