Are you looking into a Goldco gold IRA and want to know how the gold IRA rollover process works? In this ultimate gold IRA rollover guide, we will explain how to roll over your existing IRA into a Goldco gold IRA.
Current Goldco Promotions
For a limited time, Goldco offers up to 10% of your order in FREE silver! Meaning that if you purchase metals for $100,000, you get $10,000 in FREE silver!
The company also offers the highest buy-back guarantee on the market.
With that said, let us get back to the topic on how to rollover your 401(k)/IRA into a precious metals IRA!
Since this is a comprehensive guide, feel free to use the quick links to jump straight to any section:
- What Is A Gold IRA?
- Benefits Of A Gold IRA
- 2 Different Types Of A Gold IRAs
- Goldco Gold IRA: The Gold IRA Company You Should Work With
- What You Will Need From Your Gold IRA Company
- Check For Ongoing Support
- How To Fund Your IRA
- Moving The Money Into Precious Metals
- IRA Eligible Bullion
- Popular Bullion Choices For A Gold IRA
- Where Will The Gold Bullion Rest?
- Managing The Precious Metals In Your Account
- What Kinds Of Fees Will My Goldco Gold IRA Have?
- Building A Gold IRA That Lasts
- Pros And Cons Of Goldco Gold IRA
- How To Open A Goldco Gold IRA
- Goldco Gold IRA Alternatives
What Is A Gold IRA?
A gold IRA, also called a precious metals IRA is a specialized, self-directed individual retirement account designed to hold physical gold and silver, and other precious metals.
Starting a gold IRA is one of the best things you can do to protect and grow your retirement savings and hedge against the rapidly increasing inflation.
Just like traditional IRAs, a gold IRA allows pre-tax contributions, meaning that the investment earnings can accumulate tax-deferred.
A gold IRA differs from a traditional IRA in the sense that it strictly holds physical gold, silver, or other metals.
In contrast to a gold IRA, a regular IRA typically holds paper assets such as stocks, bonds, EFTs, funds, and so forth.
Benefits Of A Gold IRA
In uncertain times like these, it is more important than ever to turn to assets that help you hedge against inflation and other economic stresses to help strengthen your savings.
Opening up a gold IRA account has many benefits, and can, for example, help you:
- Hedge against a weaker dollar and increasing inflation
- Limit exposure to economic uncertainty
- Mitigate the effects of geopolitical instability
- Diminish negative fallout from the coronavirus economic crisis
- Diversify your portfolio
- Take real ownership of your financial future
2 Different Types Of Gold IRAs
There are two types of gold IRAs available:
1. Traditional-Based Gold IRA
With a traditional-based IRA (Self-Directed-IRA or SDIRA), you do not pay tax on the contributions you make to your gold IRA from your income until much later in retirement when you take distributions. And you can start taking distributions without penalty when you are age 59½.
To give you an example, if you make $60,000 one year and decide to contribute $5,000 into your gold IRA, you will only pay the tax that year on $55,000.
In addition, by the time you pay tax on that $5,000, the gold you have spent it on could well be worth a lot more. And this possible rise in asset value could mean that you will end up getting some of your tax bills effectively paid for free.
Also, a traditional IRA comes with a ‘Required Minimum Distribution (RMD)’, starting at the age of 72, meaning that you must withdraw a certain amount from your IRA each calendar year. Accordingly, this RMD also applies to a gold IRA.
2. Roth-Based Gold IRA
In contrast to a traditional IRA, with a Roth-based gold IRA, the contributions you make are NOT tax-deductible.
But on a positive note, when you make withdrawals from your gold IRA, you do not have to pay taxes on your investment gains. So, if the price of gold has increased significantly, this tax advantage may be a huge benefit.
Additionally, with a Roth-based gold IRA, the Required Minimum Distribution does not apply.
Instead, an upper-income limit applies to Roth IRAs. And as of 2022, your modified annual income must be less than $144,000.
Goldco Gold IRA: The Gold IRA Company You Should Work With
When choosing precious metals among other investments, you probably had a few qualities in mind. Dependability. Utility. Value. Maybe even name recognition.
And these are all factors that can, or even should, influence the choice of your gold IRA company.
With a Goldco gold IRA, you know you are getting the best when it comes to retirement investment. In a top-down sense, Goldco’s accolades are everything that a company in this or any sector could hope for.
And numerous high-profile endorsements and mentions and virtually spotless customer affairs after over 15 years in the industry.
For example, here is a sample of some recent, verified Goldco customer reviews:
You Need Top Marks From Your Gold IRA Company Because…
Those with an interest in precious metals in an IRA are told to do their research when it comes to who’s setting up the account.
The gold IRA company is the intermediary between the IRA owner and virtually everything else.
Through the company, the account owner reaches out to the custodian for hands-on management. It manages storage in a facility that specializes in bullion, whether in an IRA or otherwise.
And, not least important, help the customer acquire precious metals and place them in the IRA.
You will sometimes hear gold IRA companies say they do not offer investment advice or something to that tune.
