By PROMO CONTENTUpdated: MAY 24, 2023 12:25(photo credit: PR)
Those who want to protect their retirement savings should strongly consider converting their Individual Retirement Account (IRA) into a gold IRA. However, to do this rollover process, you need a trustworthy gold IRA company, such as Goldco. Goldco has to be our number one option because the company has a lower initial investment cost compared to other companies and offers a wide range of investment options.
Did you know that people have been capitalizing on the increasing value of gold and other precious metals for centuries? One way in which you can do this, secure your retirement savings, and diversify your investment portfolio, is by opening a gold IRA. These are unique types of retirement accounts that are specifically made for unconventional investments.
Do you want to convert your IRA to a gold IRA?
I just did this, and here is how the process worked.
What's the Difference Between a Transfer and a Rollover?
First things first, it's important to distinguish between a rollover and a transfer. These are the two ways you can use your existing retirement accounts to finance your gold IRA account.
When opting for a rollover, you are withdrawing funds from an existing retirement account and transferring them into your new gold IRA account. During this process, your current IRA custodian will hand over the funds. You have 60 days from the date of receipt to deposit the funds into your gold IRA. However, gold IRA rollovers are considered the riskier option, as failure to meet the deadline with result in a 10% penalty for people under the age of 59.5.
Transfers are a slightly simpler process as they involve the custodian directly transferring the funds into your gold IRA. Therefore, you don't have to worry about any cash withdrawals or incurring a penalty after 60 days.
Regardless of whether you choose the rollover or transfer process, you can count on your chosen gold IRA company to guide you through the process. If you don't know any reliable gold IRA companies, there's no need to panic. We're going to discuss three of the top-rated options below.
How to Open a Gold IRA Account
Before opening your gold IRA account or self-directed IRA, you need to find a reputable provider that specializes in precious metals IRAs. We strongly advise Goldco for a number of reasons. Goldco has been in the industry for many years and has knowledgeable professionals with a great deal of professionals. Furthermore, the company has achieved an A+ rating from the Better Business Bureau (BBB) and an AAA from the Business Consumer Alliance (BCA).
Once you've dealt with the formalities and have an active account, it's time to deposit funds into your account. Thereafter, you'll need to choose what precious metals you want to invest in so that your gold IRA custodian can buy the physical gold, silver, etc., on your behalf. Keep in mind that once your purchases are complete, your gold IRA investments will be shipped to a safe storage facility.
How to Transfer an IRA to a Gold IRA
Now, let's discuss what you came here for: How to transfer your IRA to a gold IRA. Fortunately, this isn't a complicated process, so you shouldn't find it stressful or overwhelming:
Start by contacting your current IRA account manager and informing them that you want to initiate the transfer or rollover process.
Next, you'll have to take care of the necessary paperwork. You will have to tell them how much money you intend to transfer as well as provide any other required information.
The manager will make the necessary arrangements for the transfer to take place. Once you receive the funds, you can purchase gold and any other precious metals the company offers, such as silver, platinum, and palladium.
Choose the type of gold you want to invest in. This could be in the form of gold coins or bullion, or other physical precious metals.
The funds in your account will be used to make the investment once you give your custodian permission to follow through with the purchase.
Once you've successfully purchased your precious metal, it will be delivered to a safe storage facility to ensure your gold IRA rollover investments are properly protected. Some companies give you the option to store your precious metals at home; however, we strongly advise against this. Furthermore, under certain circumstances, home storage can result in penalties from the IRS.
Lastly, all you have to do is keep track of your investments and track their performance. In many cases, your gold IRA company will provide tools that make this process simpler.
What Costs Are Associated with Transferring Your IRA to a Gold IRA?
Fortunately, you will not incur any IRS or other government charges by initiating a gold IRA transfer or rollover. However, most of the time, your account manager will charge a fee subject to the company's policies. Therefore, when you want to transfer funds from an existing retirement account to a gold IRA account, you'll need to consult with your custodian for specific details on additional or possible costs.
What Are the Best Precious Metals IRA Companies?
Now, you might want some help choosing a trustworthy IRA gold company. The following three companies are some of the best in the industry and have excellent ratings, reviews, and reputations. In fact, the main difference between the three is with respect to the required minimum deposits.
Most importantly, make sure to choose the best option for your specific needs and circumstances:
When it comes to the precious metals industry, everyone knows the name Goldco. Goldco has an excellent reputation, which is why it's considered to be one of the USA's top gold IRA investment companies.
The firm's experienced professionals are always willing to give you advice and make the best decision for you, whether that be buying physical precious metals or making use of its gold IRA services.
Goldco has won numerous awards, such as the 2021 Stevie Company of the Year Award, and is always focused on offering stellar customer service, which is why they're at the top of our list.
