Gold IRA Rollover Guide: Converting IRA to Gold

A gold IRA rollover is a massive decision to make. Moving any of your funds from one account to another is something that we think about often. Obviously, we all want the best outcome for our retirement fund.

So, what exactly is a gold IRA rollover and how does the process work?

A gold IRA rollover is when you take funds from a savings account and move it into a gold IRA that holds metals such as gold. To transfer money from your retirement fund, you need to make arrangements with your current broker and an IRS-approved gold IRA broker-dealer.

For the rest of this article, I want to expand upon the title. Also, you need to know a few more essential details if you are considering moving your money. Remember, this is not a minor decision, but luckily, we should be able to help you with your choice.

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What Can Be Rolled Over to a Gold IRA?

Not all retirement accounts can be rolled over into a gold IRA. However, I find that the most common accounts can be rolled. Here is a list of retirement accounts that you can roll over into a gold IRA.

So, as the famous saying goes, we know that history doesn’t often repeat itself, but it does tend to rhyme. 

I want to steer clear of explaining what each of those retirement accounts is because that’s not what this article is about. You should have some idea of what type of IRA you have, and it is something that you can check on.

Knowing what account you have is going to play a massive role in the next section.

How to Rollover to a Gold IRA

Before you start moving your savings into a gold IRA, you need to know whether you will do it directly or indirectly because these are two different processes and have different rules.

It is important to note that the decision to go directly or indirectly is not entirely up to you in some cases. That said, let’s go into more detail.

Direct Gold IRA Rollover

A direct gold IRA rollover is a hands-off process. It is often used by individuals who work within the private sector or have savings accounts set up privately rather than publicly.

This distinction plays a massive role in whether or not you can do a direct gold IRA rollover. For now, here are the steps I would direct gold IRA rollover:

  • Roth Find a gold IRA broker that is IRS-approved.
  • An account will be set up for you.
  • Speak to the broker or institution that manages your current savings account.
  • Complete a transfer request form. Your new IRA details should be on the form.
  • The process takes a few days once the request is submitted.

When the account is initially set up for you, there won’t be any precious metals in it. You would first need to wait for your transfer request to be approved and completed.

Then you can choose how that money is split up between precious metals, or you can leave that up to your broker-dealer.

Indirect Gold IRA Rollover

An indirect gold IRA rollover is a bit more technical. Instead of your transfer being done automatically, it is done manually. You still follow the same steps as if it were a direct rollover, but instead of your money being transferred into your new gold IRA, it will be sent to you via cheque.

Depending on who manages your IRA, the money could be sent to you over a few months or all at once. You then have 60 days to put the money into a gold IRA.

If you fail to do the transfer within the time limit, the IRS could think that you are trying to dodge taxes, and it could mean some hefty penalties.

Finally, an indirect rollover is generally used by people who work in the public sector, such as firemen, police officers, etc.

Gold IRA Rollover: Tax Rules

We have written an extensive article where we cover the tax rules regarding gold IRAs. If you are seriously considering rolling over your retirement account, I highly recommend reading that article immediately after this one or bookmarking this page to come back to it later.

Gold IRAs do have a few tax benefits. However, those benefits are not as extensive as traditional IRAs. The reason is that precious metals have different tax rules.

You will never be taxed more than 29% on your gains, but the tax system works similarly to capital gains tax rules.

Gold IRA Benefits

The most immediate benefit of a gold IRA is one that is based on historical data. While the world is being introduced to cryptocurrency and digital forms of money, it is essential to remember that physical assets will always have their value. 

This is especially true when it comes to precious metals such as gold and silver.

The price of gold has been steadily increasing over the last few years. In fact, over the previous three decades, this rise has been significant. In 1980, gold was valued at $843. In 1970, it was around $38.

As of writing this article, gold is valued at a fluctuating price between $1900 and $2000.

Should You rollover All your Funds Into A Gold IRA?

This ultimately depends on you. At the end of the day, I cannot give you a definite answer because you are dealing with your money. I can, however, offer advice.

If you have two retirement funds, as many people do, you could roll over one of them into a gold IRA and keep the other one.

If you only have one retirement fund, say a traditional IRA, it is still a good idea to roll it over into gold. The main reason for this is gold always increases in value.

Can You Roll Over Your 401K Into A Gold IRA?

If you have a 401(k), you are in luck. It can be rolled over into a gold IRA. However, there is a catch. You can do the rollover if you are no longer employed at the company where your 401(k) was taken out. 

If you still work for the company contributing to your 401(k), doing a rollover will be challenging.  In some cases, it is impossible to rollover a 401(k) if you are still employed with the contributing company.

Is a Gold IRA Rollover Worth It?

A rollover might seem like a highly specialized process. However, if you follow our step-by-step guide, you can get it done in no time.

Your first step is figuring out whether or not you need to do a direct or indirect rollover.

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