Gold IRA Rollover Guide

Gold IRA Rollover Guide

Although some learned investors do not believe in safeguarding wealth by investing in gold, the fact that gold remains the haven or the inflation hedge everybody needs when the financial markets are rough and uncertain cannot be overappreciated. Owing to that incredible ability to withstand a rocky economic climate, most people with investing goals earmark a portion of their wealth to gold, offsetting potential losses in the stock market and other paper-based investments.

You can invest in gold in the physical form or paper/digital gold. The term “physical gold” refers to bullion coins and bars. Gold jewelry doesn’t fall under that category as it’s more a fashion item and less an investment vehicle. The name “paper gold” refers to shares of gold mining companies, gold ETFs, gold funds, and other forms of investment that don’t entail physical gold possession or amount to actual gold ownership.

Although gold investments do not appreciate like traditional investments, gold is highly reliable. The asset will certainly not plummet in value like cryptocurrency or fiat money. Considering market volatility and the stability that gold offers, several investors are now looking to turn a portion of their existing investments or wealth into gold bullion bars or gold coins, particularly IRA holders or those investing for retirement.

If you are among them and would like to learn more, continue reading. We lay out all there’s to converting an IRA into gold. In this article, we discuss the following:

• What is an IRA?
• What is a gold IRA (there are differences between the two)
• How to create a gold IRA and an introduction to the stakeholders
• Performing a gold IRA rollover and more
• The best gold IRA companies around

Whether you are familiar with IRAs or are a complete noob, we recommend you read the entire piece and not jump directly to the “gold IRA rollover” section to have a holistic understanding of the topic.

What is an IRA ? The Different Types

An IRA (individual retirement account) is a retirement savings account with tax advantages. There are different IRA types—primarily traditional IRA, Roth IRA, Simple IRA, and SEP IRA. The contribution limits, benefits, criteria, etc., vary with each class. Let’s gloss over the types in brief.

A traditional IRA is the most common individual retirement account type. The account owner contributes to the IRA with pre-tax dollars for tax-deferred growth. The IRS (Internal Revenue Service) doesn’t impose dividend income or capital gains taxes on the money in the account until withdrawal.

For example, if $3,000 is set aside for the IRA, you can claim the sum as a deduction on your income tax return. The tax levied upon withdrawal is based on your (IRA owner) existing income tax slab. Individuals can set up an IRA via a financial advisor or a broker. You can contribute up to $6,000 or your taxable income for the year, whichever is lower. If you are 50 years or older, you may add up to $7,000.

Withdrawals are not encouraged before you turn 59.5 years old. Any distributions made prior will be subject to penalties. You can put distributions on hold after crossing the minimum withdrawal age. But once you turn 72, you must withdraw a minimum amount from the account annually as part of the RMD (required minimum distribution) rule.

A Roth IRA works like a traditional IRA, but the only exception is that the contributions are after-tax dollars. The disbursement, however, is tax-free, unlike a traditional IRA. Roth IRAs have no RMD requirements too. A Roth IRA is best suited for those who think the tax rates will be higher at the withdrawal time than when contributing to the account. 

SIMPLE IRA (Savings Incentive Match Plan for Employees) and SEP IRA (simplified employee pension IRA) are employer-created for employees. Non-salaried professionals are not eligible to open a SEP or SIMPLE IRA. However, sole proprietors or self-employed folks can. Businesses generally use the SIMPLE IRA plan with 100 or lesser employees.

Kindly note that a 401(k) is not an IRA. It is an employee and employer-sponsored retirement plan, also with tax advantages. On the other hand, an IRA is contributed to purely by an individual. The account-holding employee will allocate a certain percentage of their salary to a 401(k) plan. Employers match that number but up to a specific limit. Like with an IRA, withdrawals or distributions from a 401(k) are taxed at the rate prevalent during retirement. A 401(k) is only one of the various employer-sponsored retirement funds—more on others later.

What is a Gold IRA?