Pros
Waives first-year fees
$25,000 minimum initial investment cost - much lower than competitors
American Hartford Gold is known for offering unique and high-quality services to customers. It aims to make the investment process as smooth as possible by providing various goods, insurance options, and storage facilities.
Another attractive feature is that the company has a minimum investment amount of $10,000, which is lower than any other company on this list. They offer reasonable storage fees and prompt delivery, which explains the high customer satisfaction rates.
Even though Augusta Precious Metals has a high initial investment requirement of $50,000, this company is known for its superior service. They are one of the leaders in the industry, and rightfully so.
Augusta Precious Metals is committed to helping clients strengthen their retirement portfolios and educating them. As a client, you'll be invited to private online seminars that will help you develop your financial knowledge.
Representatives will also be there to assist and offer guidance along the way. With countless positive reviews from the BBB and BCA, you can't go wrong with this option.
Pros
No complaints reported to the BBB and BCA
Exceptional customer service
Commitment to education
Transparency
Makes use of no-pressure sales techniques
Cons
Limited precious metals available
$50,000 initial investment requirement
Credit: PR
Tax Implications Associated with a Gold IRA Transfer
Did you know that a precious metals IRA can protect you against potential penalties associated with rollovers? As was mentioned above, failure to deposit funds within 60 days of withdrawal will result in a 10% penalty. Furthermore, there is a one rollover per year limitation.
By choosing to transfer your gold IRA, there are no withdrawals, fees, or penalties involved. Therefore, there are no associated tax consequences either.
Why You Should Convert Your IRA Into a Gold IRA
You could benefit from a gold IRA rollover or transfer in numerous ways, such as:
It acts as a hedge against inflations: Gold investments act as a natural hedge when the value of the currency (i.e. dollar) decreases.
You'll diversify your portfolio: By investing in multiple types of assets, you're spreading and lowering your risk. It's never a good idea to only invest in one type of asset, as there is high risk associated with this type of concentration.
There's potential for growth: Historically, gold has appreciated in value, meaning your portfolio's value will also increase if the trend continues.
Economic safety: Holding physical gold is a great way to mitigate any losses experienced during economic uncertainty or turmoil.
However, if you're still not convinced that this is the right option for you, you should speak to your financial planner or accountant. They'll be able to give you sound advice according to your financial position and goals.
Gold IRA Rollover Guide: How to Roll Over Your 401 k to a Gold IRA
The following five steps will help you ensure you roll over your 401k into a gold IRA as smoothly as possible:
Step One: Find a Gold IRA Provider
Firstly, you will have to find a gold IRA provider that you're comfortable working with. It always helps to find a company with industry experience, as this will help put your mind at ease.
Don't forget to read any contracts thoroughly before signing or committing to anything.
Now that you've found a gold IRA provider, you need to find a custodian. This person will be responsible for overseeing your account. Additionally, they will take care of all transactions on your behalf to ensure compliance with any regulations set out by the IRS.
It's important to find a custodian that specializes in precious metals. This way, they'll be able to help you make the best investment choices as they'll have extensive knowledge of the types of assets you're interested in.
Step Three: Open a Gold IRA Account
Next, it's time to open an account. Your gold IRA custodian and provider will work together to build your precious metals investment portfolio according to your goals. Once you have made purchases, the physical precious metals will be sent to a storage facility to ensure they are stored safely until you are ready to sell them.
Step Four: Execute the Rollover
A gold IRA rollover can be executed directly or indirectly. Direct rollovers take place when funds are moved directly from the old location to the new location by an authorized and professional individual or company.
An indirect gold IRA rollover occurs when the owner receives all the assets in the IRA. Afterward, the owner is responsible for transferring the assets into the new gold IRA.
We recommend choosing the option that's most convenient for you and that involves as little paperwork as possible. This way, you won't have to worry about delays, complications, or IRS-imposed penalties.
Step Five: Buy Gold
Lastly, it's time to use your new gold IRA to buy your desired precious metal. This could be gold, silver, platinum, or palladium. Of course, the available precious metals will differ depending on the company you opt for. However, it's important to note that the metals must meet the purity requirements.
A gold IRA rollover or transfer is a savvy move easily done by any reliable gold IRA company.
How to Set up a Gold IRA Account
Before setting up your account, you need to decide on a gold IRA company. This is a very important decision to make as you have to consider factors such as fees, reputation, experience, and customer service. By choosing one of the above-mentioned companies, you'll be able to start the rollover process quickly and conveniently. Therefore, you'll be able to start trading precious metals in no time!
The Bottom Line
As you can see, transferring your IRA into a gold IRA is a unique way to protect your retirement savings. A gold IRA is very different compared to traditional investment options such as ETFs, mutual funds, stocks, and bonds. In fact, one of the most noticeable differences is how much more reliable gold IRAs are.
Now that you know how to transfer your traditional IRA, Roth IRA, or SEP into a gold IRA, you can use a gold IRA company and custodian mentioned here that can help you with the transition.
