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Gold IRA Rollover: Step-by-Step Guide

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Are you thinking about what you want to do with your retirement account? For retirees, gold IRAs are increasing in popularity. Because of this, you’ll want to know how the rollover works before you commit to a gold IRA.

A gold IRA rollover occurs when you convert some of your retirement accounts into gold coins or bullions. Many view this as a good option since it’s thought that gold doesn’t lose value over time, unlike savings accounts. You choose between direct and indirect rollovers. 

If you think you want to have a physical asset to your retirement account, you should consider this option. I’ll be covering everything you need to know about these IRAs. Let’s get started!

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What is a Gold IRA Account?

Before you can learn the best way to use this IRA option, you’ll need to understand precisely what a gold IRA is. These options allow you to use traditional retirement savings methods, as well as other methods. Overall, they can be helpful to have.

A gold IRA is another kind of Individual Retirement Account. They make it possible to save physical assets in your retirement portfolio in the form of gold. You have the choice of gold, silver, platinum, and some other precious metals, but tax laws must approve of the metal you choose.

The gold IRA also is sometimes referred to as a “self-directed” IRA, which refers to you taking charge of the retirement account funds yourself. Often, people appreciate having a direct say in where their money goes.

How Gold IRA's Got Their Start

The financial crisis in 2008 created more substantial interest in gold IRAs. Many investors lost money and wanted a more secure place to store their life savings. The financial crisis led to a recession, where the stock market dropped about half of its value.

Gold tends to move in the opposite direction that stock market values move, making gold a reliable method for people to protect their investments. Many investors started using gold to hedge their losses from inflation. 

Gold IRAs also gained popularity when people realized that they were practical for diversifying portfolios.

Today, many people use gold IRAs for the same reason. There are many benefits to opening a gold account, although most people appreciate having physical assets, which is likely a reaction to banking online.

Most people don’t see their money physically.

What is a Gold IRA Rollover?

Rollovers are often used by people switching to a new job. Most people want to move their retirement plans to new plans from their new employer for convenience. However, this option is also available for those who want to change their IRA for improved investment results.

A gold IRA rollover means that you transfer some of your retirement savings into precious metals. In other words, you roll over the savings from your IRA into a gold IRA. There are many regulations you’ll need to follow to complete the process, but many people feel it’s worth it.

You also retain the tax-deferred status of your old IRA during the rollover, without having to pay any taxes or withdrawal fees. When you perform the rollover right, it’s effective at helping you save for your future. 

Overall, many people execute a rollover with their IRA every year.

How a Gold IRA Rollover Works

According to the Internal Revenue Service, or the IRS, there are three main ways to perform a rollover into a new IRA.

These options include the following:

  • Direct rollover: The funds move directly to your new IRA through a check. 
  • 60-Day rollover: A check comes to you for the rollover amount and you have 60 days to use it to make a new IRA without penalty. This form is the one you’ll see the most with gold IRA rollovers.
  • Trustee-to-Trustee rollover: The trustee of your IRA can work directly with the new trustee to transfer the funds.

Additionally, gold IRAs can be a Roth or traditional account, but you’ll need to create your self-directed IRA first. You’ll also need to choose a trusted, approved broker to purchase the gold from. 

Then, you need to select an institution that can store the physical gold for you. This video covers the process in more detail:

Click to play

How to Perform 401(k) to Gold IRA Rollovers

After opening your gold IRA, you’ll need to reach out to the people in charge of managing your 401(k). The trustees will ask if you want to execute the rollover using a direct or indirect rollover. 

Here are the differences between the two:

  • Direct rollover: The funds move from one account to another without your input.
  • Indirect rollover: The funds come out of the account through a check, and you deposit them into your new gold IRA. This option is a type of 60-day rollover.

If you’re eligible, you’ll receive the funds in your new gold IRA account. 

There are many rules that you’ll need to follow to ensure the process goes smoothly for you, so it might help to familiarize yourself with them more before making the change. I recommend that you read the Consumer’s Guide to Gold IRA Rollovers and Precious Metals Investing from Amazon.com.

This book explains how to protect your hard-earned money by investing in gold, silver, and many other precious metals. It also covers how to do the rollover without making costly mistakes through fees and additional taxes.

Final Thoughts

To summarize, a rollover is how you move your money from your current retirement account to the gold IRA. 

There are a few different ways that you can go about this process, but most people choose to set up their self-directed account and then perform a 60-day rollover with a broker they trust.

You want to make sure that you execute the rollover after considering whether you’ll benefit from having a gold IRA. Most people who choose to do this feel more comfortable having their investment in a physical form. Overall, there are plenty of benefits.

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Goldco is one of the leading provider of precious metals IRA's. They pride themselves in customer service and the ability to help individuals diversify their retirement accounts.

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