Of course, that is not exactly right, with many of them immersing the visitor to their website in all things precious metals.
Check For Ongoing Support
A primary point of contention that can make a top gold IRA company like Goldco stand out, but leave competitors wanting, is recurring support.
More than just assisting with the initial rollover, which can seem like most of the process, the account provider is there for everything else.
Your ongoing satisfaction is what should matter to them, not just an initial ability to post an alluring offering.
In other words, you will likely find yourself with a lot of questions along the way, and it is best to have someone to answer them politely and in detail.
Gold IRA Rollover Guide: How To Fund Your IRA
Opening a Goldco gold IRA is great, but having it funded with an existing plan is even better.
Goldco assists with performing rollovers of various kinds, including:
- The full or partial rollover of a 401(k) or similar retirement account
- The full or partial rollover of a 401(k) or similar inactive retirement account
- Rollovers of less common plans and accounts, such as SIMPLE or SEP IRA
When working with the right people, rollovers are not as troubling as they are meant out to be. The rollover is handled by a specialist on behalf of the custodian company, as well as any administration that Goldco might employ.
Despite the amount of technical know-how involved, Goldco’s customers have repeatedly described the process as seamless.
The new gold IRA can be funded by several IRAs, or receive only part of the funds that would go into another IRA.
Flexibility is definitely a theme, and it extends to every other part of Goldco.
Moving The Money Into Precious Metals
With an average setup time of 10 days, hopefully, you have had a smooth ride towards loading up your new IRA.
And once it is ready, the next big choice to make is which precious metals that will go into it.
As is the case with any gold IRA company worth its salt, Goldco makes a habit of educating its clientele so that it can make informed choices.
Most top gold IRA companies have websites that function as information hubs, and Goldco is no different.
IRA Eligible Bullion
One of the first things to get informed on is whether the precious metals you have in mind for your IRA are eligible for placement.
The IRS issues strict guidelines on what is considered IRS-eligible precious metals and what is not, and sticking to them should not be an issue. Doubts about your purchase should be easily cleared by Goldco’s specialists.
The firm is, after all, a bullion dealer. One would expect them to know whether something on the precious metals palette is eligible for IRA placement.
Though Goldco sells bullion for use outside of IRAs, including but not limited to non-IRA-eligible bullion, we will mostly be focusing on their IRA offering.
As a general rule, any precious metal coin or bar of a high enough purity has the makings of an IRA-eligible asset. The purity requirements start with 0.995 in the case of gold and become more strict as we move on to other metals.
What Are Some Popular Bullion Choices For A Gold IRA?
There are some staples that have made it into IRAs time and again, partly due to their IRS compliance but also because they represent the very best in the form of gold and other bullion.
American Eagle Gold and Silver coins are an example of a series with a lot of width and variety that continues to refresh IRA inventories.
Image Source: goldco.com
Bars from reputable refineries of all four precious metals are other popular additions.
There is a bit of competition going on between both sovereign and private mints, if not stated. A general rule is that everyone wants their mint to run up to sovereign standards.
National mints are focusing on designing the new icon, be it the American Eagle or the Canadian Maple Leaf.
Private mints are focusing on further solidifying their reputation. After all, it has become the norm for bullion holders to prioritize items from a private mint due to its reputation.
Where Will The Gold Bullion Rest?
IRS regulation has mandated that the bullion in your IRA rests with a certified depository, an entity separate from the custodian who will manage your daily paperwork.
Goldco is among the more lenient companies in this regard, offering up to 3 storage facilities of their choosing. If none of them are what you find suitable, you can introduce a depository of your own to the mix, provided it is compliant with regulations.
- A standalone facility where the bullion is processed
- Both the facility and its vaults are managed using the best technology available to the depository
- They have security measures like high-defense vaults and electronic systems
- Adding to that, their assets are insured with a multi-fold policy
Managing The Precious Metals In Your Account
Even after the account is open and funded, getting started can feel a bit prohibitive.
Even the die-hard gold investor might find some disagreements over the coin denomination to invest in. Those with less intent can succumb to external factors more easily, and in finance, these are always within arm’s reach.
All precious metals fulfill the same purpose in your account relative to other assets. More than likely, they are a form of hedge and were bought with safety in mind. But relative to each other, precious metals can have very varied utility.
Reasons for wanting your Goldco gold IRA to have…
- The most defensive of the four and the safest pick. Gold has the least volatility to the downside, therefore often lacking explosive price action. It behaves remarkably in any crisis scenario, even when the setting is unprecedented.
- The industrial aspect is present but limited. Though gold has plenty of utility and uses in manufacturing in a range of industries, it is mostly viewed as an investment metal. Even those buying gold jewelry often think about its pricing in weight down the line.
- The widest range of investment options, in an IRA and outside it, and the most represented of the precious metals. Collectors and IRA investors alike will be strapped for choice when picking items from the inventory.
- On the precious metals scene, oftentimes gold’s opposite. It is always both a safety play and a defensive one, as the metal never leaves this role on a broader scale. But within the precious metals spectrum, silver behaves differently from gold despite following its price.
