To avoid the prospect of not meeting the rollover limit, many people choose to have their Gold IRA firm coordinate the rollover by transferring the rollover directly from institution to institution. Since the money never technically flows through your hands, you don’t have to worry about taxes or penalties being charged. You don’t want to fund a gold IRA with cash because you’ve already paid taxes on that money, and the point of using an IRA as an investment tool is to take advantage of the tax benefit that comes with using pre-tax dollars. With a self-directed IRA, you can deposit up to 10 ounces of gold into your account
.
It’s a great way to diversify your portfolio and protect your assets over the long term. Many people who want to open a Gold IRA do so by transferring their existing retirement savings to the new account. Plus, Gold IRA companies can help you set up your IRA and make sure everything is up to the right specifications. Precious metals IRAs are usually self-directed IRAs, a type of IRA in which the custodian bank allows you to manage more diverse investments in the
account.
Or, if you have a traditional retirement savings account and want to increase your exposure to gold, read here how you can buy a gold ETF, an exchange-traded fund that tracks the performance of gold. When choosing the depository option that’s best for your IRA needs, look for one that meets those requirements and offers superior security and best-in-class services. For more information on what to look for when choosing a Gold IRA company, check out Money’s guide to the best Gold IRA companies. The IRS also allows you to transfer an existing retirement account to a Gold IRA so you can save money and avoid tax penalties associated with setting up a new
Gold IRA.
A gold IRA or precious metal IRA is an individual retirement account in which physical gold or other approved precious metals are stored for the benefit of the IRA account holder. One reason is that IRAs are not allowed to hold collectibles and precious metals such as gold and silver are considered collectibles. If you want to have your gold valued, it’s usually better to wait until you’ve liquidated your IRA assets and taken possession of your metals. IRS rules allow funding a Gold IRA with funds from another IRA, 401 (k), 403 (b), 457 (b), or Thrift
Savings Plan.
IRA rules for precious metals require you to work with a custodian, a financial institution that is responsible for protecting the assets in your Gold IRA. People who believe that physically owning gold or other precious metals is safer can gain that assurance with a gold or silver IRA. Many Gold IRA companies have preferred custodian banks that they either recommend or require customers to use them, or you can search for a custodian on the RITA website. Gold IRA companies can help you with this process, from choosing a custodian bank to arranging the storage of your
precious metals.
