About Silver IRAs and Rollovers
Silver IRAs work much like your present traditional form of IRA. The main difference lies in the fact that with this form of Silver IRA, you are able to keep tangible silver bars and coins inside of it rather than the usual paper assets you have in your traditional IRA. An important point is that when you roll over your IRA, this new physical silver will be stored in a secure depository that is IRS-approved until you attain the age of retirement or request a distribution. When you do take distributions, the silver can either be sold and a check sent to you, or you can have the actual silver itself sent to you. You can also sell the silver within the account at any point without having to take a distribution.
Once the rollover is complete and the new Silver IRA is up and running, you will receive statements as with your old IRA. The difference is that now the statements will show you are holding actual silver bars and coins which are stored in the IRS-approved depository instead of stocks, bonds, mutual funds, or paper silver investments. Rolling over to the Silver IRA incurs no taxes and is completely approved by the IRS. The beauty of this Silver IRA is that it allows you to hold silver coins and bars and gives you control over the investments in the account because it is set up as a Self-Directed IRA. You are in the drivers’ seat so long as you follow the rules and regulations as specified by the IRS.
What Accounts Can Be Rolled Over to A Silver IRA?
There are actually a number of different IRA accounts that can be rolled over to a Silver IRA. Such rollovers are easiest for owners of Traditional, Simple, SEP, and Roth IRAs. There are other types of retirement accounts that can also be eligible for such a rollover. These include 401ks, 457 Deferred Compensation Plans, 403bs, TIAA CREF, Thrift Savings Plans, and Beneficiary IRAs.
Steps Involved With Rolling Over To Silver IRAs
• First Step -You begin the process of rolling over by opening a new Silver IRA account. To do this, you first contact a Silver IRA administrator. It is important to open such an account with a company that specifically handles these kinds of IRAs. After turning in the application, the delay is typically only several days for the account to be established and ready to fund.
• Second Step – You next get in touch with your old IRA account administrator and request that they help you to roll over part or all of your assets and funds to the new Silver IRA account.
• Third Step – After your assets and funds from the old IRA account have come in and been credited in the new Silver IRA, you can start looking over and considering what you have with the Silver IRA administrator. Chances are good that you will be holding paper assets of various kinds that you may decide to sell. You may be holding silver mining stocks, ETFs, or mutual funds that you want to liquidate and exchange for tangible silver coins and bars. The good news is that the IRA administrator takes care of all of the ordering and receiving processes for you so that you do not have to go buy and make shipping arrangements for the silver bullion on your own.
Silver IRA Custodian Questions
There are a few considerations you should investigate when you are choosing your Silver IRA custodian to roll over to, such as:
• The Administrator’s Costs -The costs are more than just dollar amounts. There are different types of fees that you want to beware. Some of the custodians charge scaling fees which go up as your account value is higher and increases. Try to go with an administrator and custodian which only charges flat rate fees.
• The Administrator’s Silver Products Available – the best situation with a custodian is to find one which carries an extensive range of the silver coins and bars that the IRAs are allowed to contain.
• The Administrator’s Reputation – As with any type of investment company, you want to be sure about the reputation of the Silver IRA administrator you are contemplating. A few good places to check online for ratings are Better Business Bureau, Business Consumer Alliance, and TrustLink.
Silver IRA Storage Considerations
Storage is an important topic to consider when you are picking out the administrator to which you will rollover our old IRA account. Many investors hope that they can keep their silver bullion in a safe at home or in their local safe deposit box, but the IRS forbids this. Your silver has to be stored in a vault or depository that is run by a third party. You have control over which storage center the metals are vaulted in, assuming that the chosen facility is IRS-approved. With most Silver IRA custodians, they will offer you a choice of one or several such approved depositories with which they already work and whom can highly recommend.
A second concern is in what manner your silver will be stored at the vault. Depositories are offering two methods of storage for these silver IRA metals. The preferred method is known as segregated storage. This storage involves your silver bullion coins and bars being kept completely isolated from other customers’ silver in their vaults. It is likely kept in a safety deposit box configuration with its own box number. You can walk into the depository in this type of storage and request to see your individual silver. Specific serial numbers and certificates on your silver bullion would be given with your IRA information via your custodian in this type of storage.
The alternate storage version is called Non-segregated or allocated storage. This storage involves all such customers of the depository having their holdings lumped together in large vaults. None of the precise bars or coins are specifically yours, but your tangible silver holdings are there in the total inventory. The reason that you might not like this form of storage is if the depository were to fail, it could possibly tie up your silver holdings while the bankruptcy was sorted out. If metals were missing, part of yours might be among those gone. A number of vaults that offer allocated storage will also give you the possibility of having segregated storage instead if you request it, but it will likely cost more.