How to Convert IRA to Physical Gold
Some people believe that investing in gold is not a good idea, especially for retirement funds. The reason is mostly because the price of gold does not significantly increase over time. But if you choose the right company and do it correctly, gold investment can help you to reach your retirement goals. For you who have an Individual Retirement Arrangement (IRA), you can convert it into gold. Below are the steps to convert IRA to physical gold.
Check Your Retirement Account
The first step you have to do is determining what type of retirement account you have. A traditional IRA allows its participants to make pre-tax contributions to the accounts. Also, you may have to pay taxes on withdrawals from the traditional IRA. On the other hand, Roth IRA have after-tax contributions. When converting to a gold IRA, you want to make sure that your new account type matches your previous account.
Find a Reputable Gold IRA Company
The next step to convert IRA to physical gold is to look for and find a reputable company that offers gold IRAs for customers to transfer their retirement funds into. You are highly suggested to choose a retirement company with a good reputation and good customer service team.
Several gold IRA companies list their rankings with the BBB or Better Business Bureau along with their years of experience. These companies will also let their customers know how many assets they manage as well as the number of transactions they have handled. It is better to compare the rates and fees with other retirement companies to make sure you have the best deal.
For additional transparency, gold IRA custodians should be upfront with their fees and costs. Some gold IRA custodians probably have a minimum amount of investment required to open an account. At some point, account holders perhaps need to liquidate some of their gold assets. Therefore, potential customers should also check out their buy back rates too.
Buy backs make it possible for customers to sell their gold assets directly to a gold IRA company. This is surely better than waiting for a buyer on the market. This is also a great idea to check the educational resources available to customers.
Open a Gold IRA Account
Once you have chosen a custodian, you need to open a precious metals IRA account. Some custodians offer online registration with their forms while others may ask customers to mail in a paper application. Depending on the custodian you select, the customer service team can help you to open an account.
However, they will not likely provide any suggestions or advice due to IRS regulations. At this stage, you have to make sure that you are opening the right account. IRA to IRA transfer requires a transfer, meaning that a Roth IRA can be transferred to a Roth IRA and a traditional IRA to a traditional IRA.
Buy the Gold
Before buying the gold, you need to complete the transfer or indirect rollover first. Then, you can start to invest in your new gold IRA account. Make sure you only purchase IRA eligible gold. Otherwise, you have to pay taxes and penalties from the IRS.