Gold IRAs are self-directed IRAs (SDIRAs) that allow owning or investing in gold bullion and gold coins under an IRA arrangement. A regular IRA doesn’t facilitate physical gold investments. It, however, permits assets with gold exposure, such as gold stocks, gold ETFs (exchange-traded funds), etc. Gold IRA rules are identical to those of a conventional IRA, including tax benefits, withdrawal rules, and contribution limits. The IRS, however, requires additional record-keeping and tax reporting requirements for gold IRAs.

As mentioned earlier, you cannot include gold jewelry in a gold IRA. Below are a few other things IRA gold must conform to:

• The gold should be 99.5% pure (at least).
• If dealing with bullion coins, those should be in a mint, uncirculated state.
• The gold bullion should have been made by an accredited manufacturer, assayer, or refiner.
• Proof coins should be flawless, in their original packaging, and accompanied by a certificate of authenticity.

Some of the gold coins eligible for an IRA include the American Gold Eagle, American Gold Buffalo, Austrian Gold Vienna Philharmonic, Canadian Maple Leaf, Australian Gold Nugget/Kangaroo, and Chinese Gold Panda, among others. Some popular gold coins do not qualify for an IRA, such as the Sovereign (British coins) and the South African Krugerrand, since their gold composition is not high enough. If you buy the wrong type of gold for an IRA, it will be subject to taxes.

As mentioned earlier, a gold IRA is similar to a regular IRA arrangement. However, some costs are unique to a gold IRA. Those are:

• The custodian could charge you an upfront account setup fee, usually less than $100and, at times, more. Some custodians may discount the cost if you deposit a relatively large amount, like around $30,000 or more, or based on what the custodian construes as a significant sum.
• Then there’s the annual maintenance fee to cover account administration and management expenses, such as paperwork handling. The price is usually a few hundred dollars, but it’s also based on how extensive the portfolio is. Some custodians set a threshold and charge depending on whether the account value exceeds or stays under that ceiling.
• The custodian will also charge you wire transfer and cash-out fees. The wire fee is for sending or receiving money through bank transfers. Cash-out fees are charged at the time of account closure.
• The precious metals dealer will charge a seller fee, essentially a markup over spot gold prices. The cost could vary based on the kind of gold purchased and market conditions. In addition, the precious metals seller may charge transaction handling fees and commissions.
• The depository charges storage fees for providing a secure and safe IRS-approved physical storage facility for your gold. The price could be a flat sum or a percentage of the stored gold’s value. Also, insurance fees go hand in hand with the storage fee, which could be a flat rate or a percentage.

Kindly note that some custodians will be willing to waive some fees or reduce their percentage cuts during the first couple of years, mainly if you have a massive account balance and are committed to a long-term arrangement.

Setting Up a Gold IRA: Custodian, Supplier, and Depository

To set up a gold IRA, you’d need to associate with a custodian, precious metals supplier, and a depository. The three work together to roll and manage your gold IRA.

The gold IRA custodian is the primary caretaker of your account. The account manager isn’t your regular brokerage firm, as traditional businesses do not offer gold IRA services. They usually are specialists who only administrate gold IRAs. They help manage tax reporting and necessary paperwork for the gold transactions, meeting the IRS’s retirement savings account requisites.

The precious metals or gold supplier provides you with the physical gold eligible for a self-directed IRA setup. Since you cannot store the physical gold held under an IRA at your home, you’d also need a depository to keep the gold purchased safely and securely. The metals supplier will transfer your purchased gold to the repository upon custodian instructions, who will, in turn, require your formal authorization.

You’ll typically not get to touch or even see the gold you own in an IRA. The IRS prohibits physical possession of the gold bought under an IRA arrangement. That implies you cannot store the gold in a private, not-IRS-approved property, irrespective of how secure the place is. Taking physical possession of the gold is not a crime. But if you violate the rules, the IRS will penalize you for the act and impose taxes on the gold purchased. In specific scenarios, the IRS may shutter your gold IRA account.

