How to Set Up a Gold IRA in a Reliable Company

Everyone wants to enjoy their retirement; hence, they start to plan for it financially as soon as they can. While there are several retirement options to choose from, gold IRAs are becoming more popular by the day. People want to leverage the security that this precious metal offers, and who can blame them? 

After all, historically, gold has been known to retain its value even in times of political and economic upheaval. You can read this to learn more about the history of this precious metal. 

If you just want to get aboard this train, then you are most likely wondering how to begin. Luckily for you, we are here to guide you through this whole process. In this brief yet informative read, we will discuss the 4 steps you need to do to set up your gold IRA. 

Step 1: Selecting a Reliable IRA Company

For you to start this journey, the first step to take is to find a reliable IRA company. The company you choose will be handling everything from setting up the account, transaction of funds, buying the precious metals, and ensuring the asset is properly stored. 

Sometimes, the company may double up as your custodian. In which case, they will be in charge of IRS compliance and the account’s paperwork. They would be handling almost everything concerning your investment. So, you do not want to select a company that has not been tested and approved. 

Since this investment plan is gaining so much popularity lately, the companies available for you to pick from are so many. Each company comes with its unique services, fees, and how they attend to their customers. Hence, you need to be careful and ensure you know all you can about a company before you choose to set up your IRA with them. 

Some factors you need to consider before you decide on a company include qualification (like insurance, registrations, and licenses), service flexibility, transparency, and track record. 

You can also read reviews like – Best gold IRA companies: Top 3 precious metals IRA reviews and comparison to help you make an informed decision. 

Once you have concluded on a company, the next step will be to fill the paperwork required to open the IRA. An I.D issued by the state like a driver’s license will be required. Also, if you want to fund the IRA from an existing retirement account, then you will need details of the account. 

Step 2: Funding the IRA

The next step after opening the account is funding. This has to be done so that you can now buy your assets. 

When it comes to funding your account, you have three options: 

1. Transfer

You can decide to transfer the funds directly from a current retirement account to the gold IRA. You would need to fill a transfer form which the administration of the existing account will provide. 

Alternatively, your precious metal IRA custodian can contact the administrator for you and initiate the transfer. A direct transfer may use up to 5 days before the transaction gets complete. Also, they are penalty and tax-free.

This and the fact that they are less stressful are the reasons most investors prefer this option. 

2. Cash Contribution

You may decide to fund your precious metal IRA with a cash contribution. This can take the form of a wire transfer, cash, and even a check. The procedure is as easy as putting money in your savings account or funding any other type of investment account. 

Note that your bank may charge a fee if you decide on wiring the funds. 

3. Rollover 

With a rollover, a distribution can be removed from one retirement account then deposited or rolled into another. 

The process of getting this done involves withdrawing the funds in the old account then directly depositing it into the new account. When it is put this way, it appears quite straightforward, but, this option has some dos and don’ts you do not want to ignore. 

For instance, you have to deposit the funds in the new IRA within sixty days of withdrawing them from the old account. If you don’t do this and you are 59 and half years old or below, then you may be charged a 10 percent penalty fee. 

You can visit https://www.irs.gov/ to learn more about IRS rules concerning rollovers. 

Also, make sure you ask for instructions from the administrator of your current account so that you do not break any of the requirements. 

Step 3: Purchasing the Metals

The final step would be to buy the precious metals. You can’t just buy any metal as there are some IRS regulations metals held in IRAs have to meet. The company should be able to advise you on which metal you can or can’t get in the account. 

The procedure for buying the assets may sometimes vary based on companies. Sometimes, some precious metal IRA firms sell these assets in which case, you can easily buy from them directly. 

While some firms do not sell, so you would need to get a dealer and ask your account custodian to purchase the asset. In cases like this, the custodian may be able to recommend reputable dealers to you. 

If they don’t or you do not like the ones recommended to you, then you can go searching for one yourself. However, make sure you properly research the dealer to protect yourself from getting swindled.

Once the assets are purchased, they will be transferred to an IRS-approved depository for storage. This is because holding gold bought with IRA funds yourself is considered illegal.

Conclusion

In this read, we have discussed the steps you will take if you want to set up a gold individual retirement account.