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The Gold IRA Rollover Definitive Guide
In this page you will discover how to:
- Choose the right gold IRA custodian to activate your rollover or transfer.
- How to set up and fund your own gold IRA.
- Completely understand dealer fees and buy/sell spreads before you purchase.
- Protect yourself from free metal, zero fee scams and “best gold IRA company” fraud.
In 31 years of business the Certified Gold Exchange has never had a client complaint. Call 800-300-0715 to start the rollover or transfer process today.
1. What is a Gold IRA Rollover?
A gold IRA rollover is the process of converting an existing retirement account into a physical precious metals IRA.
2. A Brief History of Gold IRAs
Individual Retirement Accounts were introduced in 1974 when Congress passed the Employee Retirement Income Security Act. But the Taxpayer Relief Act of 1997 is what enabled individuals to hold precious metals, such as certain gold, silver, platinum and palladium in their retirement accounts.
3. What Type of Retirement Accounts Qualify for a Gold IRA Rollover?
IRAs
You can transfer funds from any traditional IRA, Roth IRA, SEP IRA, SIMPLE IRA or self-directed IRA to a gold IRA.
401(k)s
If you have an old or inactive 401(k), you can execute a gold IRA rollover. Inactive just means you no longer work with the company that created it. If you have a current 401(k), sometimes you can do an in-service distribution if you are over 59.5. This would enable you to do a gold IRA rollover with a portion of your 401(k) retirement savings.
403(b)s
If you have an inactive 403(b), you can do a gold IRA rollover. In some cases, if you’re over 59.5, you can do a partial gold IRA rollover via an in-service distribution.
457(b)s
If you have an inactive 457(b), you can execute a gold IRA rollover. If you have an active governmental 457(b) plan, you can do an in-service gold IRA rollover at 59.5. If you have an active non-governmental 457(b), you can only do an in-service gold IRA rollover after 70.5.
TSPs
If you have an inactive TSP, you can do a gold IRA rollover. If you’re over 59.5 and have an active TSP, you can do an in-service gold IRA rollover with your vested funds.
4. How Do I Transfer My Current Retirement Account to Precious Metals
First off, you need to establish a self-directed IRA. But with a custodian that allows you to hold physical gold and silver.
Your chosen gold IRA rollover dealer will be authorized with several and will help you choose your custodian.
(Most precious metals dealers that specialize in gold IRA rollovers will assist you in completing your custodian paperwork.)
Transferring From A Traditional, Roth, SEP IRA or Simple IRA
If you transfer funds between IRA accounts, it’s called a direct transfer because you never take possession of the funds.
Your gold IRA firm will help to complete a Transfer Request form. This document contains your current IRA account’s basic information, such as your name, existing IRA custodian, account number and the amount you wish to transfer.
Your gold IRA custodian will forward the completed document to your existing IRA provider. The transfer time frame is controlled by your current custodian. However, the process typically takes 10 to 14 days until your new gold IRA is funded.
Rollover From A 401(k), 403(b), 457(b) Or TSP
If you’re moving funds from a 401(k), 403(b), 457(b) or TSP account to a new self-directed precious metals IRA, it’s called a rollover.
A rollover is permitted when you change jobs or retire. However, some companies’ plans permit in-service distributions (rollovers) depending on your age. (Speak with your current retirement plans administrator to confirm if you qualify.)
There are two types of rollovers: direct and indirect.
With an indirect rollover, your existing 401(k) provider sends you a check for the proceeds which you deposit into your bank account. You then have 60 days to re-deposit those funds into your new IRA account.
Failure to do so is considered a distribution and is a taxable event. If you are under 59.5 years of age, you will also incur a 10% penalty.
With a direct rollover, your 401(k) provider will issue a check payable to your new gold IRA custodian. They will then mail the check to you to forward to them. Or they may send it directly to them on your behalf.
Most 401(k) providers can initiate your gold IRA rollover over the phone.
Government-sponsored retirement accounts require you to complete their own internal rollover documents. The complete gold IRA rollover process generally takes around 2 weeks.
