The Gold IRA Rollover – In Easy Steps

A gold IRA rollover is a tax efficient way to add precious metals to your retirement portfolio

gold ira rules - taxation mistakesYou carry out a gold IRA rollover if your existing retirement plan is unable to contain physical precious metals

When the IRS relaxed rules on bullion in retirement funds, precious metals immediately became an essential part of many retirement accounts. However even today a number of accounts can’t or won’t accept physical gold, hence the need for a rollover.

In essence a gold IRA rollover consists of three simple stages

 
gold ira rollover step oneGold IRA Rollover Step #1: Select a custodian / trustee to accept your rollover.

Our directory lists 56 gold IRA specialists, some of which are metals dealers and some custodians, but any one of them will be able to set up an IRA tailored to allow tax-free investment in physical bullion. Popular specialists include Regal Assets and Money Metals (both category winners at 2015 Bullion Dealer of the Year)

You fill in a simple form to create an account – which will be active in 2-5 days, sometimes quicker.

 
gold ira rollover step twoGold IRA Rollover Step #2: The rollover of funds

You now take a distribution from your existing retirement plan. You can ask your plan administrator to make the payment directly into your newly set up gold IRA. Alternatively the administrator will issue your distribution in the form of a check made payable to your new account. Either way there are no taxes withheld from your rollover.

 
gold ira rollover step threeGold IRA Rollover Step #3: Buying precious metals

Now the fun part! If you set up your account directly through Regal, Money Metals – or any of our 56 listed specialists you now select the precious metals you want to buy for your gold IRA.

Specialist IRA gold dealers will help advise the best metals to buy and lock the prices at a rate you’re happy with – and then 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 a gold IRA rollover!

The Gold IRA Rollover – Expert in Three Minutes

 

Why use a rollover?

Ordinarily*, a distribution (withdrawal of funds) from a retirement account is a taxable event. The amount of the distribution is added to your income for that year and taxed at your standard rate.

By rolling over your distribution from one plan to another or carrying out a direct trustee-to-trustee transfer, you generally don’t pay any tax on it until you finally withdraw it from the new plan.

The IRA rollover allows more of your money to continue growing thanks to being tax-deferred.

*(other than qualified Roth distributions and any amount already taxed)

Remember the one rollover per year rule

From January 1, 2015, you are only permitted to make one rollover from one IRA to another IRA in any 12-month period, regardless of the number of IRAs you own.

There are exemptions from this rule, that the one-per year limit does not apply to:

  • rollovers from traditional IRAs to Roth IRAs (conversions)
  • trustee-to-trustee transfers to another IRA
  • IRA-to-plan rollovers
  • plan-to-IRA rollovers
  • plan-to-plan rollovers

You must include in gross income any previously untaxed amounts distributed from an IRA if you made an IRA-to-IRA rollover (other than above exceptions) in the preceding 12 months. You may also be subject to a 10% early withdrawal tax on the amount you include in gross income if you are aged less than 59.5.

Full details of the One Rollover Per Year rules on the IRS site.

What IRAs can be rolled over?

Roth IRA Trad. IRA Simple IRA SEP-IRA
Roth IRA YES 1 NO NO NO
Trad. IRA YES 2 YES 1 NO YES 1
Simple IRA YES 2
(after 2 yrs)
YES 1
(after 2 yrs)
YES 1 YES 1
(after 2 yrs)
SEP-IRA YES 2 YES 1 NO YES 1
*1: Only one rollover in 12 months      *2: Must include in income

So you know about Gold IRA Rollovers – where to next?

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