How a gold IRA rollover works
Four steps, usually two to four weeks. The company's specialist and the custodian do most of the work.
- Open the self-directed IRA.A self-directed IRA is an ordinary IRA, traditional or Roth, with a custodian that allows physical metals. The application takes a few days.
- Fund it.Two routes. A transfer moves money from an existing IRA directly to the new custodian. A rollover moves money out of an employer plan such as a 401(k), 403(b), 457, or TSP. In both cases the direct version, custodian to custodian, is generally not a taxable event. This step takes one to three weeks and the pace is set by the custodian sending the money.
- Choose the metals.The account can hold IRS-eligible gold, silver, platinum, and palladium. You choose specific coins and bars with the specialist, and each product comes with its price and spread.
- Storage.The metal ships to an IRS-approved depository and is held in your account's name, insured and audited. You receive statements like any IRA.
Direct versus indirect
In a direct rollover or transfer, you never touch the money. In an indirect rollover, the plan sends the money to you and you have 60 days to deposit it into the new IRA; miss the window and it's treated as a distribution, with taxes and possibly a penalty. Employer plans also withhold 20% on indirect rollovers. Choose direct unless your tax advisor says otherwise.
Plans with a current employer
If your 401(k) is with an employer you still work for, you generally can't roll it over before age 59½ unless the plan allows in-service withdrawals. A 401(k) from a former employer can usually be rolled over at any age. The specialist will ask which kind of plan you have for exactly this reason.
Roth accounts
A Roth IRA transfers to a Roth self-directed IRA and keeps its tax treatment. A traditional account stays traditional. Converting from one to the other is a separate, taxable decision to make with your tax advisor.
Nothing on this page is tax advice; the rules have exceptions and your situation is specific. Confirm your case with a tax professional before you move money.