Note: The IRS only permits one rollover (per account) during 12 months. However, you are allowed unlimited custodian to custodian IRA transfers.
5. Understanding Taxes and Required Minimum Distributions (RMDs) in a Gold IRA
When you transfer or rollover an existing retirement account to a gold IRA, it is not a taxable event because you transfer funds between qualified, tax-deferred plans.
How Do I Take Required Minimum Distributions From My Gold IRA?
An RMD is the minimum amount you must withdraw annually from your gold IRA once you’ve reached 73. (You will have to pay taxes on this distribution.)
If you’re required to take an RMD, your custodian will calculate it for you at the end of each year. To determine the amount, they divide your IRA account balance on December 31st, by a distribution period from the IRS’s “Uniform Lifetime Table.”
You have two RMD options with a gold IRA.
The first is a cash distribution. You’ll liquidate a portion of your gold and silver and have the proceeds sent to you.
Most custodians will send you an ACH payment for free.
The second option is an “in-kind” distribution. Where you can elect to have your RMD equivalent sent to you in gold and silver.
In this example, you will still owe the taxes on the RMD amount but can pay for them out of pocket.
A Roth IRA account is the only retirement account not subject to RMDs.
6. Choosing Your Gold IRA Rollover Custodian
By law, all custodians can offer physical precious metals accounts, but very few do so. There’s just not a lot of money in it. So the big custodians don’t even bother.
Below is a list of 12 self-directed custodians that permit gold IRA rollovers.
They will either charge a flat fee or a sliding scale based on the account value. Generally, flat fee structures are more cost-effective.
7. How To Designate Beneficiaries For Your Gold IRA
At a minimum, your gold IRA account will require a primary beneficiary. This is who will inherit your existing IRA should you pass away.
If your primary residence is not in a community property state, you can designate any person or entity. As well as the percentage they will inherit.
If you do live in a community property state and choose a primary beneficiary other than your spouse, they have to sign off on it. Consenting to your election.
You can also elect contingent beneficiaries for your gold IRA account. A contingent is “second in line” should both the account owner and primary beneficiary pass away at the same time.
Your custodian will require each beneficiary’s full name, Social Security number and date of birth. You can change the beneficiaries of your gold IRA at any time by submitting a one-paged form.
8. Difference Between A Gold IRA Representative And An Interested Party
On your gold IRA application, you can choose to designate a Representative or an Interested Party.
If you designate a Representative, you’re giving your gold IRA provider Power of Attorney. Simply put, they can transact on your account at their sole discretion. They do not require your signature to purchase precious metals.
You should never give Power of Attorney to a precious metals supplier!
Reputable gold IRA companies will not agree to become your Power of Attorney. But unethical firms will jump at the chance.
If your gold IRA company suggests you designate them as a Representative, it’s a red flag. Contact us immediately at 800-300-0715.
Designating an Interested Party, however, can be helpful. Because it enables your precious metal dealer to speak freely with the custodian about your account. So you don’t have to be on the phone for every interaction.
More importantly, an Interested Party has no authority to purchase gold and silver for your IRA account. Because your signature is required to authorize all buys, sells, and trades.
9. Types Of Precious Metals You Can Hold In Your Self Directed IRA
The Taxpayer Relief Act of 1997 first allowed precious metals in retirement accounts. It permits certain gold, silver, platinum and palladium coins and bars to be held in an IRA account.
This includes 1 ounce, ½ ounce, ¼ ounce and 1/10 ounce gold coins minted by the U.S. Treasury Department. As well as select bars, rounds and foreign coins of a certain purity.
- Gold must be 99.5% pure, silver 99.9%, and platinum and palladium both 99.95% .
- Bullion coins must be in Brilliant Uncirculated condition.
- Proof coins must be in original Mint packaging, flawless, with Certificate of Authenticity.
- Non U.S. Mint coins, bars and rounds must be accredited by a refiner, assayer or manufacturer. And must meet minimum purity requirements.
Below is a list of IRS approved gold, silver, platinum and palladium coins, bars and rounds.
