How to Convert IRA to Gold? Gold IRA Transfer Guide

(Ad) Investing can be a tricky business, considering the kind of risk you must balance as you decide which way to go. This principle even applies to your retirement savings if you have put it in the form of an IRA.

These investment-type accounts use traditional assets in the background, which means that how lucrative they are depends on the performance of these underlying elements. What you'll soon realize, as you study the situation, is that any such IRA is linked to the state of a fiat currency.

What if you wanted to avoid that, though? Well, you probably know that investing in physical precious metals is one way to go about that. So, now comes the question of converting your existing IRA to gold. Is it doable? The short answer is yes, but you'll want to stick around to get a look at all the details that go into it.

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Gold as an investment vehicle

The idea of physical gold investments isn't a new one, as it has been a lucrative option for centuries. This comes from its status as a safe haven kind of investment. During times of recession, for example, many investors turn to gold to protect their wealth.

Being a hedge against inflation is incredibly helpful, which contributes to gold's status as a staple in any investment portfolio. Sure, you'll still want to keep things diversified, but there is a lot of merit to having gold somewhere in the mix.

What are your retirement savings options?

Apart from the investment benefits, the use of an individual retirement account allows you to make use of different kinds of tax advantages for your retirement savings. The Internal Revenue Service (IRS) will determine your annual contribution limits, and you're free to go up to the amount of that limit. You have several IRA options, which are:

Traditional IRA - You'll have tax-deductible contributions here, and you won't pay any taxes on the earnings until you retire, when taxes will be applied as income on everything you withdraw.

Roth IRA - You won't be dealing with tax-deductible contributions here, since the funds used are after tax. You will, however, enjoy withdrawals and earnings with no taxation.

SEP IRA - Self-employed people or small business owners can contribute to a traditional IRA named for an employee. It's not necessarily limited to these business types, but these are the typical employers that use it.

SIMPLE IRA - If there's no other retirement scheme present, small businesses have the SIMPLE IRA option. SIMPLE is an acronym that stands for Savings Incentive Match Plan for Employees. It's a lot like a 401(k), but the contribution ceilings are low and the administrative overhead is a little easier to deal with.

What is a gold IRA rollover?

Essentially, if you already have an IRA, you could convert a portion or all of it to a precious metals investment that retains the properties of the original account. Of course, the difference would be in the form of the underlying asset that would become gold.

You wouldn't be the first investor looking to diversify who considers the possibility of setting up a gold IRA. Typically, your gold IRA company, assuming it's a reputable one, will assist you through the rollover process.

There's a section below that provides you with the details you'll need to ensure that you make a well-informed choice of company. The funds are allowed 60 days from the date of withdrawal from the original IRA before deposit to the new gold IRA account must be completed.

What makes a precious metals IRA desirable?

As indicated above, investors who are looking to protect their holdings see this self-directed IRA option as a good idea. Considering the benefits you're offered, it's almost a no-brainer. Consider the following:

The tax benefits that came with the original IRA can still be enjoyed, considering that there are corresponding gold and silver IRA options for different types of accounts.

Provided that your gold IRA company provides the expected assistance, you won't need to worry about suffering tax penalties for moving your funds in this way.

Provided that you use your gold IRA as a means of diversification, you allow yourself a sense of protection by lowering your risk of a total portfolio collapse.

History will tell you that precious metals are very good at retaining their value. Combining that with the benefits of an IRA is a win.

A self-directed IRA account is always a good idea for those who want to exercise control over their investments. Of course, you want to be careful what you do if you don't have a certain level of expertise.

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Is there a difference between a gold IRA account rollover and a transfer?

When you want to move your funds from one account type to the next, you could do so via a rollover or a transfer. These are also known as indirect and direct rollovers, respectively.

The rollover process is more of a two-step procedure in which the funds are given to you to move to your new IRA.

Going the transfer route removes you as an intermediary step. Instead, the funds are moved directly from one party to the next. It's fully managed by the gold IRA custodian.

