Are you considering diversifying your portfolio with assets that can help protect against economic uncertainty, inflation and a possible stock market crash? If so, a Gold and Silver IRA rollover could be right for you. These self-directed IRAs allow you to invest in physical precious metals and might just help you fight inflation.
In the following guide, you’ll learn the ins and outs of how to safely invest in a Gold and Silver IRA rollover. We’ll explore the benefits, setup process, storage options and more. All to help you make an informed decision about securing your retirement portfolio.
Gold and Silver IRA Rollover Key Takeaways
- Gold and Silver IRAs can offer protection against market crashes and a hedge against inflation.
- Choosing a reputable precious metals company and gold IRA custodian.
- How to establish and fund your new precious metal IRA.
- Select an IRS-approved depository.
- Understand gold IRA fees and buy/sell spreads.
- Learn how to buy and sell gold & silver inside your precious metals IRA account.
Understanding Self-Directed IRA Rollovers
In order to hold precious metals in a retirement account, you must first establish a self-directed IRA. Per IRS code 408(m), you’re permitted to hold the following types of precious metal investments:
- Gold Bullion
- Silver Bullion
- Platinum Bullion
- Palladium Bullion
Types of Precious Metals Allowed
IRA approved gold coins include the popular American Eagles and Canadian Maple Leafs. Other sovereign gold coins are permitted if they’re 99.5% pure. Gold bars and rounds produced by a mint approved by the IRS with a purity of 99.5% are also allowed.
IRA-admissible silver coins include the American Eagles and Maple Leafs as well. Other sovereign mint silver coins are also permitted if they’re 99.9% pure. Select silver bars and rounds are allowed if they meet the 99.9% purity requirement.
Platinum coins and palladium coins, bars or rounds must meet a 99.95% purity.
Selecting the right precious metals for your Gold or Silver IRA requires careful consideration. Although certain gold, silver, platinum and palladium items are permitted, most investors currently prefer silver bullion because of its upside potential compared to gold.
Your best bet is to stick with popular, widely traded bullion items.
*It is important to note that rare or collectible precious metal coins are not eligible to be held in a self-directed IRA. Also, stay away from so-called semi-numismatic or exclusive coins because you’ll end up overpaying for them. Visit our “10 Gold IRA Scams” page to avoid getting overcharged by 30%.
Choosing a Reputable Gold and Silver IRA Company
When researching and comparing gold investment companies, it is important to consider criteria such as customer reviews, complaints, the company’s longevity and current or past litigation. The experience of a Gold IRA company also plays a significant role in determining its credibility.
To ensure a successful gold and silver IRA rollover, choosing one of the best gold IRA companies is imperative. Reputable gold IRA companies can help with custodian selection, guide you through the account setup process and facilitate the acquisition of suitable precious metals for your IRA. By working with a reputable gold investment company, you can be confident that your gold IRA investments are secure and well-managed.
*Beware of “Best Gold IRA Company” review sites because they’re paid affiliates. Countless gold IRA investors fall for this scam. Check out our “10 Gold IRA Scams” page for more details on how to avoid unscrupulous dealers that will overcharge you.
Selecting Your Gold and Silver IRA Custodian
Most custodians only offer a traditional IRA that permits you to own stocks, bonds and mutual funds in your retirement accounts. Therefore, you must set up a self-directed IRA with a custodian that offers precious metals IRAs. Your custodian plays a pivotal role in ensuring the security and the proper management and protection of your precious metal assets. To select a gold IRA custodian, you should:
- Research the reputations and track records of potential custodians
- Compare their gold IRA fees and services provided
- Ask the Certified Gold Exchange for a referral to a reputable self-directed IRA custodian.
Setting up Your Gold and Silver IRA Rollover
Setting up a precious metals IRA involves a few key steps:
- Establish a new self-directed IRA account before completing your rollover
- Elect an Interested Party (allows gold IRA company to engage with custodian on your behalf)
- Fund your precious metals IRA account
- Selecting an IRS approved depository for safekeeping of your precious metals investments
- Purchase precious metals
Once your gold IRA account has been established, you can begin the IRA rollover process to move funds from an existing retirement account to your Gold and Silver IRA.
Eligible Retirement Accounts for Gold IRA Rollovers
There are several types of retirement accounts eligible for the gold IRA rollover process. These include:
- Traditional IRAs, Roth IRAs, SEP and Simple IRA accounts
- 401(k) accounts
- 403(b) plans
- 457(b) plans
- Thrift Savings Plans
- Select pension plans from previous employers
Before commencing a gold and silver IRA rollover, ensure your existing retirement account qualifies for the process.
