How Do I Set Up a Gold IRA - A Comprehensive Guide 

 Have a 401(k), TSP or other employer plan? Another retirement account from a former employer can usually be rolled into a gold IRA. See which retirement accounts are gold IRA eligible.

Step 1 – Which gold IRA custodian should you choose?

Your current retirement account most likely doesn’t permit you to hold physical gold and other precious metals, so you’ll have to establish a self-directed IRA with one that does. Certified Gold Exchange can work with any self-directed IRA custodian, so if you already have an account setup, you can stay where you are.

For new accounts we prefer Strata Trust, for two reasons:

• Flat fees. Strata charges a fixed yearly storage fee no matter how much your metal is worth. Many custodians use a sliding scale that rises with your IRA account value, so the fees increase as your metals do.
• Service. In our experience, Strata’s account setup process and customer service are stronger, and they tend to execute transactions faster.

If you’re still selecting a custodian you can compare fee structures in our gold IRA custodians list. 

Step 2 – What do you need to open your account?

We’ll take a basic application with you on a brief consultation call, so you’ll need the following information handy.

• Your contact details: full name, email, phone number and physical address.
• Your date of birth and Social Security number.
• Your beneficiaries: a primary beneficiary, and if you’d like, contingent beneficiaries who inherit if something happens to you and your primary beneficiary at the same time.
• Your current IRA information. Your current custodian and account number go on the transfer request document, which we’ll complete for you as well.

We’ll send you the documents to sign via DocuSign, and they’ll come straight back to us. If you prefer, we can email them to you to print out, sign and email back. Strata typically has the new account open within 24 hours.

Step 3 – How do you fund the account?

Most gold IRAs are funded with money from another retirement account. There are three ways to do it depending on your current account type.

• Transfer from an existing IRA. This is how most of our clients fund their gold IRAs. Once your new account is open, Strata sends your transfer request to your current custodian, and they’ll typically transfer funds in 7 to 10 days. You can transfer the whole account or part of it.
• Roll over a 401(k) or other employer plan. This is the next most common route. A plan from a previous employer can be rolled over in full. If you’re still working and are 59½ or older, many plans also allow an in-service distribution, which lets you roll over part of your balance while you keep contributing. You contact your plan administrator to request the rollover. Funds usually arrive in one to two weeks. Our gold 401(k) rollover guide walks through it.
• Make contributions. We don’t recommend opening a physical metals IRA with contributions because annual contribution limits are so small and the fees are too large for a smaller balance. Existing clients will often add annual contributions to the gold IRA they already hold though. 

A direct transfer between IRAs isn’t a distribution, so it’s tax-free (IRS Publication 590-A), and there’s no limit on how many you can do in a year (IRS: one-rollover-per-year rule). Confirm how the rules apply to you with your tax advisor. For more, see our gold IRA rollover guide and our gold IRA tax rules.

Why does your current traditional IRA need to be in cash first?

Your current IRA needs to be in cash before it can move. Self-directed IRAs can only receive cash, so the assets in your current account have to be sold first. That’s a call you’ll make to your current custodian.

And we recommend you make it the same day we take your application because the sale will typically take at least 24 hours to settle, and if the account isn’t in cash when the transfer request arrives, the whole process is delayed.

The only other hold-up is rare these days. Once in a while, a custodian requires a medallion signature guarantee. If yours does, we’ll walk you through how to get one from your local bank and mail the original form to Strata.

Step 4 – How do you make an investment in precious metals?

Before you invest, we’ll talk through what your retirement goals are and what you’re looking to accomplish by owning precious metals. Once your funds arrive, we help you put together your portfolio.

• Gold, silver or both. Gold coins and gold bars tend to be steadier price wise but cost more per ounce. Silver is a lot less expensive but it’s more volatile, and therefore has more room to move. Many of our clients hold both, but quite a few invest in mostly silver. The split is usually determined by which metal is the better value at the moment, judged by how far each sits below its all-time high.
• IRS-approved metal. The IRS sets minimum purity requirement for IRA-eligible metal: gold must be at least 99.5% pure and silver 99.9%. American Gold Eagles are the well-known exception: they’re 22 karat, but the law specifically allows them. 
• Widely traded bullion. American Eagles, Canadian Maple Leafs and other widely traded bullion coins and bars are the most common items held in retirement accounts, so they’re the easiest to price and the most liquid when you sell.
• A price you can trust. The best protection is working with a reputable company with a track record of good service and fair pricing. We back that up with Verified Fair Pricing: before we quote, we pull current pricing on your exact items from two of the largest online bullion dealers and work to beat the better price on qualifying transactions.
• Your price locks on your signature. We send you a direction of investment form to sign that authorizes the investment. You will also select your approved depository at this time. We lock your pricing in when we receive your signed document back, and your precious metals typically reach the depository within 7 to 10 days.

One caution: many gold IRA companies will try to steer you into buying “premium” or “exclusive” coins marked up around 30% or more. Our gold IRA scams guide shows how that works and how to avoid it. Our guide to buying gold for your IRA covers the purchase step by step.

Step 5 – Where will your assets be stored?

The IRS requires precious metals owned by your IRA to be held at an approved depository. You choose the depository on the direction of investment form that authorizes your investment. Strata offers several, but we usually recommend Delaware Depository, in Wilmington, Delaware, or its Nevada location.

• Internal transfers when you buy or sell. CGE and its trading partners hold accounts at both Delaware Depository locations, so when you buy or sell, metal can be transferred internally instead of shipped across the country.
• Fully insured. Metal at the depository is fully insured by Lloyd’s of London.
• Segregated or commingled. Segregated storage keeps your exact coins and bars apart from everyone else’s. Commingled storage holds like-kind items together. Segregated is only available for gold storage. Silver is too bulky, so an account holding both metals is stored commingled.

Our gold IRA storage guide covers depositories in more detail.

How long does it take to set up a new gold IRA?

Most clients can open a gold IRA, fund it, invest in metal and have it at the depository within two to three weeks after the first call.