The rollover process has a slew of regulations that can be very costly if violated. This is yet another reason why the company you choose is crucial. Not only will you get advice on how best to proceed, but there's also the matter of ensuring that you don't have to deal with any kind of unwanted penalties.

How to roll over to gold IRAs

So, you have your IRA and you've decided that you want to do a rollover to a precious metals variation. Where do you start and what does the actual process look like? This section will cover what you can expect.

Choose the right gold IRA company

Whether it's gold, silver, or other precious metals, a part of how smooth or reliable the process will be depends on the gold IRA firm that you select. Typically, an investor who is looking to make the switch doesn't know very much about the nuances of the process.

This is arguably the biggest reason why the company matters so much. You're essentially relying on the business to not only provide the service, but also guide you through the relevant processes in a way that ensures that you're educated enough to understand what's going on.

You'll need to choose the gold bullion or silver coins, for example, as well as storage options, and the right custodian.

Paperwork is also a big thing here, and getting through it is not as simple as you might imagine, especially when you have a rollover to deal with in the mix. As you'll likely imagine, the company will also provide you with financial advice, which is another reason it's so critical that you be able to trust it.

Bear in mind that this is a relationship that will last until you're ready to start withdrawing your holdings. Later, you'll get some useful insights into some of the top firms on the market.

Choosing the custodian for your gold

Once you've chosen your gold IRA business to get the ball rolling, there's also the matter of choosing a custodian. Though you're going to be buying physical gold later in the process, you're not legally allowed to keep it at home. This stipulation comes from the IRS.

The purpose of your custodian is to provide a management service that will help to keep you compliant with IRS rules. There will be the transaction coordination element of the service, as well as ensuring that all relevant documentation is provided to the governing body upon request.

Not all IRA custodians support self-directed IRAs, so you must ensure that self-direction is a service offered by the one you choose. Of course, with the right gold IRA company on your side, that isn't a concern. You'll usually get assistance with the selection. In some cases, these companies have partnerships with custodians, which also contribute to an overall easier experience for you.

Creating the new gold IRA account

The actual account setup occurs here. The custodian and the gold IRA firm work as a unit, helping you to acquire the precious metals you're interested in. Of course, you'll also receive assistance with the sale of these assets later if you so desire.

This partnership aims to broker the transaction on your behalf, while also ensuring that the physical precious metals are moved to a secure depository as expected. Of course, this is not a purely autonomous process. You must be consulted to ensure that you approve of the choices being made on your behalf.

The IRS isn't the only one receiving the documentation concerning your account. You will also receive these documents, since you need to stay on top of whatever happens.

Note that the company you choose will also guide the amount you're allowed to invest in the gold IRA. While some companies will not impose any restrictions, others have established ceilings, so you'll want to find out where your preferred one stands.

Executing the gold IRA rollover

This is where the actual rollover happens. The funds from the existing account will be moved to the new one to back your investment. As indicated before, there is a direct method and an indirect method for doing this. You'll likely receive advice that will help you understand why one method is being used over the other.

In the true sense of a rollover, the money is transferred to you directly before it's given to the gold IRA firm. Different stipulations and documentation requirements come with this, but thankfully, you'll have assistance.

Remember, as well, that you have 60 days to complete the movement of the funds if you want to avoid having to deal with any penalties during the process.

Completing the physical gold purchase

With the rollover complete, the next stage of the process is to choose and buy the physical precious metals that will serve as the backing assets for your IRA. Apart from gold, some gold IRA companies will also offer other options in the form of silver, platinum, or palladium. The process doesn't differ, regardless of the precious metals you're interested in.

One of the benefits of a good precious metals IRA company is the network of connections that it makes during its operation, such as partnerships with custodians, as mentioned before. You can rely on these to ensure that you can get desirable precious metals while remaining compliant with IRS regulations.

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Don't forget the purity requirements for these gold IRA investments.

