Converting IRA to Gold

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Don’t have access to a 401(k)? Or are you simply looking for an alternative option?

Regardless, an individual retirement account (or IRA) is a smart option to put away money towards your retirement.

However, here’s a question we frequently get from our readers: Is there a way to convert it into another retirement investment option?

Is converting IRA to gold possible with the help of companies like Augusta Precious Metals?

What Is an IRA?

According to Investopedia, an IRA is long-term retirement savings account with certain tax privileges.

It is specifically designed for self-employed people and gig workers who don’t have access to 401(k).

There are different types of IRAs. Traditional IRA is a long-term, tax-deductible account.

It means you can deduct the amount you put toward your retirement savings from your taxable income.

Another popular option you might want to consider to diversify your retirement portfolio is Roth IRA.

It is a non-tax-deductible account that allows qualified transactions as tax-free.

It means you won’t need to worry about your withdrawals and investment gains being tax-deducted anymore.

Finally, did you know that there are gold IRAs as well?

These are retirement accounts specifically designed to be invested in the precious metal market.

Don’t worry. We will talk more about gold IRAs as we go through the different gold investment options later.

Before we move any further, please note that we still highly recommend seeking the advice of a financial advisor prior to making any decisions.

Can You Convert Your IRA?

Here lies the main question: suppose that you didn’t open a gold IRA to begin with. Can you still convert an IRA into gold?

Yes, you certainly can; in fact, there are different options to do so depending on how you define what “gold” is. 

For instance, do you want to invest in physical gold?

How about investing in the stock market, such as getting stocks, bonds, or even mutual funds of a gold company?

Investing in mining companies is also an option. Don’t worry; we will discuss each option in further detail below.

Different Gold Investments to Convert Your IRA Into

The first step towards turning your IRA into gold is converting it into a self-directed account.

It means that you’ll have more control over where your money is invested.

Some people prefer to seek independent financial planners to get sound advice before making their investment choices.

It is also not uncommon for a financial institution to supply you with your own account manager.

With that said, here are the different options that you can consider to diversify your investment portfolio further:

Physical Gold

When people think of converting their IRA into gold, they usually refer to physical gold.

Indeed, it is possible to place your physical gold and other precious metals (such as silver and palladium) into a self-directed IRA as long as your physical assets meet IRS standards and are stored in an IRS-approved depository.

The good news is you probably won’t need to search for a precious metals dealer.

A financial institution that handles self-directed and/or gold IRAs may also sell you precious metal assets such as gold bars.

It is also not uncommon for self-directed IRA companies to offer storage services. You only need to pay their stipulated storage fees.

Those that don’t have their own storage services typically work with licensed custodians.

Typically, these are financial institutions, such as banks and trust companies, that state and federal agencies have approved to provide asset custody services.

tips in converting ira to gold

Gold Coins

Physical gold can come in a variety of forms. As such, these alternative assets are subject to special requirements and strict regulations.

For instance, what are your asset’s size, weight, and metal purity?

Thus, some people prefer dealing with gold coins instead.

All they need to do is confirm that the type of coin they’re purchasing meets IRS standards, and they won’t have to worry about other factors anymore.

For instance, American Eagles and Canadian Maple Leafs are popular bullion coin options.

By the way, your options are not limited to the array of gold coins that you can choose from.

You may also consider other precious metal coins, such as palladium and silver coins.

For us, investing in physical coins is a smart choice because it allows one to skip many of the hassles involved when handling traditional gold.

All you need to do is contact a reputable metal dealer and your IRS-approved custodian.

Your custodian will then take charge of sending over your payment from your IRA.

Once the exchange of funds has been cleared, the dealer will take charge of shipping your purchased coins to the custodian’s storage facility.

Gold IRA

We have already briefly mentioned the gold IRA above as one of the different types of IRAs you can consider.

One of the things we like about gold IRAs is that they are already predesigned for gold investment.

Many financial companies and institutions also provide their clients with a comprehensive advisor and account manager to help them with asset management.

Aside from setting up a gold IRA as your main account, another option is to roll over your funds from a traditional IRA to your self-directed gold IRA.

The IRS actually allows a window for a direct rollover annually.

As long as you meet the 60-day rollover requirement, you’ll be able to transfer your money from one account to another minus potential penalties and taxes.

CBS News has a comprehensive article that discusses gold IRA.

Paper Gold

Finally, you may also choose to invest your money in stocks and similar financial products that are related to gold.

Jewelry companies and mining firms are just two of the most common options.

However, there are other related industries that you can also invest in that can lead to similar (if not better) results than if you have invested in actual gold.

Converting IRA to Gold the Right Way

Now that you know your options let’s now proceed to the steps you can do to convert your IRA.

Here they are:

Step 1: Choose an IRA Company

First, find an IRA company you want to work with for your self-directed account.

There are plenty of gold IRA companies, but our favorite is Augusta Precious Metals because they offer some of the top-rated services.

Augusta Precious Metals company

They have also been in the industry for several years, ensuring you only work with experts.

Step 2: Work With a Financial Planner

Once you have chosen your preferred company or institution, you can start working with your financial planner to diversify your retirement portfolio with any of the options we have featured above.

If you have purchased actual gold assets, they will be stored in their accredited facility for as long as the account is active and until you can receive distributions upon retirement.

You will also have the opportunity to choose whether your distributions will be paid in cash or gold.

How you can enjoy your benefits will depend on your contract.

Hence, be sure to read your documents thoroughly before signing anything.

It is also a good idea to seek a second opinion from a third-party financial expert if you want to confirm whether your account manager is acting toward your interest or the financial institution.

Gold Is the Way to Go

We live during troubling times. There are times when economic collapse feels as if it’s already looming over our heads.

Fortunately, there are still stable assets that you can invest in, and gold is a perfect example.

It has remained one of the most valued precious metals for thousands of years.

The good news is, investing in this asset is so much better when you already have an IRA established.

Plus, many companies like Augusta Precious Metals can help you invest safely and wisely.

We simply hope that you have found our guide to converting IRA to gold helpful in building your retirement fund.

Good luck!

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