You are free to choose a custodian of your liking. Do so after meticulous research and comparing. You can also select the supplier and depository of the precious metal. But if you need help, the custodian shall be more than happy to oblige. It’s recommended to align with custodian-recommended businesses as they are likely to have worked in the past and currently working, which will bode well for your account. The gold IRA creation process could entail a lot of paperwork, which your gold IRA custodian will be more than happy to assist with.

Be Wary of Shady Service Providers

Choose reliable and trustworthy custodians for your gold IRA. Take your time analyzing different companies. The custodian fees must be reasonable and have solid ratings and reviews. The company should have been in business for a decade at least and not offer “too good to be true” deals or offer free gold. If you see their ads on TV, particularly celebrity endorsements, try to stay away, as you’re likely paying a premium for the marketing.

When looking for reviews and ratings online, ensure those aren’t sponsored by the particular company or are on a third-party, trustworthy platform. Look if their names appear in articles on independent websites about the best or top gold IRA rollover companies. Make sure the write-ups aren’t paid or affiliate pieces.

A trustworthy custodian lays the proper foundation for a gold IRA plan. Only if you can trust them will you be able to rest assured of the custodian’s recommendations and the decisions they take on your behalf. 

What is a Gold IRA Rollover?

An IRA rollover is a distribution of funds between two retirement plans tax-free. The rollover can happen between two traditional IRAs or a regular IRA and a self-directed IRA (SDIRA). A gold IRA, for example, is an SDIRA. The rollover could be partial or complete. You may execute a partial rollover if you are more than 59.5 years old. 

A gold IRA rollover helps convert a portion or your entire investment portfolio or retirement account into gold (bullion bars, gold coins). The source account could be any of the IRAs mentioned above or other SDIRAs that entail investing in other precious metals, limited partnerships, real estate, tax lien certificates, private placements, and other alternative investments.

Employee-sponsored plans are also eligible for gold IRA rollovers—which include 401(k)s, 403(b)s, 457(b)s, and thrift savings plans (TSPs). 403(b)s are retirement accounts for employees of organizations exempt from taxes. The 457(b) plan is for local and state government employees (firefighters, police officers, etc.). A TSP is for federal government employees, such as the military.

You can move funds from an employer-sponsored plan to a gold IRA or similar arrangement only if changing jobs or having retired. No such rules apply to individual retirement accounts. Also, you cannot process a rollover from the same retirement account more than once a year. Similarly, the gold IRA account can receive rollover funds only one time within one year from the date of your rollover.

Executing a Gold IRA Rollover: Direct and Indirect Rollover

After creating your gold IRA account, it’s time to move the funds to the self-directed account. The fund transfer or rollover between your existing retirement account and a gold IRA could happen directly or indirectly.

A direct transfer of funds is transferring money directly from one account to another without any intermediary. Submit a funds transfer request form with the gold IRA application to the custodian. The form will mention details about your current IRA, such as your name on the account, account number, custodian name, transfer amount, etc.

The direct transfer process can take up to two weeks, starting with application submission and ending with the funds reaching the gold IRA account. You may expedite the process by faxing the transfer request documents and wiring the funds instead of sending a check.

The indirect transfer method entails liquidating all or a specific portion of your existing IRA and using that money to buy gold eligible for a gold IRA. The “indirect” nature means you withdraw the funds to your bank account before using the cash to buy IRA gold or invest in any other IRS-approved retirement plan.

The withdrawn money may remain in your personal account for up to 60 days. If the proceeds stay in your bank account any longer, the IRS will impose taxes on the withdrawn sum, and you’ll also be penalized for premature withdrawal if you are less than 59.5 years old. In certain situations, however, or when you missed the closing date due to unforeseen or unavoidable circumstances, the IRS could waive the tax and fine or extend the two-month deadline.

