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GoldUpdated Jul 12, 2024
5-min read
Expert Approved
Expert Approved
This article has been reviewed by a
Certified Financial Planner™ for accuracy.
Written byAly Yale
Written byAly Yale
Expertise:Home equity, mortgages, real estate
Aly Yale is a freelance writer with more than a decade of experience covering real estate and personal finance topics.
Learn more about Aly Yale
Reviewed byNatalie Slagle, CFP®
Reviewed byNatalie Slagle, CFP®
Expertise:Tax planning, employer benefit maximization, investments, education planning for young children, stock options, equitable household money management
Natalie Slagle, CFP®, is a founding partner and financial advisor at Fyooz Financial Planning LLC. Natalie’s experience includes banking, tax preparation, financial planning, and wealth management. She currently resides in Portland, Oregon, with her husband and beloved small dog.
Learn more about Natalie Slagle, CFP®
If you don’t have extra cash to make new investments, you can fund a new gold IRA with money from other retirement accounts, including 401(k)s, Roth IRAs, and more.
This guide will walk you through how this process works.
Table of ContentsSkip to Section
- What does it mean to do an IRA transfer?
- How to transfer your IRA into a gold IRA
- Are there gold IRA transfer fees?
- More about gold IRA transfers
What does it mean to do an IRA transfer?
You can fund your gold IRA from other retirement accounts in two ways: through a rollover or a transfer.
1. Rollover
In a rollover, your IRA custodian will give you the money you wish to withdraw. You then have 60 days to deposit these funds into your new gold IRA account.
- If you miss this 60-day deadline, you will owe a 10% penalty on the withdrawal if you’re under 59.5 years of age.
- This method involves handling the funds yourself, which can be more flexible but also carries the risk of missing the deadline.
If you’re interested in a rollover, check out our guide to initiating a gold IRA rollover.
2. Transfer
In a transfer, your current IRA custodian sends the money right to your gold IRA custodian without you handling the funds.
- Because you take no cash out of the account, you don’t risk missing the 60-day window, and no penalties are involved.
- Many investors prefer this method as it involves less hassle and reduces the risk of errors.
By understanding the differences, you can choose the method that best suits your needs and comfort level.
How to transfer your IRA into a gold IRA
Here’s a step-by-step guide to transferring your IRA into a gold IRA:
- Open a gold IRA. The first step is to open a gold IRA, also known as a self-directed IRA, which allows you to hold precious metals. Choose a company that specializes in these accounts. We’ve compiled a list of top gold IRA firms to help you get started.
- Contact your current IRA administrator. Inform the administrator of your IRA that you want to initiate a transfer to a gold IRA.
- Fill out the required paperwork. Complete the necessary forms, providing information about your new gold IRA account and specifying the amount you want to transfer.
- Wait for the transfer. Your current IRA administrator will wire the funds to your new gold IRA account. Once the funds are transferred, you can start purchasing gold and other eligible precious metals.
- Select your gold. Choose which coins and metals you want to buy. Only certain coins and metals are eligible for a gold IRA.
- Direct your gold IRA custodian to purchases metals. Instruct your gold IRA custodian to use the funds in your account to buy the chosen metals.
- Secure storage. Your metals will be shipped to a secure depository for safekeeping. While some companies might suggest that you can store your gold at home, you can’t. This could expose you to IRS penalties. Be cautious of anyone who claims this is a viable option.
- Monitor your investment. Keep an eye on your account statements and track the performance of your investments. Your gold IRA company may offer tools to assist you with this.
By following these steps, you can successfully transfer your IRA into a gold IRA and begin investing in precious metals.
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How does a gold IRA work?
Are there any gold IRA transfer fees?
No IRS or other government fees are associated with a gold IRA transfer. However, your account administrator may charge a fee, which varies depending on the company’s policies.
If you’re considering transferring funds into a gold IRA, it’s best to contact your current IRA custodian to inquire about any potential fees or charges you might incur.
Are there tax implications from a gold IRA transfer?
A gold IRA transfer protects you from the potential penalties associated with rollovers. With a rollover, if you don’t deposit the funds within 60 days and are not of retirement age, you could face a 10% penalty. You’re limited to one rollover per year.
Opting for a transfer sends the funds directly to your gold IRA custodian, eliminating the risk of fees or penalties. Because no money is withdrawn and given to you, the IRS doesn’t tax the transfer.
Why transfer an IRA to a gold IRA?
Transferring your IRA funds into a new gold IRA can offer several significant benefits:
- Portfolio diversification. Diversifying your investments reduces risk. Gold and silver provide an excellent way to diversify from other investments you might have, ultimately lowering your portfolio’s overall risk.
- Protection from inflation. When the value of the U.S. dollar drops, your purchasing power decreases too. Gold investments can protect against this loss because gold’s value generally keeps pace with or outperforms the dollar.
- Economic security. If the economy or stock market declines, having investments in gold could help mitigate your losses. Gold often remains stable or even appreciates in value during economic downturns.
- Growth potential. Gold has a historical trend of appreciating over time. This growth potential means that including gold in your portfolio could increase its overall value.
If you’re uncertain whether transferring funds to a gold IRA is the right decision, consult your financial planner. They can help you determine the best strategy for your unique financial goals and situation.
Where can I open a gold IRA account?
To open your gold IRA account, you’ll need to choose a gold IRA company. Experience, service, and costs can vary between companies, so it’s crucial to shop around and compare your options before making a decision. Our guide to the best gold IRA companies can help you get started.
