Gold IRA Rollover

Build Your First Gold IRA Rollover

The financial crisis of 2008 demonstrated just how important investment in gold can be. While almost all asset classes were decimated by the recession, gold flourished, giving investors enviable returns. The Fed’s Quantitative Easing program has also increased the risk of inflation and high interest rates. Gold remains the only asset with real, liquid, and universally accepted value.

What is an IRA?

Investing in gold can be done conveniently through a gold IRA. An Individual Retirement Account is a tax efficient instrument for holding a basket of different assets. These include stocks, bonds, mutual funds, and precious metals. IRAs come with legal restrictions on deposits, withdrawals, investment allocation, and alterations to the portfolio. IRAs are central to any retirement plan. They come in many forms including Traditional, Roth, and Simple IRAs. Each of these has different rules that dictate when tax is paid on withdrawals, maximum investment amounts, etc.

The 60 Day Rollover Rule

A rollover refers to moving or withdrawing money from any IRA. These withdrawals are subject to federal, and where applicable, state taxes. There are also gold squarespenalties for making withdrawals from an IRA. However, a 60 day exemption is allowed, in which no taxes or penalties are levied. This is on condition that the withdrawn amount is put back into the IRA, or another IRA plan.

A rollover is done when setting up a gold IRA from your 401(K) plan or other retirement plan. For example, you may wish to build your gold IRA with funds from your Traditional, Roth, or 401(K) plan. You are allowed to withdraw funds and deposit them with a new gold IRA custodian within 60 days, to avoid any taxes or penalties. This rollover can only be done once every 365 days.

How to Build Your Gold IRA Rollover

The procedure for setting up a gold IRA is really simple. The first step is to contact a custodian of your choice, and then fill out paperwork via fax or mail. The whole process will then be handled by the two custodians involved in the transfer.

It's better to transfer the funds directly from one trustee to the other, as this avoids falling foul of the 60 day rule, in case you receive the check and fail to deposit the funds within 60 days. Once the funds are with your gold IRA custodian, you can select the type and quantities of metals you want in your account. Funds from other assets, excluding physical gold, can also be used to fund your gold IRA.

Gold IRA Services

A gold IRA allows you to buy the physical metal and stocks in gold miners. The physical metal is preferable as a long term store of value. The custodian uses secure premises to store your metal and it will incur annual fees for storage, security, and insurance among others. However, this is usually a flat fee of a few hundred dollars. The larger your portfolio, the more cost effective your gold IRA will be, as the fee remains the same.

A gold IRA rollover is a sound investment, with secure inflation-protected returns. This is especially important for insulating your retirement nest egg from economic downturns, reckless fiscal policy, and adverse volatility in equity and bond markets.