10. How To Buy And Sell Precious Metals In Your Self Directed IRA
To execute a buy for your IRA account, first select the gold, silver, platinum or palladium products you would like to acquire.
Your gold IRA rollover provider will then send you an Investment Direction form for your signature. This document authorizes the transaction.
They will then work with your custodian to complete the purchase on your behalf. Your precious metals will then be shipped to your selected depository for safekeeping.
Selling precious metals in your IRA account is just as easy and fast a process. First, simply call your dealer to lock in your buyback price.
They will then send you an Investment Direction form for your signature to authorize the transaction.
Next, they will work with your custodian to have your metals transferred to their account. And finally, will wire the cash proceeds to your IRA.
11. Where Your Precious Metals Will Be Stored
Per Internal Revenue Code IRC-408n, your precious metals must be stored at a 3rd party (non-bank) depository.
Below are four popular precious metal IRA storage facilities in the U.S.
Ph: (302) 765-3889
ddsops@delawaredepository.com
Better Business Bureau Profile
The Delaware Depository is a licensed precious metals depository of the CME group and ICE Futures U.S. They employ multiple layers of physical and electronic security, along with proprietary systems and internal controls as one of the most secure operations of its kind.
The Delaware Depository maintains $1 billion in “all risk” insurance coverage through Lloyds of London. Risks include, “physical loss and/or physical damage, including mysterious disappearance and/or unexplained loss and shortage, employee dishonesty and theft. Loss or damage from fire, flood or other natural disaster is also covered.”
All precious metals stored with the Delaware Depository are fully allocated and held off-balance sheet, meaning that at all times clients are recognized as the sole owners and titleholders of said metal.
Ph: (877) 527-4657
us.salesinfo@brinksinc.com
Better Business Bureau Profile
Brinks has been a leader in hard asset logistics for over 150 years. With clients in over 100 countries and 1,200 operations facilities, Brinks has secured its market position as the world’s largest tangible asset logistics company.
Brinks has state of the art storage facilities and “all risk” insurance coverage.
International Depository Services
Ph: (888) 322-6150
info@IDS-Delaware.com
International Depository Services (IDS) is a CME Group and Intercontinental Exchange approved precious metals depository. They offer state of the art, secure storage facilities equipped with multi redundant security systems and Class III vaults.
IDS also offers geographic diversification with depositories strategically located in Delaware on the Eastern Seaboard, and in the heart of the U.S. in Texas.
IDS provides “all risk” Lloyds of London underwritten insurance protection.
Texas Precious Metals Depository
Ph: (361) 594-3624
notices@texasdepository.com
The Texas Precious Metals Depository is a privately owned, fully underground, state of the art depository.
The full value of all precious metals held in their custody is insured by Lloyds of London against external theft, employee theft, fire, flood and other natural disasters. All storage accounts are audited annually by ADKF, certified public accountants.
For information on safekeeping gold and silver outside of your retirement accounts, read “The 4 Best Gold Storage Options for Ultimate Peace of Mind“.
12. The Difference Between Segregated And Commingled Gold IRA Storage
On your gold IRA application, you can choose between commingled and segregated precious metals storage. Segregated storage is not available for silver because it’s bulky and takes up too much space.
Segregated Precious Metals Storage
Each custodian has their own segregated section at the vault just for their clients. With segregated storage, your precious metals will be marked and cataloged with your name and account number. And will be further segregated from other clients’ holdings.
When you decide to sell, exchange or take an in-kind distribution, you will receive the exact same precious metals you initially purchased.
Commingled Precious Metals Storage
With commingled storage, your precious metals will be held in your custodian’s segregated portion of the vault, but it will be commingled with other clients’ metals.
When you decide to sell, exchange or take an in-kind distribution, you will receive “like” precious metals. Meaning the same type of coins you purchased, but not the exact same ones.
When precious metals arrive at the depository, they are subject to a rigorous examination process. All gold and silver coins must be in perfect Brilliant Uncirculated (BU) condition. If not, they’ll be rejected and have to be replaced. Therefore, most clients opt for the more affordable commingled precious metals storage.
