If you’re considering rolling over your existing 401k or IRA to a precious metals IRA, then you’re making a wise choice. With the current state of the economy and the declining value of the U.S. dollar, many people are relying on precious metals such as gold to preserve their wealth and retirement. With a traditional retirement account, you’re only permitted to hold paper assets such as currency, stocks, and mutual funds. But with a gold IRA rollover, you are allowed to convert a partial or full amount of your existing retirement into a precious metals IRA which can hold gold, silver, palladium, and even real estate.
In this page, I’m going to answer some of the most common questions we get regarding gold IRA rollovers and walk you through the steps you need to take in order to get started.
What Is A Gold IRA Rollover?
A Gold IRA Rollover is a process in which you transfer money from your traditional retirement account such as 401k, roth IRA, or traditional IRA, into a special IRA that allows you to hold precious metals such as Gold, Silver, and Platinum. This procedure is approved by the IRS and can be free of any tax if done correctly. We recommend using a reputable company such as Regal Assets to help you complete this process and avoid any penalties.
How Do You Setup A Gold IRA?
Step 1 – Choose A Gold IRA Company
The first step in rolling over your existing retirement into a gold IRA is to find a reputable company to help you through the entire process. A gold IRA company such as Regal Assets can help you select a custodian for your new retirement account, and help you fill out all the paperwork you need to convert your existing retirement to a precious metals IRA.
Step 2 – Transfer Funds Into New Self Directed IRA
Once you’ve opened up a self-directed IRA account, you are now allowed to hold precious metals such as gold and silver. But first, you’ll need to transfer funds from your existing retirement account into the new gold IRA account. With a “transfer”, the custodian of your existing retirement account will write a check directly to the custodian of your new retirement account, which will then be deposited on your behalf. With a “rollover”, the custodian of your old retirement account will write a check directly to you, and then you’ll have to deposit those funds into your new retirement plan within 60 days.
Step 3 – Select Your Metals
Now that you’ve opened a self-directed IRA and have funded your account, it’s now time to purchase metals to hold inside your account. You have the option of choosing bullion or coins, but the IRS requires a purity level of .995. You have the choice of diversifying your account with as many different types of metal you want including gold, silver, palladium, or platinum. Beware: You are not allowed to hold “collectible” coins in your gold IRA. Make sure you find a reputable precious metals dealer that understands all the IRS’ requirements for self-directed IRA accounts.
Step 4 – Storage
Now that you’ve purchased the metals that you want to hold inside of your Gold IRA, you need to select a secured storage facility to hold your precious metals. Many gold dealers have secured storage facilities that will hold your precious metals for you (for a small fee), or you can choose your own storage company. The choice is yours.
Can I Convert My Existing 401k to Gold?
Yes, you still can. BUT, there are a couple different options for completing a 401k rollover, and it mainly depends on whether or not you still work for the employer that runs your 401k.
If you DON’T work for the same employer – then you just follow the same steps outlined above. Choose a custodian, setup your gold IRA account, transfer funds, and select a precious metals dealer to buy from.
If you DO work for the same employer – in order to transfer money from your 401k, you’ll need to ask your employer if your plan allows for an in-service distribution.
- If an in-service distribution is allowed – then go through the same steps outlined above.
- If an in-service distribution IS NOT allowed – then inquire about adding a precious metal option to your existing 401k plan.
This whole process is a lot to digest at once, but keep in mind that once you select a custodian, they will help guide you through the entire process and answer any questions you may have.
Regulations and Rules To Keep In Mind
Although a good custodian would provide you complete guidance, it is imperative that you are personally aware of these rules:
- The transfer of funds from your existing IRA into the new gold IRA must happen within 60 days in order to avoid any taxes.
- You’re not allowed to hold the physical gold yourself. Your gold or precious metals must be stored in a depository, which is approved by the IRS.
- The precious metals you purchase must meet the minimum required purity level of 99.5%. You’re not allowed to hold collectible coins in your IRA account.
Best Company To Use For A Gold IRA Rollover
The company I recommend most to help you setup the Gold IRA Rollover is Regal Assets. The reason is because they are one of the only gold investment companies with an A+ rating from the Better Business Bureau, and they handle the entire process for you. They’ll help you fill out the necessary paperwork and even setup the Gold IRA account for you within 24 hours of receiving the signed paperwork. Regal Assets can also act as your precious metals dealer, as they offer 99.95% pure gold, silver, platinum, and and palladium. They have both bullion and coins to choose from.
Their customer service team is top notch, and they’ll keep you informed during every step of the process and answer any questions that you may have. Rolling over your IRA to a gold IRA can seem overwhelming at first, but Regal Assets makes this process as simple and easy as possible.