All types of Traditional IRAs qualify for the gold IRA rollover process.
All 401(k)s, 403(b)s, 457(b)s and TSP plans from previous employers are permitted to do gold IRA rollovers. If you’re still working for the company that set up your plan but are over 59.5 years of age, you may be allowed to perform an “in-kind” gold and silver IRA rollover, allowing you to access a portion of the account.
Call our precious metal IRA specialists at (800) 300-0715 to confirm what type of gold and silver IRA rollover options you have.
Process To Complete a Gold and Silver IRA Rollover
The gold IRA rollover/transfer process facilitates the tax-free transfer of funds from an existing retirement account to a precious metal IRA.
To transfer funds from an existing Traditional IRA you’ll simply complete a Transfer Request form with your new custodian to be sent to your current custodian.
For 401(k), 403(b), 457(b) and TSP plans, you can verbally initiate an IRA rollover by contacting your current plan administrator. Although, some companies will require their own internal documentation.
Top gold IRA companies will hold your hand throughout to ensure a smooth gold IRA rollover process and a secure investment in precious metals.
Tax-Free Gold and Silver IRA Rollovers
Tax-free gold IRA rollovers enable investors to move funds from their existing retirement accounts to a precious metals IRA without any tax penalties. To execute a tax-free gold and silver IRA rollover, you must conform to the 60-day rollover rule, necessitating the deposit of funds into another IRA within a 60-day timeframe from the receipt of funds.
If you’re able to execute a direct rollover, meaning your funds are sent directly to your new custodian, you won’t have to worry about the 60-day time frame.
Storage Options for Gold and Silver IRA Rollovers
When it comes to storing the precious metals in your Gold and Silver IRA, there are a few options. Below, we’ll explore a few different locations and the differences between segregated versus commingled storage.
Physical Precious Metals Approved Depositories
There are several popular depositories to choose from when storing your precious metals IRA investments, including:
- Delaware Depository
- Brinks Global Services USA
- International Depository Services
- Texas Precious Metals Depository
Each IRS-approved depository implements a range of security measures to ensure the safety of your precious metals, such as full insurance coverage, high-level security systems like alarms and video surveillance and state-of-the-art security measures.
When choosing a depository for your new gold IRA, factors like the depository’s reputation, security precautions and insurance coverage should be taken into account. By choosing a reputable and secure depository, you can have confidence that your precious metals investments are well-protected and properly stored.
Segregated vs. Commingled Storage for Precious Metals Investments
For storing your precious metals, you can opt for either segregated or commingled storage. Segregated storage involves keeping your precious metals separate from other clients’ holdings, ensuring that your metals are individually marked and cataloged with your name and account number.
On the other hand, commingled storage involves holding your precious metals with other clients’ metals in your custodian’s segregated portion of the vault.
*Segregated storage is only allowed for gold IRA accounts. Silver IRAs aren’t permitted.
Managing Your Gold and Silver IRA After the Rollover
The management of your Gold and Silver IRA may entail the following steps:
- Purchase of precious metals
- Liquidation of precious metals
- Taking Required Minimum Distributions (RMDs) or regular distributions
In the following sections, we will discuss the steps involved in buying and selling precious metals within your self-directed IRA as well as the factors to consider when selecting the right precious metals investments.
Buying Precious Metals
To purchase precious metals for your Gold and Silver IRA, you need to follow these steps:
- Choose your desired precious metals products
- Endorse an Investment Direction form to purchase gold, silver and other precious metals
- Your gold IRA rollover provider will work with your custodian to complete the purchase
- Have the precious metals shipped to an approved depository for safekeeping
When you purchase gold and silver for your IRA, it is essential to acquire widely traded gold and silver bullion products.
Don’t get tricked into buying exclusive coins from a Southern California precious metals dealer. You will typically be charged anywhere from 33% to 65% for these overpriced items. If you’re currently about to buy precious metals for your IRA and are being pushed into obscure and exclusive gold and silver coins, call CGE immediately at (800) 300-0715 to save a bundle.
Selling Precious Metals
To Sell a gold or silver IRA, simply:
- Reach out to the Certified Gold Exchange and request a high buyback quote search
- Upon agreement, endorse an Investment Direction form authorizing the liquidation
- CGE will then buy your precious metals and deposit the proceeds into your IRA account
By following these steps, you can sell your precious metals at the highest price available the day of the trade
Taking Distributions from your Gold IRA Account
If you are over 59.5 years of age, you can take distributions from your gold and silver IRA whenever you choose.
If you have a Traditional IRA (not a Roth) and have reached 72.5 years of age, you’re obligated to take Required Minimum Distributions from your gold and silver IRA account.