The IRS doesn't just allow you to buy whatever piece of gold or silver you want when you're dealing with an IRA. Purity standards are very important. Gold, for example, must be 99.5 percent pure to be eligible. Note, however, that the American Gold Eagle is an exception to this rule, being approved while only having a 91.67 purity rating.

Purity refers to the extent to which the final product is made up of the precious metal. To make precious metals easier to work with and more appealing, other elements such as nickel or copper may be used to create the final product you see.

Silver will need to have a 99.9 percent purity rating to be accepted by the IRS.

Best gold IRA companies

This is one of the big sections that you have likely been waiting for. As you've gathered by now, there's a lot of importance that goes into making a well-informed selection. So, it helps to become well-informed about some of the best IRA companies on the market, since learning what makes them appealing will help guide your decision.

Goldco: overall best gold IRA company

It's very difficult to miss Goldco on your journey, considering it's one of the most popular providers to offer the option.

One of the most appealing elements of dealing with Goldco's team is the ease of just about any process you can think of where a gold IRA account is concerned. The company prioritizes having a customer service team with a high level of user-friendliness and knowledge.

There's a convenient web chat option that allows you to have your queries and concerns handled by a representative. Additionally, there are a ton of resources available to help you understand more about the gold IRA landscape.

Even before you officially become a customer, you'll almost immediately appreciate the warm way in which you're treated. Of course, once your sign-up is complete, you'll get all the relevant assistance with your rollover.

The good thing about Goldco is that its reputation won't be hard for you to verify. With excellent ratings across the Better Business Bureau (BBB), the Business Consumer Alliance (BCA), and independent review sites, you'll be able to check out the Goldco experience even before you begin to do business with the company.

Finally, the company has a buyback program that professes to offer the best rates on the market. So, if you ever want to sell your holdings and go for different investment options, you can consider Goldco.

Your IRA options are as follows:

Gold IRA account: 3.5% interest rate

Silver IRA account: 2.75% interest rate

Platinum IRA account: 4% interest rate

Palladium IRA account: 3.25% interest rate

Gold and silver IRA account: 3% interest rate

Gold and platinum IRA account: 3.75% interest rate

Silver and platinum IRA account: 3.5% interest rate

Gold, silver, and platinum IRA account: 4.25% interest rate

Gold and palladium IRA account: 3.25% interest rate

Silver and palladium IRA account: 3% interest rate

>>Visit the official Goldco website.<<

 

Augusta Precious Metals: best for education

Augusta Precious Metals has been in the business since 2012 and has created many satisfied customers during that time. The company's appeal is based on pricing, which it has designed to be both affordable and easily understandable.

Like Goldco, Augusta has a streamlined and straightforward process for those looking to set up an account. The customer service side of things is also great, ensuring that customers fully understand what they're getting into, even though the offerings are typically well received.

Augusta Precious Metals, like Goldco, boasts an AAA rating from the BCA and an A+ rating from the BBB. You can also garner feedback from users of the service on independent review sites.

Educational materials are also a big part of the offering. The support team can help you through a lot, but the company also offers a ton of resources for you to take advantage of. The best part is that a lot of what you can learn is as supplemental as it is necessary.

So, while you'll be able to learn more about IRAs, there are also resources to help you to understand the state of the economy, for example, which will lead to better investment decisions. Here are the account types to look forward to:

Gold IRA: Up to 5% interest rate

Silver IRA: Up to 4.5% interest rate

Platinum IRA: Up to 4% interest rate

Palladium IRA: Up to 3.5% interest rate

Self-directed IRA: Up to 4.5% interest rate

Roth IRA: Up to 4.5% interest rate

Traditional IRA: Up to 4.5% interest rate

SEP IRA: Up to 4.5% interest rate

Simple IRA: Up to 4.5% interest rate

Inherited IRA: Up to 4.5% interest rate

>>Visit the official Augusta website.<<

Noble Gold: best for risk-averse investors

For over two decades, Noble Gold has been providing an excellent set of services to its clients with its variety of precious metals services, including its IRAs.

