A Gold IRA rollover refers to shifting retirement funds from an existing account into a self-directed IRA designed to hold physical precious metals. Common source accounts include 401(k)s, traditional IRAs, Roth IRAs, 403(b)s, and other qualified retirement plans.
A Gold IRA rollover starts with opening a self-directed IRA that is approved to hold precious metals. Following account setup, funds are moved from the original retirement account into the newly created Gold IRA. The transferred funds are used to acquire IRS-approved precious metals including gold, silver, platinum, and palladium.
There are two primary rollover methods: direct and indirect. With a direct rollover, assets are transferred directly between custodians without the investor handling the funds. This approach is often favored due to its simplicity and reduced tax risk. best gold IRA rollover . An indirect rollover occurs when funds are paid to the investor, who must deposit them into the Gold IRA within 60 days.
Gold IRA rollovers are commonly chosen to add diversification and inflation protection. By adding physical assets to a retirement portfolio, investors may reduce exposure to market volatility.
Knowing how Gold IRA rollovers work is critical for maintaining compliance and protecting long-term retirement savings.