IRS Guidelines

IRS Guidelines for Gold IRAs

James Kelly

Like other IRAs, gold retirement accounts must follow strict IRS guidelines, which cover more than just storage. While the IRS doesn’t necessarily have a minimum investment requirement, it does have a cap. For instance, you can only contribute up to $6,500 to your IRA each year, though this number increases to $7,500 if you are over 50 years old.

Keep in mind that these contribution limits are for 2023 and could change within the coming years.

The IRS also has certain guidelines regarding IRA withdrawals. If you are younger than 59 and a half, then you are subject to a 10% tax if you make a withdrawal from your IRA; you are not subject to this tax if you are older.

Finally, people 73 and older must meet the minimum distribution requirements. Your required distribution amount depends on the total value of your investment, but you can use the IRS website to calculate your expected distribution amount.

Wrap Up

Gold IRAs are a great way to diversify your portfolio while investing in wealth preservation. Although they work much like other individual retirement accounts, they must follow additional IRS regulations.

You can fund your gold IRA in three main ways:

  • Transfer
  • Rollover
  • Cash contributions

With cash contributions, you can simply use your own money (from a checking or savings account) to purchase gold for your IRA. However, rollovers tend to be the preferred option for their simplicity. Rollovers also allow you to move funds from multiple types of retirement accounts, whereas transfers only allow IRA-to-IRA transactions.

Rolling over funds to a gold IRA is also a great way to further invest in your future and prepare for retirement. If you’re ready to open a gold IRA or have more questions besides “What is a gold IRA rollover?” a certified custodian can act as your guide and show you how to set up and fund an IRA while remaining legally compliant with the IRS.

Are there fees associated with a gold IRA rollover?

A fee is associated with a Gold IRA rollover, but the good news is that most find that the annual custodial fee is nominal, especially for all it covers.

The small annual custodial fee covers everything that is entailed with a Gold IRA, including:

  • Plan administration
  • Reporting
  • Statements
  • Insured storage of metals

Are you ready to do a gold IRA rollover?

You’re in good company. Since the Taxpayer Relief Act of 1997 broadened the types of investments allowed in an IRA, scores of investors have rushed to the Gold IRA rollover to own a tangible asset, gain control of their portfolio, lower their fees, and increase their investment options, all while staying in a tax-deferred and penalty-free status.

Advantage Gold has been educating and helping investors like you for the last decade. We are experts who love what we do.…

Gold IRA

How To Roll Over An Ira Or 401(K) Into A Gold IRA

James Kelly

You’ve decided that you want physical gold as part of your portfolio, you’ve digested this 401(k) to Gold IRA rollover guide, and you’re ready to get started. What’s next? Well, the good news is that rolling over an existing account into a Gold IRA is easy and can be completed in just a few simple steps:

  • Open a Gold IRA.
  • Complete your rollover.
  • Purchase your gold and other precious metals.

Open A Gold Ira

This process is quick and painless. Your account executive will walk you through the custodial application, making sure to “dot the I’s and cross the T’s.” The custodian “hosts” your account and files, reports, and sends all required correspondence and statements. You are never responsible for these tasks, as the custodian does them for you. The required application information is straightforward and typically easy to find.

Once you complete a few forms and e-signatures, you will be the proud new owner of a Gold IRA account.

Complete Your Rollover

Grab a statement from your current plan, then scan it, fax it, email it, or snail mail it to your account executive. Now you can sit back and relax. The executive will forward the statement to the custodian. The account custodian will contact the administrator of your old account and facilitate the rollover.

Yes, it is that simple.

In a few days, your new account will be funded. Remember, if you had $100,000 in your old account, you would have $100,000 in the new account. There are no taxes or penalties to facilitate the Gold IRA rollover.

Purchase Gold And Other Precious Metals

Once you’ve funded your account, your account executive will walk you through the options of eligible gold coins or bars. They can also advise you on any other precious metals allowed in the Gold IRA.

The IRS provides stringent guidelines on the quality, purity, and condition of the metals that you will hold inside your retirement plan:

  • Gold must be 99.5% pure.
  • Coins must come from approved government mints and remain uncirculated. They must also be in perfect physical condition.
  • Bars must match the same purity standard and can only be sourced from approved manufacturers.

Once you’ve decided what metals you want to own, your chosen Gold IRA company purchases, packs, insures, and ships them to your chosen depository.

The IRS regulates all approved depositories, which must meet stringent space, storage, security, administration, and reporting guidelines. The available depositories include some of the most renowned vaults in the world, such as the Delaware Depository, Brinks, JPMorgan, and HSBC Bank.

Upon their arrival, the depository will carefully inspect your metals to ensure they adhere to IRS standards and confirm that they are what they are supposed to be.

Your metals then go into your custodian’s section of the vault, where they sit safe and sound until you visit them at the depository or request physical distribution and have your metals sent to you.…

Gold IRA Rollover

What Type of Retirement Accounts Qualify for a Gold IRA Rollover?

James Kelly

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.

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. Your current custodian controls the transfer time frame. 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 internal rollover documents. The complete gold IRA rollover process generally takes around 2 weeks.

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