13. Understanding Buy/Sell Spreads and Gold IRA Custodian Fees
Investing in physical gold and silver costs more than investing in an ETF. Because with an ETF, you don’t own any physical precious metals. And so there aren’t shipping, insurance and storage costs.
But many investors want outright ownership of their precious metals. And they tend to not mind the slightly higher costs involved. Because of the peace of mind that comes from owning a real tangible asset.
Buy/Sell Spreads
Most precious metals dealers are market makers. Meaning they make a buy price and sell price for every item in their inventory. If their buy price was the same as their sell price, they wouldn’t make any money and would go out of business. The difference between the buy and sell price is called the buy/sell spread.
Below is an actual buy/sell spread example from the web on 5/16/23. If a dealer sells a 1oz American Eagle gold bullion coin for $2,194 and will immediately buy it back for $2,053. Their buy/sell spread is 6.63%.
All precious metal products will carry a different buy/sell spread. And that spread is constantly fluctuating due to supply and demand conditions.
When it comes to buy/sell spreads, Southern California dealers are typically the most expensive. In fact, investors lose hundreds of millions of dollars annually from this region’s gold IRA rollover companies.
Chances are you’ve already spoken with one of these overpriced gold IRA providers. Or you’ve at least seen their ads due to their enormous marketing budgets.
These gold IRA companies have appealing brands. And often hire well known conservative celebrity spokespersons. But they will likely charge you at least 20% more than a reputable gold IRA company.
Warning signs of overpriced gold IRA companies:
- Southern California location
- Ranked Best Gold IRA Company by paid affiliates
- Conservative celebrity spokesperson endorsements
- Offer you free gold and silver coins
- Offer to pay your custodial fees
- Sell “Exclusive” or “Premium” gold and silver products difficult to price check
- Expensive conservative TV, radio or YouTube ads
If the gold IRA company you’re working with exhibits any of the above warning signs, chances are you’re getting ripped off.
The Certified Gold Exchange is a market beater. We don’t set a buy or sell price on the products we trade. When you’re ready to buy we will search the six major discounters for the lowest buy price of the day based on volume. Then we beat their quotes. Read our Price Match Plus Guarantee or call our gold IRA specialist at (800) 300-0715 for full details.
| Account Set-Up | Annual Account Fees | Storage/Insurance (Commingled) Fees | Transaction Fees | Total First Year Fees | Annual Fees Thereafter | |
|---|---|---|---|---|---|---|
| Strata Trust | $50 | $95 | $100 | $90 | $335 | $195 |
| Equity Trust | $50 | $100 | $100 | $30 | $280 | $200 |
14. Don’t Be Misled By “Best Gold IRA Companies” Reviews
If you’ve been researching gold IRAs, chances are you have seen “reviews” for the “Best Gold IRA Company”. In fact, they’re hard to miss because they dominate the Google search results for gold IRAs and related terms.
An “independent” website that has “reviewed” the “Best Gold IRA Companies” seems helpful. And with Forbes, Money, Business Insider and Investopedia participating, it has to be legitimate right?
Not so fast…
Upon closer inspection, you’ll realize that they’re paid affiliates. They make money from the same gold IRA companies they’re recommending to you.
Seems like a conflict of interest doesn’t it?
These affiliates are often paid an upfront fee for your information. And typically a commission of 3-6% of the gross value of your retirement account if you set up a gold IRA with them.
Below are some examples of “Best Gold IRA Company” review pages. Below each screenshot you’ll find their disclosures. That explains how they “may be” paid by the dealers they’re recommending.
One of the “Best Gold IRA Companies” frequently recommended is a California dealer, sued by the Los Angeles City Attorney for fraud against senior citizens.
Another supposed “Best Gold IRA Rollover” company has over 30 client complaints in just the last three years. And another one has over 20 complaints.
The following quotes are from real customers who discovered their gold IRA company was paying affiliates.
“Had I known from day one that ***** ****** paid online affiliates to create fake reviews, I would have never attempted to do business with them.”
“I found that ***** was paying for endorsements on more than 225 websites.”
