What Are the Eligible Account Types for Gold IRA Rollover? Updated Guide for 2023

When it comes to IRA accounts, gold seems to be one of the best assets you can invest in. Gold and other precious metals have proven to be an excellent hedge against inflation, making them more attractive to the average investor.

Even though precious metals aren’t necessarily affordable, to begin with, there are many options out there that will definitely suit your budget. All it takes is patience and choosing the right gold IRA custodian.

If you already have a traditional IRA account, all you have to do to start investing in gold coins or other related assets is a rollover. When you make a rollover, you take part (or all) of your investment portfolio and convert it into precious metals assets.

Who is eligible for an IRA to gold rollover service, though? Today, we’ll cover all the information you need to get started. By the end of this page, you’ll be more than ready to make gold IRA rollover investments the smart way.

What Accounts Can Be Rolled Into a Precious Metals IRA? – Eligible Account Types for Gold IRA Rollover

If you want to invest in a precious metals IRA today, you’ll be pleased to know that any tax-advantaged retirement account is eligible for the transfer.

Some of the eligible accounts for gold IRA rollovers include:

  • Traditional IRAs

  • Roth IRAs

  • Employer-sponsored and self-directed 401(k)s

  • TSPs

  • 457(b)

  • 403(b)

  • SEP IRAs

Now, keep in mind that employer-sponsored accounts may need a few extra requirements to process the rollover. If you have a 401(k), for example, you may start your gold IRA rollover after you’ve finished working at your current company.

Some employers don’t allow their workers to make a rollover, so you’d have to wait. If you’ve already reached the 59.5 years-of-age rule, then you may do a partial rollover after you end your contract.

Other than that, making a rollover to gold IRAs is accessible for most people, as long as they already have a tax-advantaged retirement account.

What You Should Know About Making a Gold IRA Rollover

Are you eager to start investing in gold, silver, platinum, or palladium through a precious metals IRA? Let’s cover everything you must know about rollover services and the best gold IRA companies you can work with today.

About Gold IRAs

We’ll start with the basics. A gold IRA account allows you to hold precious metals, which are known for being useful to fight stock market volatility or inflation.

One of the main benefits of investing in physical gold or silver through an IRA is that you’ll still get tax benefits as with traditional retirement accounts.

Even though investing in a gold or silver IRA can bring many advantages to your investment portfolio, we don’t recommend converting all your assets to precious metals. Gold, for example, isn’t guaranteed to increase in value, and you won’t earn dividends.

To create a new gold IRA account, you’ll have to work with a custodian throughout the whole process and choose the right company to buy the assets. There are many gold IRA companies in the precious metals industry, so it’s a matter of choosing wisely (we’ll talk more about that in the next sections).

About Gold IRAs

What Are the Benefits of Making a Gold IRA Rollover?

Let’s look at some of the benefits you’ll get from a gold IRA rollover:

Tax Benefits

You may get different tax benefits from your gold IRA rollover, depending on the type of account you’re working with. If you work with traditional or SEP IRAs, for example, you may make tax-free contributions.

On the other hand, if you have a Roth IRA, you can make tax-free withdrawals. You can talk to your custodian to see which option is more appropriate according to your goals.

Reliability

The price of gold and other precious metals tends to remain stable even during times of financial turmoil. If you’re looking to protect your retirement savings, then a gold IRA is a great option to consider.

Diversification

As mentioned at the beginning of this article, you’ll be able to diversify your portfolio thanks to your gold IRA rollover. Even though gold may not always yield high returns, rest assured that it doesn’t face huge losses either due to its stable nature.

If you’re working with high-volatility assets in your portfolio, then you can invest in physical gold to balance it.

Protection Against Inflation

Gold’s price tends to increase when the dollar’s value declines, so it’s an excellent hedge against inflation. Even if the price of gold doesn’t increase that much, it tends to maintain its value throughout the years, which translates into consistent and great returns.

Are There Any Disadvantages to Gold IRA Rollovers?

