How Do I Rollover My IRA to Gold or Silver?

By Jonah Ellingson


If you’re looking for a way to protect your retirement savings from the volatility of the stock market, you may be wondering how to rollover your IRA to gold or silver.

Fortunately, it’s not too difficult to do.

In this article, we’ll explain the process and give you some tips for getting started.

We’ll also discuss the pros and cons of investing in precious metals IRAs, so that you can make an informed decision about what’s right for you.

What is an IRA Rollover or Transfer?

An IRA rollover or transfer is simply the process of moving money from one retirement account to another.

For example, you may have a 401(k) through your employer and want to roll it over into an IRA so that you have more control over how your money is invested.

Or, you may already have an IRA but want to move your assets into a gold IRA for diversification purposes.

The process is relatively straightforward – here’s how to get started…

How to Rollover Your Traditional IRA in to a Gold or Silver IRA

an investment graph from an IRA fund

When you rollover your IRA to gold or silver, you’re essentially converting your traditional IRA into a precious metals IRA.

There are a few different ways to do this, but the most common is to transfer funds from your traditional IRA into a new account that is designated as a precious metals IRA.

You can also rollover your 401k into a precious metals IRA, but we’ll focus on IRAs in this article.

Finding a Trusted Company

The process of rolling over your IRA to gold or silver is relatively simple.

First, you’ll need to find a reputable custodian who specializes in precious metals IRAs.

Once you’ve found a custodian, you’ll open a new account with them and transfer funds. The custodian will then use those funds to purchase gold or silver on your behalf.

There are a few things to keep in mind when you’re choosing a custodian.

  • Reputation Matters

First, make sure that they’re reputable and have experience handling precious metals IRAs.

You can check online reviews or ask people you know who have invested in gold or silver for recommendations.

  • Compare Fees

Second, compare fees. Some custodians may charge higher fees than others, so it’s important to shop around and find the best deal. Third, make sure that the custodian offers storage options that meet your needs.

Some custodians will store the metals for you, while others will allow you to store them yourself. Choose the option that makes the most sense for you.

Opening an Account and Transfering Funds

Once you’ve chosen a custodian, the next step is to open a new account with them and transfer funds.

The process of transferring funds will vary depending on the custodian, but it’s typically not too difficult.

You may have to fill out some paperwork, but the custodian will usually take care of everything else.

What Are The Fees for Tranfersing an IRA to Gold or Silver?

There are a few different fees that you may encounter when rolling over your IRA to gold or silver.

First, you may have to pay an account setup fee. This is usually a one-time fee charged by the custodian.

Second, you’ll likely have to pay shipping and handling fees when the metals are delivered to your storage facility.

And third, you may have to pay annual storage fees if you’re not storing the metals yourself.

These fees can vary depending on the custodian and type of account you choose, so be sure to compare options before making a decision.

Do You Have to Pay Taxes When Rolling 0ver an IRA?

a graphic of a tax form chasing a woman in a business suit

Generally speaking, you will not have to pay taxes when rolling over your IRA to gold or silver.

However, there are a few exceptions.

For example, if you withdraw money from your traditional IRA and then roll it over into a precious metals IRA within 60 days, you may be subject to taxes and penalties.

It’s always best to consult with a tax advisor before making any decisions about rolling over your IRA.

What Are the Pros and Cons of Investing in Gold or Silver?

Now that you know how to rollover your traditional IRA into a gold or silver IRA, let’s take a look at the pros and cons of investing in precious metals.

Pros:

  • Diversification

Precious metals can add diversification to your investment portfolio.

  • Hedge against inflation

Gold and silver tend to hold their value well in times of inflation.

  • Potentially higher returns

Over the long term, gold and silver have outperformed stocks and other asset classes and are often considered a good hedge against inflation.

Cons:

  • Volatile prices

The price of gold and silver can be volatile in the short term.

  • Not guaranteed by the government

Unlike traditional IRAs, precious metals IRAs are not guaranteed by the government.

  • Storage and insurance costs

If you choose to store the metals yourself, you’ll need to pay for storage and insurance.

What Are The Pros and Cons of Traditional IRAs?

Now that we’ve looked at the pros and cons of investing in gold or silver, let’s take a look at the pros and cons of traditional IRAs.

Pros:

  • Tax-deferred growth

With a traditional IRA, you can defer taxes on the money that you contribute.

  • Tax deduction

You may be able to deduct your contributions from your taxable income.

  • Government guarantee

Traditional IRAs are guaranteed by the government up to $250,000.

Cons:

  • Limited investment options

With a traditional IRA, you’re limited to investing in stocks, bonds, and other financial instruments.

  • Taxes

When you withdraw money from a traditional IRA, you’ll have to pay taxes on the withdrawals.

  • Early withdrawal penalties

If you withdraw money from a traditional IRA before age 59 ½, you may have to pay taxes and penalties.

Physical Gold IRA Rollover vs. “Paper Gold” Rollover

When you rollover your IRA to gold or silver, you have the choice of investing in physical metals or “paper gold”.

Paper gold refers to ETFs and other financial instruments that track the price of gold.

Physical gold refers to actual coins and bars of metal that are stored in a custodian’s vault or in your own storage facility.

Each option has its own set of pros and cons that you’ll need to consider before making a decision.

Pros and Cons of Owning Physical Gold

Pros:

  • You own the metal

With physical gold, you actually own the metal. This means that you have full control over it and can do what you want with it.

  • No counterparty risk

When you own physical gold, there is no counterparty risk. This means that there is no risk of the financial institution defaulting on their promise to pay you.

Cons:

  • Storage costs

If you choose to store the gold yourself, you’ll have to pay for storage and insurance.

  • Potential for theft

Physical gold can be stolen if it’s not properly stored or insured.

Pros and Cons of Investing in “Paper” Gold

Pros:

  • Easier to buy and sell

Paper gold is much easier to buy and sell than physical gold.

  • Lower fees

The fees associated with paper gold are usually lower than the fees associated with physical gold.

Cons:

  • Counterparty risk

When you invest in paper gold, you’re taking on counterparty risk. This means that there is a risk that the financial institution will default on their promise to pay you.

  • No control over the metal

With paper gold, you don’t actually own the metal. This means that you have no control over what happens to it.

Where Can I Open a Gold or Silver IRA Account?

Now that you know the pros and cons of traditional IRAs and precious metals IRAs, you may be wondering where you can open a gold or silver IRA account.

The best place to start is with a custodian that specializes in precious metals IRAs.

Fortunately, there are a number of excellent companies that can help make the process smooth and easy for you.

Our top Gold IRA Companies for 2022 include:

  • GoldCo
  • Augusta Precious Metals
  • RA Wealth Partners
  • Birch Gold

Summary: Is a Regular IRA or a Precious Metals IRA Best For You?

So, what’s the best choice for you?

It depends on your individual circumstances. If you’re looking for diversification, potential tax benefits, and a government guarantee, a traditional IRA may be the best choice for you.

But if you’re looking for potentially higher returns and are willing to stomach some short-term volatility, gold or silver IRAs may be the better option.

The decision is ultimately up to you.

Just be sure to do your research before making any decisions about rolling over your IRA, and consult with your accountant or certified financial planner.

Sources

Jonah Ellingson

About the author

Jonah has worked as a professional journalist for more than a decade. He carries a B.A. in broadcast journalism and a Masters in Education from the University of Montana. His primary focus is on gold and silver IRAs, as well as all news and trending topics related to gold and silver investing. When he's not busy researching or writing, he can usually be found on a golf course.

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