If transferring the funds directly or indirectly from a 401(k) or any other employer-sponsored retirement account to a gold IRA, your employer will send you a check or your gold IRA custodian as your representative. There usually isn’t much paperwork. Your employer will talk to you or your custodian verbally. A few internal rollover documents must be filled out and duly submitted if it's a government-sponsored account. The rollover process should take approximately two weeks.

For many people, a direct transfer is more convenient as there’s no scope for human error—for instance, there is no possibility of keeping the money in a personal account for more than two months. Another positive is the “direct” nature of the transfer or cutting out the middlemen, which is you.

The Best Gold IRA rollover Companies in 2022

What is the best gold IRA rollover to invest in?

Now that you understand how to set up a gold IRA and roll over funds into the account let us briefly look at the companies worth setting up a gold IRA with. The following represents the cream of the crop. 

(Note: Gold IRA setup fees, administration costs, storage services, and other specifics are discussed in our dedicated reviews of companies.)

1. Goldco

Goldco is perhaps the most wholesome gold IRA company on this list. Although there are too many variables to crown a business as the “best gold IRA rollver company,” Goldco comes closest to winning that honor.

Ranked #1 of 68

4.9 / 5

Read full review

Visit Goldco today

Request your free Gold IRA Guide

Benefits

• Specializes in precious metal IRAs

• Been in business for 15 years

• Very high ratings across the board

• Excellent customer service

• Fantastic customer education materials

Disadvantages

• Minimum starting investment a bit higher than others

• Cryptocurrency IRA only offered through a subsidiary

From selling precious metals to helping set up an IRA and processing a rollover, Goldco is more than willing to oblige. You cannot overlook that it features in almost every best gold IRA companies list on the web and invariably grabs the first spot. It’s, therefore, no surprise to see it occupy the same numero uno position here.

Set up in 2006, Goldco has more experience handling a precious metals IRA account or retirement savings accounts than most other companies. When contemplating rolling over a traditional or Roth IRA, 401(k), TSP (thrift savings plan), or any other tax-benefited savings retirement account to a gold IRA, Goldco is invariably the company most familiar with gold IRA transfer rules think of almost instantly. The company has A+ (BBB) and AAA (BCA) ratings.   

Goldco’s forte is dealing with IRA-approved silver and gold coins. It associates with mints across the globe to procure some of the highest quality, prestigious physical gold bullion, such as the American Gold Eagle coin. Goldco clients get detailed information (eBooks, videos, etc.) that help them set up a gold IRA suitable for their goals. The company takes immense pride in its business model and long-term relationships with its patrons over the years. 

Read full review of Goldco

Gold IRA Fees
The required minimum purchase at Goldco to start a gold IRA is $25,000. Goldco’s preferred Custodian charges a flat annual account service fee which includes a one-time IRA account set-up fee of $50, as well as a $30 wire fee. Annual maintenance is $100, and storage is $150 for segregated storage or $100 for non-segregated storage.

Fees for gold storage and custodianship can vary depending on the company you select to handle these services (required by the IRS, as all IRA assets must be managed by a custodian). Depending on the Custodian, storage fees can range from $10 to $60 per month, or as a percentage of assets, from 0.35% to 1% annually. Goldco does not charge any storage fees for cash transactions over $25,000.

Goldco.com

Ready to Protect Your Retirement Savings with Goldco?

• $25,000

  Minimum investment

• 10% Back in Silver Coins for new clients

  Special

• First Year Fees Waived for New Clients

  Bonus

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Get your free Gold kit

2. Augusta Precious Metals

Augusta Precious Metals is a large, established gold IRA firm. It’s an award-winning, highly rated, and extensively user-reviewed gold IRA rollover provider.

Ranked #2 of 68

4.8 / 5

Read full review

Visit Augusta today

Protect and Secure Your Retirement Savings Now!

Benefits

• 401(k) & IRA rollover into gold or silver IRA

• Setting up an account is quick and easy.

• 1000s of top ratings & reviews, A+ rating from the BBB

• Unique, one-on-one web conference—must-watch!

