Convert IRA to Gold
Thinking of converting your IRA to gold? Before you decide to invest, learn how the entire process works in this guide.
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Converting your IRA to a Gold IRA can be quite tricky. Luckily, you'll learn exactly how this process works through this article.
From avoiding tax penalties to choosing a reliable Gold IRA custodian, read on to make an informed decision.
Can I Use an IRA to Buy Gold?
Generally, you can't invest in gold through a standard IRA that holds securities like stocks and bonds. However, you can opt to open a special self-directed Gold IRA account. You can then transfer a portion (or even all) of your funds to the new Gold IRA and buy physical gold coins or bars.
If the rollover is done correctly, you don't have to pay any unnecessary taxes or penalties on the transfer of funds. And your retirement account continues to grow tax-deferred.
What is a Gold IRA?
A Gold IRA is a type of self-directed IRA that lets you invest in physical gold and other precious metals. Similar to other IRAs, you can enjoy certain tax advantages.
However, there are rules you need to follow. You can only buy IRA-eligible gold (gold coins and bars with a purity of 99.5%
).
You also cannot store your IRA precious metals at home, or you risk paying penalties.[1] You must store your gold in IRS-approved depositories, such as Brink's.
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- Up to $10,000 in free silver for eligible customers
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- Free "insider" info on gold & silver
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So, how exactly do you convert funds from an existing IRA to a Gold IRA? Read on.
2 Ways to Convert IRA to Gold Without Penalty
There are 2 ways you can convert your existing IRA funds to a new Gold IRA without tax penalties:
- Direct rollover
This is when you transfer funds directly from your existing IRA to your Gold IRA account without withdrawing them. This is the easiest, quickest, and most common way.Your Gold IRA provider will help with the rollover paperwork to get the funds sent directly to them.
- Indirect rollover
This is when you withdraw funds from your existing IRA first, so you actually take possession of the money. You must reinvest the funds into your Gold IRA within 60 days to avoid IRS penalties.This method is riskier since you may miss that 60-day window. And you must initiate everything yourself.
In an indirect rollover, 20% is withheld for taxes by your IRA provider. However, to defer taxes, you need to reinvest the full amount in your Gold IRA within 60 days. So, you'll have to cover that 20% out of pocket first, but you'll get it back from the IRS when you file your income tax return later.
Next, learn about the actual rollover process in more detail.
4 Easy Steps to Convert your IRA to Gold
Here are the 4 easy steps to convert your IRA to a Gold IRA through a direct rollover:
- Choose a Gold IRA custodian
Your Gold IRA custodian will assist with opening your self-directed Gold IRA, purchasing IRS-approved gold, managing the account, and handling distributions.Not sure where to start? Some of the most reputable and trusted Gold IRA companies are Augusta Precious Metals, Goldco, and Birch Gold Group.
Gold IRA Company Integrity Checklist
Free report and checklist that helps consumers compare and choose a reputable gold IRA company
Free Gold IRA Kit
- Up to $10,000 in free silver for eligible customers
- Highest buyback price, guaranteed
- Endorsed by Sean Hannity and Chuck Norris
- Fill out the rollover paperwork
You'll need to fill out paperwork to initiate the rollover. But don't worry, your Gold IRA provider will help you with that. They'll even talk to your current IRA Custodian for you, making it as hassle-free for you as possible. - Fund the Gold IRA account
If it's a direct rollover, the funds will go directly to your Gold IRA custodian. They'll take care of getting it to your account.If you choose an indirect rollover, your existing IRA custodian will send a check to you. It'll be your responsibility to deposit the funds in your new Gold IRA within 60 days to avoid taxes or early withdrawal penalties.
- Buy gold
Once your rollover is complete and your account is funded, you can use the cash to buy gold. Your Gold IRA provider will have a variety of IRS-eligible gold coins or bars for you to choose from.They'll also make sure your gold are properly stored in an IRS-approved depository, where they'll stay safe until you're ready to take a distribution.
While it may only take you one business day to open a Gold IRA, the rollover process can take longer. Depending on your current IRA custodian, transferring funds to your Gold IRA account typically takes between 5 and 14 business days.
Are Gold IRA Rollovers Taxed?
There is no tax penalty if you:
- Convert your Traditional IRA to a Traditional Gold IRA.
- Convert your Roth IRA to a Roth Gold IRA.
This is because you are rolling over funds between two accounts that are taxed similarly.
However, if you plan to convert a Traditional IRA to a Roth Gold IRA, you'll need to pay income tax on the amount in the year you do the rollover. But after that, qualified withdrawals from your Gold Roth IRA are tax-free.[2]
Doing an indirect rollover could also have tax implications if you're under 59 1/2. With this option, you actually withdraw the funds from your IRA. The IRS allows you 60 days to deposit the funds into your Gold IRA.[3] If you don't, you'll pay income tax on the amount withdrawn plus a 10% early withdrawal penalty.
Here are some other Gold IRA tax rules to be aware of:
- There is no maximum if you roll over funds from an existing IRA.
- Additional contributions will need to follow the IRS annual limits of $7,000 per year (or $8,000 for 50 or older).[4]
- Withdrawing early before age 59 1/2 has a 10% penalty.
Why Convert IRA to Gold?
Pros:
- Gold can help diversify your portfolio and preserve wealth as you near retirement.
- A Gold IRA offers the same tax advantages as regular IRAs.
- Gold is a tangible asset you can convert to cash.
Free Gold IRA Kit
- Up to $10,000 in free silver for eligible customers
- Highest buyback price, guaranteed
- Endorsed by Sean Hannity and Chuck Norris
Cons:
- Gold IRAs have more fees than regular IRAs.
- Gold can be harder to liquidate.
- Gold doesn't generate interest or dividends.
