The individual retirement account, or IRA, was first enacted into law in 1974. The IRA is a tax-deferred savings account that allows individuals to save for retirement. The account grows tax-free, and withdrawals are taxed at the individual’s current income tax rate.
Types of Individual Retirement Accounts
There are two types of IRA’s: the traditional IRA and the Roth IRA. The traditional IRA is funded with pre-tax dollars, while the Roth IRA is funded with after-tax dollars. Legislation enacted in 2001 and 2004 increased the contribution limit for both types of IRA’s. For 2020, the contribution limit is $6,000 for those under the age of 50, and $7,000 for those 50 and over. Employer contributions are not included in these limits. Individuals can contribute to both a traditional IRA and a Roth IRA in the same year, but their total contributions cannot exceed the annual limit.
According to the Investment Company Institute, as of 2019, there were about 29 million individual IRA accounts, with a total market value of about $8.3 trillion. According to the Investment Company Institute, as of 2019, there were about 29 million individual IRA accounts, with a total market value of about $8.3 trillion.
Are you looking for a way to protect your retirement savings? If so, you may want to consider a gold IRA rollover. In this blog post, we will discuss the seven steps that you need to take in order to complete a successful gold IRA rollover. By following these steps, you can rest assured that your money is safe and secure!
Check If You’re Eligible for a Gold IRA Rollover
Before you begin the process of rolling over your IRA into gold, it’s important to check and see if you’re actually eligible for a Gold IRA Rollover.
The first step is to make sure that you have a traditional IRA. This is an individual retirement gold IRA account that contains cash or investments, such as stocks and bonds. If you have a Roth IRA, you are not eligible for a Gold IRA Rollover.
The second step is to check and see if your custodian allows for Gold IRA Rollovers. Some custodians do not allow for precious metals IRA to be held in an IRA, so you’ll need to find one that does.
Find A Reputable Gold IRA Custodian
When it comes to investing in gold and other precious metals, a Gold IRA rollover is one of the most popular options. And for good reason – a Gold IRA offers a unique way to invest in gold and can provide tax advantages over other types of investments. But before you can enjoy the benefits of a Gold IRA, you need to find a reputable Gold IRA custodian. Here are a few things to look for when choosing a custodian:
1. Make sure the custodian is registered with the IRS. This ensures that they are legitimate and that they will be able to handle your gold IRA account properly.
2. Choose a custodian with experience. While there is a new gold IRA company offering Gold IRAs, you’ll want to choose one that has a track record of success. Look for a custodian that has been in business for at least a few years and has a good reputation with their clients.
3. Make sure the custodian offers competitive fees. There can be significant differences in the fees charged by different custodians, so it pays to shop around. However, don’t sacrifice experience and reputation for a lower fee – it’s not worth it!
4. Check out the custodian’s customer service policies. You should be able to reach customer service easily, and they should be able to answer your questions quickly and thoroughly.
5. Finally, make sure you’re comfortable with the custodian. You’re going to be working with them closely, so it’s important that you feel confident in their ability to meet your needs.
Transfer Your Current Retirement Account into The New Gold IRA
The third step in the process of rolling over your retirement account into a gold IRA is to actually transfer the funds from your current retirement account into the new gold IRA. This can be done through a direct transfer, which is when the custodian of your current retirement account sends the funds directly to the custodian of your new gold IRA. This is usually the simplest and most efficient way to complete the rollover process.
Another way to complete the transfer is through a 60-day rollover, which involves withdrawing the funds from your current retirement account and then re-depositing them into your new gold IRA within 60 days.
However, there are some restrictions on this method that you should be aware of before proceeding. For example, if you withdraw funds from a 401k plan, you will likely be subject to a 10% early withdrawal penalty.
Additionally, you may also be required to pay income taxes on the withdrawn funds if they have not yet been taxed. As such, it is generally advisable to complete a direct transfer whenever possible.
Select the Type of Gold You’d Like to Invest In
Now that you have decided to roll over your self-directed IRA into a gold IRA, it is time to take the fourth step and select the type of physical gold or precious metals IRAs you would like to invest in. You have three options when it comes to purchasing gold: bullion bars, coins, or rounds. Each option has its own set of benefits and drawbacks that you will need to weigh before making your final decision.
Bullion bars are the most popular choice for investors looking to purchase precious metals and gold. They are typically made from pure gold or a gold alloy and come in a variety of weights. The main advantage of investing in bullion bars is that they offer the lowest premium over the spot price of gold. However, they can be difficult to store and transport, and their value is more susceptible to changes in the market.
Coins are another popular choice for investors, and they offer a number of advantages over bullion bars. First, coins are easier to store and transport than bars. Second, most coins are minted by government agencies, which adds an extra layer of security. Finally, coins typically have a higher premium over the spot price of gold than bars, but they also tend to hold their value better in volatile markets.
Rounds are similar to coins in many ways, but there are a few key differences. Rounds are not minted by government agencies, so they do not carry the same level of security as coins. However, rounds typically have a lower premium over the spot price of gold than coins, making them a more affordable option for investors. Additionally, rounds can be easily stored and transported, making them a convenient choice for those who want to invest in gold and silver but do not want to deal with the hassle of storing and transporting bars or silver coins.
Store Your Gold in A Secure Location
The next step is to find a secure storage location for your gold. While you can store gold in a bank’s safe deposit box, it is important to remember that banks are not required to insure the contents of their boxes. For this reason, many people choose to store their gold in a home safe or other secure location.
When choosing a storage location, be sure to consider factors such as fire resistance, waterproofing, and security. Also, be sure to keep your gold IRA rollover paperwork in a safe place so that you can easily access it if you need to.
Also, when choosing the storage for your precious metals, keep in mind that there are gold ira storage fees.
Monitor Your Investment Regularly
The 6th step is to monitor your account and rebalance it as needed. As with these gold investments, the value of gold can go up or down over time. By periodically rebalancing your account, you can help ensure that your assets are properly diversified and that your portfolio remains on track toward meeting your long-term goals.
Once you’ve completed your Gold IRA rollover, The seventh and final step is to stay informed about the gold market and how it’s performing. This will help you make decisions about when to buy and sell gold, and ultimately maximize the return on your investment. There are a number of resources available to help you stay informed, including books, articles, websites, and newsletters.
By following these seven simple steps, you can roll over your IRA into a gold IRA and take advantage of the many benefits that gold has to offer.
Take a look at the best gold IRA rollover companies on the market, and select the one that is right for you: