As you grow older, you may decide to roll over your IRA into a different type of account. For example, if you are nearing retirement age and have a traditional IRA, you can convert it into a Roth IRA. Alternatively, if you have an old 401(k) or other defined contribution plan that is no longer available to you, you can roll that money into an IRA.
You can also roll over your IRA from one financial institution to another without incurring taxes or penalties. However, there are some important rules that must be followed when rolling over your gold IRA account.
IRA Rollovers Explained
When you roll over an IRA account, the transaction does not change the funds in any way. They simply move from one account at one bank or brokerage firm to another account at another bank or brokerage firm. The objective is to keep all of your investments together in one place so that they can be managed with ease.
When you roll over your IRA, you must also keep the funds in an IRA account. For example, if you have a 401(k) plan at work and want to roll it into an IRA, your employer cannot simply issue a check to cover the conversion. You will need to open another IRA account and transfer the funds into that account before they can be invested as part of an investment portfolio. If all this sounds confusing, you can refer to this guide to gold IRA rollovers to get a better idea of how it works. In short, though, if you are thinking about rolling over your 401(k) into a gold IRA, be sure to talk with your financial advisor first so that he or she can help you through the process.
Rolling Over Your Gold IRA Account
The first step in rolling over your gold IRA is selecting where you want to move the funds. You have three options: You can take possession of physical gold bullion (gold bars or coins) and store them yourself, or have the custodian store them for you. You can also transfer your gold IRA funds into a new type of account called a self-directed IRA, which gives you more control over your investments.
If you have a gold IRA, rolling it over is a simple process. All you need to do is contact your current custodian and request that they transfer the funds into an account with another company. You can then choose where those assets go (physical gold or a self-directed IRA).