- Those who buy silver do not do it because it is cheaper than gold, as the saying goes, but because of its specific range of benefits. The metal has a huge manufacturing side, with green technology growing more popular. Any significant impacts in demand from the manufacturing sector would greatly benefit silver’s price.
- A similarly-varied range of investment options to gold, including many new and old coin varieties that can either be held in an IRA or outside it. Gold and silver both have a very pronounced sector of coin enthusiasts compared to the other two precious metals.
Platinum and Palladium
- Within the context of precious metals, these could be considered industrial metals. They are every bit as volatile as silver but for different reasons. Palladium’s valuations exceed gold’s these days. Meanwhile, platinum, historically gold’s equal in price, sits around roughly half it.
- Both platinum and palladium have a strained mine supply. Not a lot is being mined, and mining is highly localized. In palladium’s case, for example, nearly 40% of annual production comes from one country. This has contributed to the metal soaring to new all-time highs. Despite a dearth of supply, technologies making use of both platinum and palladium are on the rise.
- One might think that platinum and palladium will have few investment options, but that is not the case. Besides a range of bars, plenty of investors are interested in sovereign coins made from either platinum or palladium.
What Kinds Of Fees Will My Goldco Gold IRA Have?
Goldco has a flat and transparent structure that any retirement account provider could benefit from. Those opening a Goldco gold IRA can expect to pay under $230 the first year and under $200 annually the following years.
The lack of a fee involved in setting up an account stands out, although you can expect your IRA to have a necessary starting balance between $20,000-$25,000.
Goldco Precious Metal IRA Fees
Goldco Fees For Non-IRA Transactions
Goldco Investment Minimums
Do you wonder how much money you need to invest with Goldco? The chart below lists fees for IRA and non-IRA transactions:
Goldco Investment Minimums
Highest Buy-Back Guarantee
Goldco’s customers have repeatedly praised the company’s buyback feature, where they offer to buy back any metal they have sold to you at the highest rate on the market guaranteed.
Should you choose to go with this feature, you will get a noticeably better price than if you were selling to a regular dealer.
Building A Gold IRA That Lasts
Learn How To Protect Your Wealth With Physical Gold & Silver
Having a company like Goldco managing the opening and use of your IRA certainly helps. The kind of experience they bring to the table, along with their reputation, is plenty already.
Yet with IRAs, as is the case with any investment vehicle, you will need to make a few leaps of faith on your own.
There is no way to avoid having to decide on what your portfolio should look like. If you pay someone else to do the job, the investment decisions still have to be made.
They are just being made by a portfolio manager, not you.
For all the safety they provide, precious metals can be infamously volatile. They are, even or especially in the case of gold, a speculator’s favorite. This means lots of entry points and bargain valuations that are not going to last.
Partly because they track inflation, we can notice that precious metals have appreciated steadily over the years. But the gains were not uniform. The price changed for different reasons across the board.
The more vigilant investor undoubtedly made good of various price pullbacks as well as what happened in the case of palladium and many say should in silver.
These days, we lament how high gold is at $1,900 and how much catching up silver has to do. Not too long ago, $1,900 was treated as a one-and-done price target that came about in extreme circumstances.
How To Open A Goldco Gold IRA
To get started opening a Goldco gold IRA or precious metals IRA is easy. Especially when you partner with precious metals experts who know the ins and outs of this type of IRA and will hold your hand throughout the whole process.
To better illustrate how easy it is, here are the 4 simple steps to opening a Goldco gold IRA:
1. Select Your IRA Plan
For starters, to invest in precious metals, you have to start with a self-directed IRA. As an investor, you can begin a new IRA account, or roll over from an existing retirement account. It is key to speak with a tax advisor and precious metals expert to ensure that you follow regulations and that any retirement accounts you currently hold are eligible for a gold IRA transfer or rollover.
2. Select A Precious Metals Custodian
Second, gold IRA assets need to be stored with a custodian per IRS regulations. So, working with precious metals investing experts, like those at Goldco, will help you find a custodian experienced with gold IRA investing. That way, you’ll ensure that your self-directed IRA is set-up correctly.
3. Select Your Precious Metals
When choosing precious metals, it is important to remember that they need to meet certain IRS rules and regulations to avoid mistakes when investing for your retirement. Working with a precious metals specialist will ensure that you are choosing the right types of gold, other precious metals, or crypto.
4. Purchase Precious Metals
Once you have chosen your desired metals as an investment, you can purchase them and work with your custodian regarding storage. The custodian will keep your assets safe and secure at a bullion depository so that they will be available when you need them.
Making The Right Decision Over And Over Again
You have made the right decision to invest in precious metals and followed up by choosing the ideal company to follow our gold IRA rollover guide with.
But this should be only the start of a prosperous financial journey.
The goal, past getting returns and covering losses, is to have a resilient and dependable IRA that can be counted on decades from now.
Goldco Gold IRA Alternatives
If you want to look around a bit more before making a final decision on what gold IRA provider to choose, we have reviewed and rated the best gold IRA companies of 2022: