Precious Metals, especially gold and silver, are great for portfolio diversification and can be used to hedge against market volatility as well. The popular method of rolling over a 401k to an IRA gold is a great way to invest in physical precious metals, as well as plan for a safer retirement. Now the question is, how do you establish an IRA-gold investment?
After the Tax Payer Relief Act of 1977, physical precious metals were allowed to be added to an IRA. Gold, silver, platinum and palladium are the permissible materials in a IRA that is gold. The gold IRA does not allow for rare coins or collectable gold & Silver coins. Your precious metals broker will help you choose the right metals for your portfolio.
Before you decide on the metals that you will buy for your Self Directed IRA it is wise to begin the process of establishing a IRA. It is a good idea to contact your current custodian for information about adding physical metals to an existing IRA. You may not be able to invest in precious metals if your current account has specific guidelines or IRA plans. You will then need to start the process for a 401k rollover to a new, gold IRA.
Your broker will assist you in choosing a custodian specializing in handling gold IRAs. Once your broker has chosen a custodian, paperwork must be completed. This includes the amount you plan to roll into the new account and the names of any beneficiaries.
Usually, the process of setting up an IRA for gold investments takes between 3-5 working days. Once the setup is complete, it’s time for you to choose and place your metals into an IRA account. Only certain products are permitted in an IRA. Your broker will be able to tell you more.