Convert IRA to Physical Gold

How do I Convert my IRA to Physical Gold?

convert ira to physical gold

Convert IRA to physical gold. You may be asking yourself, How do I convert my IRA to Physical Gold? If so, then you have come to the right place! In this article, we will explore the process and steps of converting an existing IRA to Physical Gold, as well as what kind of metal you should invest in for your retirement fund. We also provide some tips and advice on how you can save money on taxes by moving your retirement fund into precious metals, so read on to find out more!

What is a Precious Metal IRA? Convert IRA to Physical Gold

A precious metal Individual Retirement Account (IRA) is a self-directed retirement account allowing individuals tax advantages, flexibility and control of their savings. The difference between a traditional individual retirement account (IRA) and a precious metal IRA is that precious metals IRAs allow investors to diversify their portfolio with gold, silver or platinum. Investors can also open a gold or silver IRA and store it at home or put it in safekeeping with third party storage services.

If you’re thinking about buying precious metals, it’s important to understand how they compare with other investment options. Precious metals are not a substitute for stocks, bonds or mutual funds. If your goal is long-term growth or income, consider other financial options. If a drop in price causes you to sell your metal holdings and buy back at a higher price, then you haven’t really lost money—you’ve just missed an opportunity. There may be other tax advantages associated with holding physical gold in an IRA versus selling it outright, so be sure to consult a professional before making any decisions.

If you’re thinking about converting your existing IRA or 401(k) into precious metals, you need to understand how IRAs work. Basically, if you withdraw funds from a traditional IRA or 401(k), you must pay taxes on those assets. However, some types of gold and silver IRAs allow investors to avoid that tax bill by simply holding onto their assets until they reach retirement age—at which point they can start withdrawing without paying taxes.

To convert your existing IRA or 401(k) into precious metals, you first need to transfer those assets from your current account—which means you’ll likely have to pay taxes on those assets. Once they’re in a self-directed precious metal IRA, you can sell any physical gold or silver assets and store them at home or with a third party.

The process of converting your existing IRA or 401(k) into precious metals is fairly straightforward. First, contact a precious metal company and open an account. Then you can start selling any holdings in your current account and moving them into your new precious metal IRA account. At that point, you can buy gold or silver assets with your savings—which will be stored securely until you’re ready to make a withdrawal.

convert ira to physical gold

How to Start – Convert IRA to Physical Gold

When you’re ready to convert your existing retirement account into gold, you’ll need a self-directed gold IRA company. Contact an insurance agent specializing in precious metals IRAs and ask for recommendations. Alternatively, search online for self-directed gold IRAs or something similar; many companies will come up. Once you have a few potential companies in mind, check out their websites and talk with them by phone.

Ideally, your chosen gold IRA company will already have a working relationship with an independent custodian that is on the approved list of most major banks. Banks have their own regulations for holding precious metals in IRAs, and finding one with whom your gold IRA company can work is likely to be more trouble than it’s worth.

In order to open an account and have your retirement funds transferred into it, you’ll need a minimum of $5,000. Once you’ve provided all of your information and signed any necessary documents, your company will convert funds from an existing 401k or traditional IRA into physical gold.

In many cases, a self-directed gold IRA company can also help you purchase and store other precious metals including silver, platinum, and palladium. The physical storage of precious metals may be held by your custodian or with a third party storage provider of your choice.

Self-directed gold IRAs are for more than just investors who want their retirement funds in precious metals. If you’re looking for a simple way to diversify your portfolio and hedge against inflation, an IRA may be an ideal investment vehicle. To learn more about investing in physical gold, contact a professional today.

Pros and Cons of Converting an IRA to Precious Metals

Now that you’ve looked at all of your options, you may be wondering if converting your traditional IRA to precious metals is right for you. There are a few pros and cons worth considering, but one thing is clear: If you want an easy way to diversify your retirement portfolio, it’s an ideal choice.

The only question now is which type of investment option will work best for you.
Making The Switch From Traditional To Roth: You may want to choose a conversion when you’re planning on drawing down funds from your traditional IRA or 401(k) instead of saving toward retirement—otherwise, Uncle Sam will stick his hand in there first. This can make sense if you have high-interest debt or need money for something else; don’t forget to use our retirement calculator before making any decisions!

If you have an existing traditional IRA, it’s possible to move your money into a Roth. You can work with a financial advisor or go through your institution directly; either way, you’ll need to fill out IRS Form 8606 for any year in which you make such a conversion.

