Many people think that a gold rollover IRA is challenging to understand. However, with our easy-to-follow guide, you will know all the relevant information about a gold rollover IRA in a couple of minutes!
Required Minimum Distributions in a traditional gold IRA
Like a standard IRA, a gold IRA can be a traditional IRA or a Roth IRA. If it is traditional, you will have to make some required minimum distributions from it, i.e., mandatory withdrawals, when you hit retirement age.
The products you can invest in
In a gold IRA, you cannot buy gold jewelry and be done with it! There are specific purity standards that the products must comply with, and the dealer can let you know which gold products are most popular.
Don’t handle the gold yourself
In a gold rollover IRA, you are not allowed to possess the gold physically. The metal is bought from a supplier on your behalf by a custodian. You could end up incurring penalties if you become too involved!
Only use IRS approved depositories
To keep the gold safe, you must keep it in a depository. However, this cannot be any safety deposit box and needs to be IRS-approved.
Find an IRS approved custodian
One of the critical things about a gold rollover IRA is that you cannot handle the metals yourself. Before opening this account, you have to find a custodian, such as a bank or trust authorized by the IRS to handle gold IRAs. They are the ones who will purchase and manage the materials.
Choose the metals you want to invest in
Even though it is called a gold IRA, you can invest in products made of other precious metals as well. Silver is a trendy alternative to gold, but you can also invest in palladium and platinum products. You can check more details through gold IRA rollover reviews. These metals also offer much of the same advantages in terms of price and stability that gold provides.
Picking the correct dealer
One of the things you should know about a gold IRA is that you are responsible for buying the products yourself. This does not mean that the gold coins come to your home, but it does mean that your custodian is not responsible for finding the products for you. You will have to find dealers who sell IRS-approved gold products.
This is your responsibility, so be sure to find a trustworthy supplier. However, if you cannot seem to make a choice, you can ask your custodian to refer you to a dealer since they usually have contacts in the industry.
A direct or indirect rollover
When you are using a gold rollover IRA, you need to decide whether it will be a direct rollover (where your 401(k) money is electronically transferred to the IRA) or an indirect one (where you withdraw the funds and put them in the account yourself). These methods have different rules, so be prepared for them beforehand.
Our 8 points were designed to tell you to need to know about gold IRAs. While these retirement accounts can be a bit pricey because of the fees that accompany them, they are an excellent option to diversify your retirement investment portfolio.