Many of these so-called “Best Gold IRA Companies” are actually the highest priced dealers in the precious metals industry. So beware. And don’t hesitate to call us at (800) 300-0715 if you’ve gotten into hot water.
For an in-depth expose on gold IRA dealer scams, read our “7 Gold and Silver Blunders” report.
15. Why You Want To Avoid “FREE” Gold Or Silver Promotions
If it sounds too good to be true, it probably is. When a dealer offers you “FREE” gold coins or silver coins, do you really think they’re free?
These dealers typically charge 20% more than you should be paying to make up for the cost of your “FREE” coins. That comes directly out of your retirement funds.
If you fall for this trick, you could end up paying an extra $20,000 for every $100,000 invested.
Below are some examples of “FREE” precious metals promotions to avoid.
16. Avoid “No Fees” and “Free Gold IRA Rollover” Promos
Every self-directed gold IRA custodian charges fees for their service. (In section 6 we’ve included links to their fee schedules.)
So why are so many gold IRA rollover companies willing to pay these fees for the client? It’s because they use your desire to get something for free to entice you to choose them.
Make no mistake about it, you’re paying your gold IRA account fees one way or the other. It’s just like the “FREE” gold coins scam above. Your gold IRA company will likely overcharge you by 20% or more for your precious metals.
Giving up 20% of your retirement savings to avoid a few hundred dollars in IRA account fees is a terrible deal for you. But a real windfall for the unscrupulous dealer that tricked you.
17. How To Choose A Reputable Gold IRA Company
Choosing a reliable gold IRA company will have a bigger impact on your success than anything else.
Unfortunately, there are countless gold IRA horror stories online of folks being taken advantage of. You don’t want to be one of them.
So let’s start with what you should avoid first off.
Watch out for the following red flags.
- Steer clear of Southern California gold IRA companies. The concentration of unscrupulous dealers there is overwhelming
- Don’t choose a precious metals IRA company just because a conservative celebrity said they were trustworthy. They are paid very handsomely to say that. And where do you think those funds ultimately come from?
- Avoid “Best Gold IRA Companies” review pages. The site “reviewing” the companies is paid by them. Conflict of interest anyone?
- Be leery of high-priced TV, radio or YouTube ads. They cost a fortune and guess who’s paying for them?
If you just watched out for the above red flags, you’re way ahead of most people.
What to look for in a reputable gold IRA company.
You want your precious metals supplier to be fairly priced. After all, you’d like to get as much gold and silver for your money as possible right?
Your gold IRA rollover company should also have an unblemished reputation. Take the time to read the complaints others have lodged against the company you’re researching. Don’t just trust the A+ rating.
It’s important that you acquire all relevant public information before contacting any gold IRA providers. Here are two surefire methods for learning about a gold IRA dealer’s public reputation.
- Search the dealer’s name on Google followed by the words lawsuit, scam, and complaints. Well-funded dealers often use reputation management tactics. And can bury negative search results, so make sure to look past the first few pages.
- Call us, and we’ll supply you with third-party public information on the company you’re considering for your gold IRA rollover. This only takes two minutes and will help you discover the facts you need to make a smart decision.
And lastly, if a gold IRA company has 1,000s of 5 star reviews, beware. There are services online that sell “reviews”. And many dealers will try to drown out their poor reviews by buying countless fake ones.
So always call us at 800-300-0715 to get background information on the gold IRA company you’re considering. We only supply third-party public information. These reputation reports could save you thousands of dollars. And eliminate the stress that comes from dealing with a problematic gold IRA rollover firm.
Next, you may want to confirm how long the gold IRA company has been in business. According to the Bureau of Labor and Statistics, 20% of small businesses fail in their first year. 50% fail within 5 years. You may find it prudent to steer clear of companies that have not been in business for at least 10 years.
To confirm how long a gold IRA rollover company’s website has been online, check out the internet archive. Click on https://archive.org/web/, then type the company’s website URL into the search bar. You should see results like this. Confirming that their website has been online for many years, in our case 19.
Whereas the following firm has only had an online presence since 2016.