• Confirmation of quality from customer & paid ambassador Joe Montana

• Fantastic education materials, customer service & no-pressure sales

• “Protectors” of industry, warnings of some company’s questionable tactics

Disadvantages

• Requires a minimum of $50,000 USD in your savings account

Short description

Having been in the business since 2012, the company sells precious metals, helps set up gold IRA accounts, and educates its patrons about precious metals assets, among other things. The company’s video-based materials consisting of analyses from experts are particularly notable, stressing its central focus on educating clients.

Although based in Beverly Hills, California, the company ships precious metals to depositories across the U.S. in neatly and safely packed boxes. The shipment is free of cost and fully insured. Also, the gold IRA rollover rules and process are pretty straightforward at Augusta. The popular financial and investment education website Investopedia has lauded Augusta Precious Metals for its transparent pricing.

The most significant benefit of dealing with APM is its low-cost, upfront fee structure. “Low-cost” is a marketing term most gold IRA companies employ. However, when asked to divulge all potential costs a client may have to bear, the gold IRA company may not be forthcoming as doing so would reveal that their services are not cost-efficient. Augusta is low cost and is quite public about it—which we entirely endorse, and the company is, therefore, featured on our list.

Read full review of Augusta Precious Metals

Get lifetime customer support with Augusta Precious Metals

Augusta Precious Metals - Diversify your savings with a Precious Metals IRA

• $50,000

  Minimum investment

• Lifetime customer support

  Special

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Request Your Free Precious Metals IRA Guide Here

3. American Hartford Gold

American Hartford Gold is a more-than-a-decade-old gold IRA company with several accolades and praise to its credit.

Ranked #3 of 68

4.6 / 5

Read full review

Visit Goldco today

Request your free Gold IRA Guide

Benefits

• Specializes in Gold and Silver IRAs

• Buyback Commitment

• Endorsed by Bill O'Reilly

• Excellent customer service

• Complete disclosure of costs before final sale

• Free Shipping

Disadvantages

• Minimum starting investment a bit higher than others

• Cryptocurrency IRA only offered through a subsidiary

Short description

The company’s quite renowned for offering its buyers a wide range of precious metals. Its product library consists of bullion bars and coins in all significant precious metals, including platinum and palladium. However, the company doesn’t offer platinum or palladium IRA services.

Several physical gold bullion bars and coins are procured from reputed, IRS-acknowledged mints worldwide, including Canada, Australia, and Switzerland. To expand on the company’s accolades, AHG has continuously received the highest ratings from BBB and BCA. Its Trustpilot reviews brim with satisfied and happy clients. American Hartford’s customer service is excellent. The staff is attentive, and the interactions with them are pretty smooth.

American Hartford Gold’s prices for their precious metals are close to market prices. The company’s margins are pretty slim. The focus is less on sales profits and more on customer acquisition. And the strategy has been the same for years. The prices, however, are not shown on the site. Get in touch with the company for specific prices. The reasonable costs also reflect in the account setup, administration fees, and shipping expenses.

Read full review of American Harford Gold

American Hartford Gold’s prices for their precious metals are close to market prices. The company’s margins are pretty slim.

American Hartford Gold - Diversify your savings with a Gold and Silver IRA

• $10,000

  Minimum investment

• $10,000 in free silver

  Special

• Free shipping

  Bonus

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Request Your Free 2022 Gold Kit

4. Noble Gold

Noble Gold is a precious metals IRA company known for its competitive prices on its gold and silver coins. And like other gold IRA firms, it excels in shipping too.

Ranked #5 of 68

4.3 / 5

Read full review of Noble Gold

Visit Noble Gold

Protect and Secure Your Retirement Savings Now!

Benefits

• Wide variety of investment products

• Low minimum investments

• Access to rare and collectable coins

• Free educational materials

• Premium asset protection through the secure gold depository

Disadvantages

• Assets are only stored in North America

Short description

Noble Gold is fifth on our list, but that doesn’t make it any lesser than others, particularly in terms of “customer service.” There’s not much differentiation one can exhibit selling physical precious metals. But with “customer support,” businesses can stand out—which these companies certainly do.

