You may already be aware of the fact that there is an abundance of gold IRA custodians that offer this service. You have the option of contacting your current custodian or choosing to use a self-directed IRA custodian. Using a self-directed IRA can have its advantages. Let’s take a look at how this alternative can benefit you and your retirement. gold ira custodians
You can transfer any of your existing Traditional IRA’s, Roth IRA, SEP IRA, or Self-Directed IRA into a gold-rollover plan. If you’re over the age of 59.5 and still have an account through your employer, you can also qualify for an automatic rollover to a gold IRA from your employer. If you’re an American citizen and a resident of the United States, you have the option of contributing to an IRA of your choice with a maximum contribution of funds that you’re allowed to contribute to your other traditional IRA accounts.
Self-Directed IRA’s don’t have the mandatory minimum distributions as do Traditional IRAs. Your custodian determines the amount of your distribution based on your income and your age on the date of your last withdrawal. You must withdraw funds for your own use within the time period specified in your agreement with the custodian. If you choose to roll over your account, your distributions will be rolled over and become available to you again. This is different than a traditional IRA that allows you to make rollovers only after a set date. When you make a rollover to a self-directed IRA account, you’re not usually taxed on these distributions.
If you decide to roll over a traditional IRA into a gold IRA you must meet certain requirements. You must open an account at a brokerage firm that offers gold as one of the products you can purchase. You also must meet the rollover requirements. If you meet both of these requirements, the transaction is completed and your gold rollover is converted into cash within the IRA account.
Some IRAs offer additional benefits such as allowing you to move funds between your traditional and Roth IRA account. In order to take advantage of this service you may need to increase the size of your account. When you increase your account you’ll also increase the amount of eligible income for contributions to the Roth. Your custodian will provide more information on the benefits of making the rollover to the gold IRA.
Many people who make the decision to move their funds into a gold IRA consider their assets to be safer than those in other retirement accounts. They don’t worry about having to make the dreaded annual required minimum distributions (RMDs). Typically, if you have five or more distribution units, you’ll be required to withdraw all of your units and distribute the remaining value of your portfolio as well. Those who choose to take advantage of traditional IRAs may not face this problem. This is because the average IRA allows individuals to move funds between retirement accounts without having to make a withdrawal.
When it comes to investing in gold, you need to understand the risk associated with it. There are some risks involved with investments in precious metals including gold. Gold IRA custodians don’t typically offer insurance or other special guarantees to protect your transactions. Custodians will work with you to find the best possible investment for your particular situation. You’ll want to do your research so you can avoid common pitfalls such as investing with institutions that only deal in gold bullion or coins, dealing directly with brokers or middlemen who buy and sell futures, and buying “naked” contracts where you pay a fee for your rights to physical gold.
Choosing to invest in gold through a gold IRA may seem like an attractive option, but it is important to take some time to learn about the process. Through a good custodian you’ll be working with someone who understands how the gold market works and can provide sound financial advice. Before you make any sizable transactions, be sure to fully understand any fees or restrictions that may apply. When you are finished working with your gold IRA custodian, you’ll be able to take advantage of tax-deferred growth and take advantage of growing your retirement account effectively and efficiently.