18. How Have Gold IRAs Performed?
The following gold chart shows the price trajectory from August 5th, 1997, when gold IRA rollovers were enacted, through September 1st, 2023. The average annual return over this period has been 20.08%.
19. Can I Store the Precious Metals in my IRA Myself?
“Gold and other bullion are “collectibles” under the IRA statutes, and the law discourages the holding of collectibles in IRAs. There is an exception for certain highly refined bullion provided it is in the physical possession of a bank or an IRS-approved non-bank trustee. This rule also applies to an indirect acquisition, such as having an IRA-owned Limited Liability Company (LLC) buy the bullion. IRA investments in other unconventional assets, such as closely held companies and real estate, run the risk of disqualifying the IRA because of the prohibited transaction rules against self-dealing.”
Source: https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-iras-investments
Keep in mind that you always have access to your precious metals, but if you take a distribution from any IRA account except a Roth, it’s a taxable event. Also, if you are under 59.5 years old, the IRS will impose a 10% penalty for early withdrawal.
Gold IRA Rollover FAQ’s
Is it a good time to do a gold IRA rollover?
Investing in gold is a personal choice. Historically, precious metals have performed well during inflationary times. As an example, Nixon took the U.S. off the gold standard in 1971. And between 1971 and 1980, the U.S. experienced record inflation. In those same years, silver bullion increased by 33 times and gold bullion by 24 times. In the last few years, the U.S. has experienced the highest inflation since 1980.
Can I start a gold IRA from scratch with an annual contribution?
Yes. But it typically doesn’t make sense to do so because of the fees involved. First year gold IRA fees are $320 with each consecutive year costing $195.
Can I make annual contributions to my gold IRA?
Yes. If you’re under 50 you can contribute $6,500 per year. If you’re over 50 you can contribute $7,500 per year to a gold IRA.
How do I pay my gold IRA rollover fees?
You can elect to have the first year’s custodial fees deducted from the gold IRA rollover proceeds. Or you can pay with a credit card.
Are gold IRA rollover fees tax deductible?
Yes.
Can I do a partial gold IRA rollover, or do I have to move my entire retirement account?
Yes, you can do a partial gold IRA rollover.
Can I leave my gold IRA to my church or a charity?
Yes, but if you are in a community property state and married, your spouse will have to sign off on it.
Can I exchange the precious metals inside my self directed IRA?
Yes. You can trade, buy and sell at any time within your gold IRA with no tax consequences.
Can I change depositories?
Yes. If you are not happy with your current depository, you may elect to have your metal moved. Keep in mind that you’ll have to pay shipping costs to transfer your physical gold and silver.
Will I receive statements for my gold IRA?
Yes, you will receive quarterly statements from your gold IRA custodian. Additionally, all the custodians that the Certified Gold Exchange works with offer online access to your account in real-time.
How do the custodians value my gold IRA account?
Your gold IRA custodian is not a precious metals dealer so they don’t know the exact market value of your silver or gold coins because most items are more valuable than just the spot price, especially coins. So for simplicity sake, most custodians use the spot price to determine your “value”. Which is less than your actual value.
How do I know the precious metals are really in my retirement account?
You can visit your precious metals depository to view your gold and silver. Just call the gold IRA company you’re working with and ask them to set up an appointment with your depository. .
Can I hold other assets besides gold and silver in my self directed IRA investment portfolio?
Yes. An advantage of a self-directed IRA account is you have many more investment portfolio options.
Who is the Certified Gold Exchange and why should I choose them?
The Certified Gold Exchange is a family business based here in Fort Worth, Texas. We’ve been a leader in the precious metals industry since 1992, over 30 years.
In all that time, we’re proud to have never received a single client complaint.
God knows our country has experienced a big price jump on all the goods and services you use. This is a trend most expect to continue. Rest assured that we have a plan to increase your IRA and 401k account’s purchasing power.
We hope you will allow the CGE family to help you to protect your assets in these trying times. Call our friendly staff today at 800-300-0715.
Written by Pat Collins and John Halloran
Avoid These 10 Gold IRA Scams.
DEALERS USE ON YOU
