Learning the ins and outs of an IRA gold rollover is not for the faint of heart. It takes a bit of financial savvy and understanding to make the right decisions so you can ensure your investment is a solid success. First off, knowing what a gold IRA is and how to use this precious metal to your benefit is essential in moving it around from one IRS-approved depository to another.
Let’s take a deeper dive into what a Gold IRA Rollover is and how to determine where to place your investment and why.
A Gold IRA Rollover Defined
If you were around in 1974, you’ll remember that IRA’s were initially introduced by Congress when they passed the Employee Retirement Income Security Act. However, it wasn’t until over two decades later–in 1997–where the Taxpayer Relief Act was passed and allowed investors to hold onto precious metals in their chosen retirement accounts. Whether it was gold, silver, platinum, or palladium, individuals could decide to place the metals in an account to be watched over for when the time comes to cash it in after retirement.
Transferring Your Current Retirement to Gold
Before you take the plunge, have a discussion with your financial advisor, one who is poised on matters of retirement accounts and switching over to precious metals. In doing so, you will save yourself plenty of headaches and stress down the road, as your custodian is the person who allows you to hold onto any metals in physical form. Here are some significant steps to take in order for a smooth transfer to occur:
- Complete a transfer request form with your new application
- Establish a Self-Directed IRA with a legal custodian
- Choose a direct transfer as it’s less complicated
Also know that several types of IRA’s qualify as a Gold Rollover, and whichever one suits your needs and those of your family has to be at the top of the investment heap. If you have an existing retirement account and you want to transfer it to precious metals, the key is to first establish a self-directed IRA with a qualified professional who can guide and recommend the best choice for you.
Once the direct transfer is initiated between custodians–your 401K provider and your new retirement account–the entire transaction process can take anywhere between 10 to 14 days to complete. If you want to speed up the process, you can have your new custodian send transfer request documents via fax to your existing custodian. That way, they can wire the funds in lieu of a check, a transaction that takes more time.
The Different Types of Retirement Accounts that Qualify for a Gold Rollover
There are seven kinds of retirement accounts that can roll over into a Gold IRA. Protecting your wealth is the number one reason to consider moving your money into a precious metal. Capitalizing on the avoidance of the volatility, currency debasement, inflation, and uncertainty in today’s market will lead you into converting a portion–or all–of your portfolio to a Gold IRA Rollover. Remember, it’s easier than you might think, especially when considering the following retirement accounts that you might have.
1. Traditional or Roth IRA – A special retirement account where you have the option to pay taxes on money going into your account, whereby all future withdrawals are subsequently tax-free.
2. Self-directed 401K – This account allows you to invest your money as you wish, with a custodian (typically an investment firm) chosen by you.
3. Employer-sponsored 401K – An arrangement where an employer makes an IRA contribution for their employees. It’s worth noting that the employer has complete flexibility over which employees will benefit from a contribution during any given year.
4. SEP-IRA – A Simplified Employee Pension is an individual retirement arrangement that’s adopted by business owners to offer retirement benefits to themselves and their employees.
5. 403[b] – Also known as a tax-sheltered annuity plan, this retirement plan is available for certain employees in the public education system. It also covers some non-profit organizations, cooperative hospital services, and those self-employed ministers in America.
6. 457[b] – A tax-advantaged retirement plan designed for civil servants, municipal employees, law enforcement officers, and public safety officials.
7. TSP – The Thrift Savings Plan is a tax-deferred saving and investment plan that offers Federal employees an opportunity to save part of their income for retirement, receive matching agency contributions, and an ability to reduce their overall taxes.
If you have a strong retirement portfolio, investing in precious metals makes perfect sense. Diversifying your investments into a Gold IRA Rollover is one way to protect your hard-earned money from the volatility and uncertainty that traditional markets carry. When consulting with your investment firm and making the decision to transfer a portion of your retirement savings into gold, you might be surprised at how adding a little sparkle to your entire portfolio can boost your entire funding strategy into a successful bottom line.