Many people already have a regular IRA account as a part of their investment planning for retirement. You may not be aware that you are able to hold gold in your retirement accounts if you have the right type of IRA. Because of the government changing the law with their Taxpayer Relief Act of 1997, you can now hold a better range of investments in your retirement account than ever before. The greatest change for many investors was the government deciding to include gold in these IRA’s. When you switch over to this type of Gold IRA account, this is called a gold IRA rollover.
Why Would Investors Want to Rollover to a Gold IRA?
Rolling over to a gold IRA allows investors to hold much more than gold. Because such an account is also a self directed IRA account, you are able to add in a wide variety of investments, such as real estate holdings, business opportunities, franchises, and most importantly gold. This means that you can take the destiny of your retirement account firmly in your own hands to acquire investments that provide better diversification and protection against stock market declines. By owning physical tangible gold that this account permits, such as Canadian Maple Leafs and American Eagles, you also can be assured of protecting your retirement portfolio against inflation that affects all of your other dollar-denominated investments like stocks, bonds, mutual funds, and ETFs you would typically be holding in a traditional IRA.
What Is Involved With Transferring Your Retirement Accounts To a Gold IRA Rollover?
• Step One – To get this account open you have to start by getting in touch with an administrator who works with Gold IRAs. Be sure that this company is able to handle these types of IRAs. It usually only take a few days once you turn your application in to get the account opened and available for funding.
• Step Two – At this point, you have to contact the administrator of your traditional IRA and ask them to help you to begin rolling over your funds and assets from your already existing IRA account over to the new gold one.
• Step Three – Once the funds and investments from your original IRA have been received and credited, it is time to look at those and analyze them with your new Gold IRA administrator. Likely there will be paper gold assets such as ETFs or gold mining stocks that you want to sell and change into real physical gold bars and coins. The administrator will handle all of the orders for you, taking away the steps of having to go out and purchase your physical gold bullion yourself.
Storage Options to Consider With the Rollover
When you are choosing which custodian you will rollover your IRA to, there are a few things you need to consider regarding storage. Even though you may love the idea of keeping your gold coins and bullion at home or in the safe in your garage, the IRS who makes the rules will not let you do this. It will be stored in a secure third party depository or vault. You get to choose the storage center where it is kept, so long as it is approved by the IRS. In practice, your Gold IRA custodian will have one or more depositories that they work with and recommend from which you can pick.
Another important consideration is how your metals will be stored there. These depositories offer two principle types of storage for your gold. Segregated storage is the type of vaulting where your individual gold coins and bullions are kept separate from everyone else’s gold at the depository. In this type of storage, you can actually go to the vault and see your particular gold pieces. Any serial numbers on gold bars will also be provided to you in your account information with most custodians.
Allocated or non-segregated storage is the type where all of the depository customers’ gold is kept together in one or more large vaults. This means that you do not have any exact coins or bars that are precisely yours, but your physical metals are there with all the rest of them. Some people do not want to have gold that is not secured in their own vault in case the depository was to go out of business. It is important to check with the depository you are considering to see if they offer segregated storage or only allocated. Many vaults will provide segregated storage upon request, sometimes at a higher fee.
Custodian Points to Consider With the Gold IRA Rollover
Several things to keep in mind when deciding on which custodian you will choose for the rollover are:
• Their Fees – This comes down to more than just how much a custodian will charge you. The types of fees are important as well. Look for custodians who charge flat fees instead of scaling fees which get higher based on the amount of gold holdings that you keep with them.
• Their Products Offered – ideally you would want a custodian that offers a full range of the gold bars and coins which are approved to go in the IRA.
• Their Reputation – There are several good places to look at the reputation of the custodian you are considering. The Better Business Bureau, TrustLink, and Business Consumer Alliance all offer ratings on the major custodians.
• Their Experience – custodians who have more experience in handling physical gold will benefit your account in a number of ways. They will be able to better advise you on what products to purchase and may be able to manage the transactions faster.
• Their Buyback Offer – some custodians will have a program in place to buy back any gold on the same basis that they sold it to you originally. This is something to ask about upfront.
• Their Preferred Storage Partners – while you can choose your own storage vault according to the rules, you probably will be going with the ones that are their preferred storage partners. Two of the larger and more commonly used vaults are Brinks and Delaware Depository.