A Gold IRA rollover involves transferring assets from a current retirement account into a self-directed IRA that allows physical precious metals. Typical source accounts include 401(k)s, traditional and Roth IRAs, 403(b)s, and other eligible retirement plans.
A Gold IRA rollover starts with opening a self-directed IRA that is approved to hold precious metals. Once the account is established, funds from the existing retirement account are transferred into the new Gold IRA. These funds are then used to purchase IRS-approved metals such as gold, silver, platinum, or palladium.
There are two primary rollover methods: direct and indirect. A direct rollover involves custodian-to-custodian transfer of funds. best gold IRA rollover . This approach is often favored due to its simplicity and reduced tax risk. 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.