- You must store IRA gold in IRS-approved depositories (not at home).
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Can You Withdraw from a Gold IRA?
The same IRA withdrawal rules apply to gold IRAs. At the age of 59 1/2, you can withdraw from your gold IRA without penalty. If you withdraw early before age 59 1/2, there's a 10% penalty.[5]
There are two ways you can take your gold IRA distribution:
- Physical Distribution (In-Kind): The actual gold coins or bars will be delivered to your home. This is a good option if you're not ready to sell your coins yet (or if it's not a good time to sell). You can hold onto them yourself and sell later.
- Cash Distribution (Liquidation): This option will liquidate your gold coins, and the money will be transferred to your bank account. Note that the selling price is usually less than the current spot price.
Your gold IRA company should help you with the withdrawal process. In most cases, it should only take a few business days to get the cash or initiate delivery.
Yes, you can sell your gold bullions and coins in your gold IRA anytime you want. As long as you keep the cash in your IRA account and don't withdraw it, you won't be taxed or penalized.
Best Gold IRA Companies
Here are some of the most reputable Gold IRA providers with A+ BBB ratings that support IRA rollovers. We urge you to do further research before making a decision. Take advantage of their free Gold IRA kits to learn more.
Augusta Precious Metals
Augusta Precious Metals is known for superior customer service. Before you even open an account, you get free materials & conferences just to learn about Gold IRAs (no obligation).
If you do open a Gold IRA with them, you get lifetime account support from their entire team of gold specialists.
| Minimum investment | $50,000[6] |
| Precious metals offered | Gold and silver |
| Eligible rollover accounts | Traditional IRA, Roth IRA, 401(k), 403(b) |
| IRA custodian used | Equity Trust (recommended) |
| Depository used | Delaware Depository (recommended) |
| Buyback program | Yes |
| BBB grade | A+[7] |
Gold IRA Company Integrity Checklist
Free report and checklist that helps consumers compare and choose a reputable gold IRA company
Goldco
Goldco is one of the most popular Gold IRA companies. They often offer a silver coins promo when you open a Gold IRA. And they have a highest buyback price guarantee, which can help you feel more confident about the purchase.
| Minimum investment | no minimum purchase requirement |
| Precious metals offered | Gold, silver, platinum, and palladium |
| Eligible rollover accounts | Traditional IRA, Roth IRA, 401(k), 403(b), 457, Pensions, TSP |
| IRA custodian used | All major Self-Directed IRA custodians |
| Depository used | Delaware Depository |
| Buyback program | Yes |
| BBB grade | A+[8] |
Free Gold IRA Kit
- Up to $10,000 in free silver for eligible customers
- Highest buyback price, guaranteed
- Endorsed by Sean Hannity and Chuck Norris
American Hartford Gold
Check out American Hartford Gold if you only want to roll over a little bit of your funds to a Gold IRA. Their minimum is just $10,000. They will assist you with the paperwork for the rollover.
| Minimum investment | $10,000[9] |
| Precious metals offered | Gold, silver, platinum, and palladium |
| Eligible rollover accounts | Traditional IRA, Roth IRA, 401(k), 403(b), 457, TSP |
| IRA custodian used | Equity Trust |
| Depository used | Delaware Depository, Brinks Global Services, International Depository Services |
| Buyback program | Yes |
| BBB grade | A+[10] |
Birch Gold Group
Birch Gold Group is one of the oldest precious metals IRA companies with over 20 years in the business. It has a solid reputation and has lower minimums and fees than some competitors.
You'll be matched with a specialist for the entire lifetime of your account for personalized service.
| Minimum investment | $10,000[11] |
| Precious metals offered | Gold, silver, platinum, and palladium |
| Eligible rollover accounts | Traditional IRA, Roth IRA, 401(k), 403(b), TSP, SEP, annuity |
| IRA custodian used | Equity Trust, STRATA |
| Depository used | Delaware Depository, Brink's Global Services |
| Buyback program | Yes |
| BBB grade | A+[12] |
Free Information Kit
- Free "insider" info on gold & silver
- 1-on-1 care with a dedicated specialist
- Endorsed by Ben Shapiro and Ron Paul
Bottom Line
To convert your IRA to Gold, you must roll over the funds from your existing IRA to your new Gold IRA. For a smoother process and to avoid potential penalties & taxes, we recommend a direct rollover.
It's important to find a trustworthy Gold IRA company to work with. So, research well before investing, and make sure you understand the risks involved with precious metals investing.
References
- ^ WSJ. A Couple Stored IRA Gold at Home. They Owe the IRS More Than $300,000., Retrieved 02/08/2025
- ^ Internal Revenue Service. Retirement plans FAQs on designated Roth accounts, Retrieved 02/08/2025
- ^ Internal Revenue Service. Rollovers of Retirement Plan and IRA Distributions, Retrieved 02/08/2025
- ^ Internal Revenue Service. Retirement Topics - IRA Contribution Limits, Retrieved 02/08/2025
- ^ IRS. IRA FAQs - Distributions (withdrawals), Retrieved 06/14/2025
- ^ Augusta Precious Metals. Are there minimum and maximum orders?, Retrieved 02/08/2025
- ^ BBB. Augusta Precious Metals, Retrieved 02/08/2025
- ^ BBB. Goldco Direct LLC, Retrieved 02/08/2025
- ^ American Hartford Gold. Does American Hartford Gold have a minimum Gold IRA initial contribution amount?, Rerieved 02/08/2025
- ^ BBB. American Hartford Gold, Retrieved 02/08/2025
- ^ Birch Gold Group. Beginner’s Guide: How to Invest in Physical Gold, Retrieved 02/08/2025
- ^ BBB. Birch Gold Group, Retrieved 02/08/2025
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