Unfortunately, a gold IRA isn’t perfect. Here are a few disadvantages you should keep in mind before starting the rollover process:

Contribution Limits

You’ll have annual contribution limits regardless of the type of gold IRA account you get. As of today, traditional and Roth IRAs have a limit of $6,500 or $7,500 if you’re over 50 years old.

On the other hand, SEP IRAs have a limit of 25% of your self-employment earnings or $66,000, whichever is higher.

Withdrawal Penalties

Unless you have a Roth IRA, you can get penalties if you try to make any withdrawals before you reach 59 ½ years of age. These penalties include taxation on your withdrawals and a 10% penalty.

Some people solve this problem by buying physical gold, as they can sell it for cash.

Fees and No Dividends

You may get charged different fees depending on the gold IRA companies you choose, so you can expect reduced earnings.

On the other hand, precious metals IRAs don’t distribute a company’s dividends, unlike stocks, so you will miss this passive income source.

Limited Returns

Gold is popular for its ability to remain stable even in hard financial times. However, precious metals don’t typically yield high returns.

You can address this by diversifying your portfolio with different assets, though.

How to Start Your Rollover Process – Gold IRA Rollover Guide

Before we begin with the rollover guide, we must point out that a gold IRA rollover isn’t the same as a transfer.

A gold IRA transfer will move your funds from your existing custodian to another one. These transfers aren’t taxable, there aren’t any annual limits, and you will not get any early withdrawal penalties.

Rollovers, on the other hand, involve the person getting their funds from their account into their new gold IRA (there’s no direct transfer between third parties). If the person doesn’t make the transaction within 60 days, they can get taxed on their distributed funds.

Now that you know the difference between the two terms, let’s get started on how to make your gold IRA rollover as easily as possible:

First, you must talk to your IRA account’s current administrator or custodian. Tell them you want to start a transfer or a rollover (depending on what you want).

Your administrator will give you some paperwork to fill out, which includes information for your new gold IRA, the amount of money you want to transfer, etc.

If you chose a transfer, all you need to do is wait until the administrator transfers the funds from your current IRA to your gold IRA. On the other hand, if you chose a rollover, the administrator will give you the funds you requested. You’ll have 60 days from the date you received the money to deposit it into your new gold IRA.

Remember that if you miss the deadline, you’ll get a 10% penalty.

Once your funds are in your gold IRA, you can start buying precious metals. Keep in mind that if you want to get the tax advantages from these IRAs, you must only purchase assets approved by the IRS.

Finally, once you’ve decided what you want to buy, you can talk to your custodian and ask them to process your order. They’ll use the available funds and buy what you wanted. Depending on the company you decided to work with, you’ll get your assets shipped to a safe depository.

You may also keep your gold at home, although it’s not recommended and may result in penalties from the IRS.

Which Companies Should You Consider for Your Gold IRA Account?

There are many companies you can consider for your gold investments today. Some of them include:

  • Augusta Precious Metals
  • Noble Gold
  • American Hartford Gold
  • Goldco
  • Birch Gold Group
  • And more

I created this page featuring companies offering gold IRA services so you can hand pick the ones that fit your investing criteria.

You can’t go blindly and choose any company for your gold IRA investments, though. First, you must check online if the company you’re interested in has good reviews. Many companies pay for advertising online, so you’ll see them on top-rated review websites; this doesn’t mean they’re good for you, though.

On the other hand, make sure the company you work with has reasonable fees according to your budget.

Conclusion – Start Your Gold IRA Investments Today!

In summary, gold IRA accounts are an excellent option for those looking to diversify their retirement funds and fight inflation. As long as you have eligible IRA accounts, gold IRA rollovers should be easy enough to do.

Make sure you follow all the steps on this page, choose a reputable custodian and gold IRA company, and diversify your portfolio with some of the strongest assets on the market!

Other options for Gold IRA Rollover:

 

Tim Schmidt

About 

Tim Schmidt is an Entrepreneur who has covered retirement investing since 2012. He started IRA Investing to share his expertise in using his Self-Directed IRA for alternative investments. His views on retirement investing have been highlighted in USA Today, Business Insider, Tech Times, and more. He invested with Goldco.