With precious metals IRAs, you have two different options to take a distribution. The first would entail selling a portion of your precious metal and taking the proceeds as a distribution.
The second option would enable you to take a distribution in the form of physical gold or silver bullion. Your metals would then be mailed to your home. Your self-directed IRA custodian would determine the value of your distribution by multiplying the number of ounces you’re taking by the spot price of the precious metals.
Self-directed Roth IRAs with physical precious metals have the same rules as traditional IRAs. They also have the same tax-free distributions when you do withdraw funds.
It’s almost never a good idea to take an in-kind distribution from a Roth because you would no longer have the advantage of tax-free growth once the metals are in your hands.
Fees and Expenses
What does a gold IRA cost? Below are the various custodial fees and expenses to execute a gold and silver IRA rollover:
- Setup fees: typically range from $100 to $200
- Transaction fees: may vary depending on the custodian and the type of transaction
- Annual custodial fees can range from $50 to $200
- Storage and insurance fees: typically billed annually and may range from $100 to $500
- Contact CGE for a list of the most cost-effective gold IRA custodians
What Should a Precious Metals Dealer Charge?
The buy/sell spread is how gold dealers make their money. It’s the difference between what a dealer will sell you an item for and what they will repurchase if for at that same moment. Southern California dealers are notorious for having outrageous buy/sell spreads ranging from 33% to 65%.
Steer clear of “exclusive” gold and silver coins that are difficult to price check. Stick with widely traded gold and silver bullion coins to make sure you’re getting a fair deal. If your dealer attempts to pressure you into buying obscure coins with odd weights, beware. You’re most likely going to be charged an arm and a leg for the privilege.
Before investing in a Gold and Silver IRA, it is crucial to understand how buy/sell spreads work and what your precious metals dealer is going to charge you. By understanding the costs associated with your investment, you can make an informed decision about whether a Gold and Silver IRA is the right choice for your retirement portfolio.
Advantages of Investing in Precious Metals
A key advantage of gold individual retirement accounts is their potential to shield against inflation and market instability. Investors may find that precious metals serve as a safeguard against the devaluation of paper assets and offer portfolio diversification to preserve wealth amid inflation and economic instability.
When including gold or other precious metals in your retirement account, you may experience a range of advantages, such as:
- Wealth protection by decreasing potential investment instability and risk
- A hedge in case of an economic downturn or rampant inflation
- Providing a tax-efficient shelter for potential precious metal profits
Overall, investing in gold, silver, platinum and palladium can help provide a solid foundation for your retirement portfolio, allowing you to navigate uncertain economic times with confidence.
Gold and silver IRA rollovers provide investors with a unique opportunity to diversify their retirement portfolios and protect their wealth against economic uncertainties. By understanding the benefits, setup process, storage options and risks associated with these investments, you can make an informed decision about whether a gold IRA rollover is the right choice for your retirement portfolio. With proper planning and the guidance of a reputable gold IRA company, you can secure your financial future and enjoy the peace of mind that comes with a well-diversified and protected retirement portfolio.
Frequently Asked Questions
Are gold and silver IRA rollovers a good idea?
Precious metals IRAs can be a great way to diversify your retirement portfolio. Silver and gold IRAs have historically been a safe haven asset to protect against inflation and market uncertainty. All investments carry risk.
Can I purchase gold and silver in my existing retirement account?
Only if it’s a self-directed IRA with a custodian that permits you to hold physical precious metals. Visit our “Precious Metals IRA Custodians” page for a complete list of firms that allow you to hold physical precious metals investments.
What is the best type of gold and silver to buy?
Gold and silver American Eagles and Maple Leafs are a great option. Stay away from obscure, hard-to-price check “exclusive” coins.
Are the “Best Gold IRA Companies” found on Google really the best?
Typically, no. The precious metals industry has been inundated with affiliate marketers recommending dealers that oftentimes grossly overcharge you. Precious metals IRA companies found on these lists typically pay the owners of the websites a commission for your information. Positive gold IRA reviews can be misleading.
Are “free silver coins” promotions legitimate?
No. The gold IRA dealer offering you “free” metal will likely overcharge you by a lot. Then they’ll give you a few silver bars or coins and pay for them out of the huge profits they made on your gold IRA rollover.
How are my precious metals valued at the depository?
Your custodian will most likely value the precious metals IRA using the spot price of gold, silver, platinum and palladium. Gold prices are derived from the COMEX daily.
Is the Certified Gold Exchange the best retirement gold and silver company?
In over 30 years as a family-run business, CGE has never had a single client complaint. If you’re new to the metals market and want a gold and silver IRA rollover call us today at (800) 300-0715.