Converting an IRA to Gold: What You Need to Know

The Internal Revenue Service (IRS) only allows investments in precious metals that meet its purity or “fineness” requirements in its gold IRA. Silver ingots or coins must have a minimum purity of 99.9%. The first step in converting an IRA into physical gold is to open a new account. Most conventional IRAs and 401 (k) plans do not allow the purchase of physical gold due to the special requirements involved.Transferring assets from an IRA to a new gold IRA involves no penalties or taxes.

In addition to converting an IRA into physical gold, you may want to convert an existing 401 (k). This typically requires a reinvestment, which the IRS limits to once a year. You can transfer your IRA to a self-directed IRA custodian who does offer gold as an investment.Midas Gold Group works with virtually every self-directed IRA custodian that offers gold and can help you initiate a tax-free transfer or transfer to a new depositary. There is no limit to the number of direct transfers from one IRA to another that you can initiate.

It is usually done through a transfer that is first signed by the account holder and then sent from the receiving depositary to the releasing depositary requesting a partial or full transfer of the funds or assets of the IRA. Many investment firms that offer self-directed IRAs offer a list of depositors they work with, while others may allow you to select a depositary on your own.Unlike investments such as stocks or ETFs, an investment in a gold IRA allows the investor to own a physical asset. Once a customer converts their IRA into a gold IRA, they can make additional contributions to their new gold IRA account. When it comes to fees, a custodian of a gold IRA may charge fees, such as annual management fees, which cover the costs of reporting and other procedures.

After converting your funds into precious metals, Red Rock Secured pays for the shipping transfer to a storage facility.Some gold IRA companies offer webinars and articles to help clients stay informed about investing in precious metals. Transferring your retirement savings from an IRA to precious metals is an easy process if done through a professional dealer. Investors will also learn about the benefits of having a precious metals IRA and the key aspects to consider with gold or silver IRAs. Converting an IRA into a physical gold IRA through a transfer from IRA to IRA also doesn't count toward this contribution limit.Some gold IRA companies will publish their ratings in the Better Business Bureau or BBB along with their years of experience.

It is essential that the investor works with an accredited gold merchant, so that they are instructed to only buy gold eligible for an IRA for their account; otherwise, the IRS could impose taxes and penalties on them. For Roth IRAs, the allowed limit will vary depending on your income limits and may be lower than the maximum contribution amount. The IRS requires that precious metals owned by an IRA be stored in the possession of a trustee or custodian.