Once you’ve made your decision, you’ll have a better idea of whether or not converting your traditional IRA to precious metals is right for you. It can be an ideal way to get access to retirement funds without paying taxes.

What Are Other Benefits Of Investing In A Precious Metal IRA? – Convert IRA to Physical Gold

Convert IRA to Physical Gold

What are some other benefits of investing in a precious metal investment, such as gold or silver, with an existing Individual Retirement Account (IRA)? Let’s take a look at how it works.

The process of converting an existing Individual Retirement Account (IRA) into physical gold or silver is not a complicated one. It’s done through a rollover, which means your assets will be transferred from one account, in order to be converted into another.

Because you are rolling over your existing account, and not opening a new one, you don’t have to go through any of the formalities involved in creating an IRA or setting up annual contributions. All that is required is for you to tell your financial institution how much gold or silver you want transferred into your precious metal account. A custodian will then take care of transferring those assets from your traditional retirement account.

There is no downside to opening a precious metal Individual Retirement Account (IRA) as you will be able to easily transfer back into your existing account at any time. So even if you simply want it as an option for when you retire, there is no reason not to get started now and roll over your assets into a new gold or silver IRA.

Are you interested in opening a gold or silver Individual Retirement Account (IRA)? Get started by asking one of our recommended providers how it works. They will make sure you understand how it all works, and help you every step of the way with your rollover process. You can also ask them about any other precious metal related questions—they have an expert on staff waiting to help!

What About Taxes?

One of the first things people will ask you about physical gold IRAs is, Aren’t you worried about taxes? If you own bullion or coins and make a profit by selling them, that money is taxed. However, it’s important to know that you can take an IRA distribution for your physical gold and avoid being taxed if you follow Internal Revenue Service (IRS) guidelines.

There are three different scenarios in which you can take a physical gold distribution and avoid taxation:

  1. you’re over 59 1⁄2 years old
  2. The distribution is due to disability
  3. It’s a rollover or other tax-free transfer, subject to certain restrictions.

In addition, if you own gold coins as part of your retirement account and sell them for less than $75 per coin within two years of purchasing them, there won’t be any capital gains taxes either.

Once you convert your retirement account, you’ll need to take distributions periodically. You can decide how often you want to receive them (for example, monthly or quarterly), but if you start taking payments before age 59 1⁄2 and don’t follow IRS guidelines, your account will be penalized and taxes will be applied.

However, in most cases you won’t need to worry about taxes until your account is liquidated or converted into a different asset. Furthermore, if you have an existing Traditional IRA or Roth IRA and want to add gold or silver coins, you don’t need to pay taxes on that either. You can simply take out cash from your existing account and deposit it into your new gold/silver-backed account.

As long as you follow IRS guidelines, there are no income taxes on physical gold or silver. The price of bullion is typically much higher than spot prices, but that doesn’t mean you’ll be taxed at a higher rate. In fact, most people won’t be taxed at all when they liquidate their account and receive payment for their gold coins or bullion.


Our Top Company Recommendations

Our #1 Company Pick, Goldco

If you have an existing Individual Retirement Account (IRA), and want to convert it into physical gold, you can roll over your assets from a financial institution into a Precious Metals account. You will still be able to enjoy tax-deferred growth of your investment, but in order for your gold holdings to qualify as an asset in your self-directed retirement account, they must be physically delivered.

In addition, you can invest in silver and other precious metals products with your IRA. Goldco has been a trusted leader in the gold space since 2006, and has the highest level of customer service ratings with all the major ratings services including: Trustlink, BBB, Trustpilot, and more.

Just click on the banner below, request info, and they will get in touch with you shortly!

gold ira rollover

0ur #2 Company Pick: Augusta Precious Metals

Augusta Precious Metals makes buying physical gold and silver bullion a breeze with its buy-and-store program. Customers simply open an IRA or Self-Directed 401(k) account, fill out some paperwork, transfer their existing retirement account over, buy a storage plan and—done!—they’re set up with a physical precious metals portfolio they can call their own. Prices on investment-grade gold and silver bullion are always competitive, too.

After deciding that you want a physical precious metals portfolio, then figuring out how and where to buy physical gold and silver is probably next on your list. Fortunately, Augusta Precious Metals makes buying gold easy. Click the banner below, request info, and one of Augusta’s helpful representative will be in touch with you promptly!

Call Augusta at: (800) 953-3538