Very similar to a rollover, a gold IRA transfer adds precious metals to your retirement portfolio in a tax efficient manner.
Rollovers are not the only way to go for the gold. Quite commonly the more appropriate way to add gold to your IRA is via IRA transfers.
A direct transfer of funds from one account to another sounds simple, however providers don’t always work well with each other and as such pre-approval is required for the transfer.
Another important difference to keep in mind between a transfer and a rollover are the fees and tax implications.
When is a Transfer appropriate?
You opt for a transfer if your existing retirement plan doesn’t allow for it to hold physical precious metals.
Despite several years having passed since the IRS relaxed it’s rules on holding investment-grade bullion in retirement accounts, there are still a quite a few trustees who won’t – or simply can’t – accept physical gold, thus the need for a transfer.
In a nutshell, your gold IRA transfer involves three simple steps…
Gold IRA Transfer Step #1: Select a custodian / trustee to accept the transfer.
If you don’t already have a suitable IRA, either Goldco Precious Metals or Birch Gold Group (they are both A+ BBB members) can help you as they are both metal dealers and custodians, and are well qualified to help you set up a transfer to an IRA tailored to physical bullion.
To begin the transfer process you would simply fill in an appropriate form provided by your specialist – this can be a paper form or be filled online.
Gold IRA Transfer Step #2: The trustee-to-trustee transfer
If you’re taking a distribution from an existing IRA, you simply ask the financial institution holding your current IRA to make the payment transfer directly from your IRA to another IRA or to a retirement plan, transferring the funds directly from one account to the other. Key Point: no taxes are withheld from this transfer.
Gold IRA Transfer Step #3: Buying precious metals
If you set up your account directly through specialist IRA gold dealers, such as Goldco Precious Metals or Birch Gold Group, you now choose the precious metals you’d like to buy through your gold IRA.
Specialist IRA gold dealers can help advise the best metals to buy based on your needs and will watch the market prices locking the trade for you at a rate you’re happy with and placing your order, before your trustee wires the funds to the dealer.
Secure delivery sees your metals into your trustees vault at a chosen depository and that’s you – you’ve completed your transfer!
Transfers are exempt from the one rollover per year rule
From January 1, 2015 onward, you are only allowed one rollover from one IRA to another in any 12-month period, regardless of how many IRAs you own. Gold IRA Transfers are not subject to this rule.
This hassle will quite likely see a reduction in gold IRA rollovers and an increase in gold IRA transfers.