Noble Gold is a relatively new business, launched in 2016. But within its short existence, the company has made significant strides, leaving people and us more impressed than businesses that came before it. Reputable business rating platforms, such as Better Business Bureau, echo that sentiment with their high ratings for the company. The company’s extensive supplier and partner network are also noteworthy.

Noble Gold has experienced and skilled consultants on board who help clients understand the IRA account creation process and walk them through it from start to finish. The company also offers a free investment kit that allows their onboarding patrons with everything they need to know about their self-directed IRA account. And if you’re unsure what gold bars and silver coins to invest in, Noble Gold will help with that too.

Read full review of Noble Gold

Noble Gold offers rare and collectable coins you can invest in.

Noble Gold - Protect your retirement today

• $10,000

  Minimum investment

• Offers rare and collectable coins

  Special

• First-year fees waived for qualifying IRAs

  Bonus

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Get Your Free Precious Metals IRA Guide

5. Birch Gold Group

Launched in 2003, Birch Gold Group is one of the oldest names in the gold IRA business. Birch sells precious metals for IRA or private investments.

Ranked #4 of 68

4.6 / 5

Read full review of Birch Gold Group

Visit Birch Gold

Protect and Secure Your Retirement Savings Now!

Benefits

• Wide range of products and services

• Excellent communications with its clients

• Outstanding recognition among their clients, other professionals, and investment companies

• Excellent customer service education initiatives

Disadvantages

• Their website mentions a set-up fee and annual fees, there was no mention of the exact amount

Short description

The IRA account creation process with the firm is simple and quick, with support staff walking you through the procedure. The team is very hands-on—you cannot buy gold or silver without their engagement. You will be assigned an account representative to handle all your transaction requests and queries.

Headquartered in Burbank, California, Birch Gold Group offers gold IRA services requiring a minimum $10,000 investment. You may set up a fresh self-directed IRA or rollover an existing retirement account to the gold retirement savings arrangement, such as a 401(k) to gold IRA. Depository assistance and safe, reliable shipping are some of the company’s standard offerings. The company has partnerships with some extremely reliable and secure storage properties, such as Brink’s Global Services and Delaware Depository.

Besides gold and silver, BGG lets you invest in platinum and palladium within a self-directed IRA setup. That’s relatively rare, as most companies (including those on this list) focus only on gold and silver, not other precious metals. Birch Gold Group also has a buy-back program—another sign of a trustworthy precious metals IRA company. The buy-back initiative means you have a potential buyer ready any time you decide to sell your precious metal.

Read full review of Birch Gold Group

Birch Gold Group mission is to remove the uncertainty and hesitation from precious metals investment, allowing prospective clients to make wise decisions about expanding their portfolios.

Birch Gold Group - Diversify your savings with precious metals

• $10,000

  Minimum investment

• First-year fees waived for qualifying IRAs

  Special

Visit Birch Gold

Discover how gold and silver act as excellent hedges against inflation

Top Government Insiders Warn: The Largest Financial Meltdown In History

Conclusion: Gold IRA rollover

You do not need a gold IRA to invest in physical gold. And if you only want exposure to gold prices and don’t care about owning the yellow metal, there are many investing options. But there are certain benefits to gold IRAs. Most notably, they strike a proper balance between owning physical gold and not bearing the costs of that proprietorship.

If you’ve owned gold in the metal, you should be privy to the costs and hassles attached to owning the metal. It’s, therefore, not surprising to see gold IRAs gaining more recognition and gold IRA rollovers becoming increasingly common who want to put some money in physical gold for investment purposes only.

If you’re considering rolling over your retirement account funds to a gold IRA, pore over the above information, tips, and suggestions before getting started. If gold IRA is an entirely new space for you, we recommend learning more about the topic and getting familiar with the various stakeholders first. Click on this link for a complete guide to some of the best gold IRA companies. And please feel free to read our other articles on the subject.