Gold IRA Rollover

Opening a new gold backed IRA or rolling over your current retirement account (known as a Gold IRA Rollover), can be a smart option for your retirement savings.

Gold and other precious metals serve as a long-term hedge against inflation and provide physical asset security so they are a particularly smart choice when you are looking for your investments to serve you into your retirement. You can learn about some if the differences of investing in precious metals versus traditional paper assets on our gold vs stocks section.

After you have made the decision that a gold or precious metals IRA is the right choice for you, there are several steps you must take in order to open your account and begin the investing process.

Step 1: Choosing a Gold IRA Rollover Company

First, you need to select a third-party Gold IRA company to help you setup your account. The IRS maintains strict standards about the kind of precious metals that can be purchased in a gold IRA rollover, as well as the purity standards (also known as “fineness) of the metals. This means that you must purchase only IRS-approved coins or bullion in order to fund your gold IRA.

We have a researched list of companies you can work with on our gold IRA reviews page.

Step 2: Opening a Self Directed IRA

You will need to open a self directed IRA. This can be done very easily through your Gold IRA company, and will set you up to begin investing in precious metals. Self directed IRAs are used for a gold-backed IRA investment and they allow for a greater amount of control by the account holder. The company you decide to handle your gold IRA rollover will help you with the required paperwork to open your self directed IRA.

Here is the gold IRA rollover or transfer process for opening a new self directed IRA account:

gold IRA rollover

After you open an account, you can choose either a local or national storage plan. In order to adhere to IRS standards, your precious metals must be in the possession of a custodian or a trustee, rather than you, the account holder. However, you have some say in who you select as a custodian or trustee.

If you choose a local plan, the gold you invest in will be sent to you directly, so you then have the choice of deciding where to store it, and who will act as trustee. If you choose a national storage plan, your gold or precious metals will be sent to a national storage facility, and that facility will take possession as the custodian.

Step 3: Funding Your Gold IRA Rollover

After your IRA has been set up, you will need to fund it. This can be done by transferring contributions or rolling over from your existing retirement plan. Depending on which Gold IRA company you work with, there may be a minimum investment necessary to fund your new gold IRA rollover or transfer.

The I.R.S. rules and requirements for IRA rollovers and distributions can be found here.

Step 4: Selecting Your Precious Metals

Once the gold IRA rollover or transfer process is started, you will need to decide what kinds of precious metals to purchase. You will need to decide whether you will invest in gold, silver, platinum or palladium, or some combination of the four. Most gold IRA companies will assign you an account specialist who will explain and/or recommend a combination of assets to purchase depending on your specific goals.

However, the final decision is always up to you so be weary of any “aggressive” sales tactics towards any one type of investment option.

Learn more on our gold IRA investing section.