Like the previous options put forward, one of the appeals of the company is the stellar customer service you can expect when you deal with it.

The company takes the approach of trying to guide its clients while having them deal with as little risk as possible. Of course, you still have to understand and accept the level of risk involved.

Noble Gold boasts an AA BCA rating and an A+ BBB rating, alongside a collection of glowing reviews from customers. It's a reputable, accredited company that has a high focus on security transparency and customer satisfaction.

Education is also important to the company. Even without reaching out to anyone, you'll notice that the site is giving you useful information. This spans news, precious metals investments, concepts, and more.

Here are the kinds of accounts you should expect:

Gold IRA - 5% interest rate

Silver IRA - 4.5% interest rate

Platinum IRA - 6% interest rate

Palladium IRA - 6.5% interest rate

Gold and silver combo IRA - 5% interest rate

Gold and platinum combo IRA - 5.5% interest rate

Gold and palladium combo IRA - 6% interest rate

Silver and platinum combo IRA - 5% interest rate

Silver and palladium combo IRA - 5.5% interest rate

Platinum and palladium combo IRA - 6% interest rate

>>Visit the official Noble Gold website.<<

American Hartford Gold: best for round-the-clock support

The final option on the list is American Hartford Gold, which is well known for having established a strong reputation in a short time, considering it's one of the newer entrants to the industry.

Customer service is good here, and its 24/7 availability means you'll always have someone to assist you. A lot of the information you're provided with will come in the form of live data on various precious metals.

Like Noble Gold, American Hartford Gold has secured an AA BCA rating and an A+ BBB rating, making it one of the most highly regarded companies on the market.

If you no longer want to go in the direction of a gold IRA, there's a buyback program offered that allows you to explore different interests.

The accounts you can expect are:

Gold IRA - 3.7% interest rate

Silver IRA - 3.5% interest rate

Platinum IRA - 3.8% interest rate

Palladium IRA - 4.1% interest rate

Gold and silver IRA - 3.6% interest rate

Gold and platinum IRA - 3.9% interest rate

Silver and platinum IRA - 3.7% interest rate

Gold, silver, and platinum IRA - 3.8% interest rate

Gold and palladium IRA - 4.2% interest rate

Silver and palladium IRA - 4.0% interest rate

>>Visit the official American Hartford Site.<<

The bottom line

If you want to enjoy the benefits of a standard IRA with the upsides of investing in gold, then a gold IRA rollover may be what you need. Above, you began to learn about the different elements, including selecting a proper custodian and precious metals.

Arguably the most important part is choosing the right gold IRA company. The four options provided above stand among the best on the market and should yield an excellent experience.

Get the GOLD IRA KIT that Americans are using to protect their retirement savings: Get my free kit today!

Frequently Asked Questions

What should you think about when choosing a gold IRA company?

Some of the important considerations are BBB and BCA ratings, interest rates, customer service, and commitment to customer education.

Are early withdrawals allowed for gold IRAs?

While you can withdraw early, if you do, you will be subject to the same penalties that you would under standard IRA rules.

Is keeping the physical precious metals in an IRA at home legal?

No, this is forbidden by the IRS. Doing so means dealing with the penalties of it being treated as a withdrawal plus other potential consequences.

Are IRA gold investments the best type?

There are a lot of different gold investments out there. IRAs are probably the best type for those looking at securing retirement savings.

*This article is provided by an advertiser and not necessarily written by a financial advisor. Investors should do their own research on products and services and contact a  financial advisor before opening accounts or moving money. Individual results will vary. Foreign companies and investment opportunities may not provide the same safeguards as U.S. companies. Before engaging with a company, research the laws and the regulations around that service, and make certain the company is in compliance. For comprehensive guidance on U.S. investments and financial regulations, visit the Securities and Exchange Commission (SEC)’s Investor.gov.